9 Types of Insurance Essential for the Self Employed

As a self-employed small business owner, business insurance or other types of insurance — for yourself, your employees, or your business — may seem like a luxury, or even unnecessary. Many comprehensive insurance plans, however, are less expensive than you might think. Purchasing one not only protects you the business owner, it helps you take care of and hang on to the talented people you’ve employed. Here are 9 types of insurance, in no particular order, to consider if you are self-employed.

1. Liability Insurance

   Every small business should carry some kind of liability insurance, which, when purchased in the form of a “catch all” general liability insurance package, covers several kinds of liabilities, including bodily injuries and property damages resulting from accidents on your premises, and injuries resulting from your products or services. Less broad, more narrowly focused liability insurance plans are available as well, and may be more appropriate for smaller, niche businesses.

2. Group Health Insurance

   Even if you have just two or three employees, providing them with a group health insurance plan will help you retain the individual members of your talented team and protect their spouses and family, who otherwise might go uninsured. And the amount you pay toward employee premiums may be tax-deductible. Before purchasing a plan, you should ask your employees what kind of health coverage they feel might be best suited for them. What group health care plans are specifically required to cover varies from state to state. Websites like businessinsurance.org will help you locate plans for your particular zip code.

3. Workers’ Compensation Insurance

   Workers’ compensation insurance covers your employees’ medical expenses and some portion of their lost wages if they suffer an injury while on the job. In most states, businesses with employees are required to carry Workers’ Compensation Insurance through either a commercial carrier or, if one is available, a State Workers’ Compensation program. Workers’ Compensation Insurance is probably the most beneficial of insurance types for business owners with employees, and also to be required by law.

4. Commercial Auto Insurance

   If your small business uses company vehicles to transport employees, products, or equipment, commercial auto insurance will protect those vehicles, insuring them from damage caused by weather, vandalism, and collisions. If you do not own company vehicles, but your employees use their own cars for company business, you should consider what’s called non-owned auto liability for protection in the event the employee doesn’t have insurance.

5. Property Insurance

   Property insurance will protect you in the event of a natural disaster, vandalism, fire, or theft that damages a building you own and do business in. Property Insurance will cover the property of customers who have physical assets, such as a piece of furniture in your antique restoration shop, in the event of a fire or other types of disasters. Business interruption/loss of earning insurance can be added as a rider to protect your earnings if, due to fire, natural disaster, or burglary, your business is unable to operate.

6. Renter’s Insurance

   If you are self-employed, run a small business, and work out of your home, consider purchasing renter’s insurance, a relatively inexpensive type of insurance that covers damages to your property and your possessions, including computers and clothing. It also covers a personal injury sustained in your home. Your landlord’s insurance will not cover your belongings in the event of a burglary, fire, or natural disaster, any of which could bring your business operations to a halt.

7. Data Breach Insurance

   This is a type of insurance whose time has come. If your business stores sensitive information about your clients or employees, including information found on W-9s, paychecks, and paper or electronic correspondence, on servers or in paper files, you are responsible for protecting that information. Data breaches are becoming more common, and small business owners are not immune to the costs of such a breach.

8. Professional Liability Insurance

   Professional liability insurance protects you and your business in the event you are charged with professional negligence, failure to perform or improperly rendering your professional duties. General liability insurance does not provide this protection. It’s especially crucial lawyers, accountants, consultants, real estate agents, and even hair salons and technology providers have this type of coverage.

9. Disability Insurance

   If you find yourself unable to work due to an accident or illness, disability insurance generally replaces 50 to 60% your income. In such an event, you may already have the money on hand to support yourself in the short term. But long-term coverage can help to sustain you, the business owner, if you need an extended period of time for recovery or are unable to ever return to work. As with any insurance policy, carefully review, with the help of a good insurance agent or lawyer, all of the fine print before making your purchase.

Taken From Insurance Quotes