Starting your own business or being your own boss comes with its own challenges – most of them centered on managing your finances cautiously, so that you don’t end up spending more than you actually need to. This means, you’ll need to make a clear distinction between what you need and what you don’t, and limiting your expenses to just what you need.
With that said, what about self-employed insurance? Into which category does it fall – things you absolutely need or things you don’t? Is insurance a “luxury”, or is it an essential? While this question might seem to have an obvious answer, the question is whether they need insurance right now.
As a self-employed individual, your business and in turn, your ability to thrive depends on your own well-being and your ability to dispense your service successfully. This means that anything that contributes to your business’ success – your health, your car, your home – needs to be protected and insured against any possible failure.
So, the question isn’t whether you need insurance, the question is, “What type of insurance do I need as a freelancer or self-employed individual?” Here are 5 types of insurances you absolutely must have.
1. Health Insurance
This one is pretty much a given. Health care is expensive, and this makes it all the more essential that you’re sufficiently covered should you ever need it. While applying for health insurance, consider your needs carefully before choosing the kind of insurance you want such as how often you’ll need your insurance, cost of the plan, and if your current physician can be retained under the plan. There’s only so much you can afford to shell out, so shop for a plan that won’t eat into your budget, and still covers you adequately when the need arises.
2. Renters’ or Homeowners’ Insurance
If you’re working from home, or rent an office space, you need renters’ or homeowners’ insurance. They can protect your property and assets, such as computers and other essential equipment that you use in your business. This will allow your business to recover quickly from losses incurred during unforeseen circumstances like thefts, fire, or natural disasters. While shopping for appropriate plans, talk to an insurance expert about the finer details about the plans, since some plans may not cover damages caused by natural disasters like floods, earthquakes or fires.
3. Disability
According to a CFA-Unum report, nearly one-third of the American working force find themselves disabled due to an accident or illness each year. As such, disability coverage can ensure you’re still able to keep yourself and your family going without putting a serious crimp on finances. Disability insurance can cover both permanent and total – both partial and total – disabilities. When it comes to protecting yourself and your dependents from something unpredictable, it’s always better safe than sorry.
4. Liability
There are two types of liability insurance plans. General liability insurance is designed to protect you from any personal or property damages sustained in your place of business. Professional liability insurance protects you if your business is charged with damages owing to negligence or misdemeanor. Professional liability can help you preserve your reputation and trust with clients.
5. Life
This may be a difficult proposition to think of, but it is an absolute necessity. Ensuring that your dependents – your family and your business – are properly taken care of in the event of your passing is a responsibility you shouldn’t shirk. When you’re self-employed, your family will need to contend with a number of expenses and obligations if you predecease them such as loss of a steady income, dispensing unpaid debts and decisions pertaining to the continuation of your business. The easier you can make it for them, the less they’ll have to suffer.
Choosing the right plans for your insurance needs a clear-headed mindset, so always ensure you talk to an insurance expert who can explain the ins and outs of each plan and guide you in these decisions.
Hotwire Insurance Services, a full-service independent agency, works for you and not insurance companies and does not charge a broker’s fee. Hotwire Insurance Services local agents can answer all your insurance requests.
