07 Jul Insurance Guide for the Self-Employed

Being self-employed is great and comes with many benefits. You’re in charge of your career, instead of a boss or the higher ups at another company. You can pick and choose your clients, decide how much to charge, and even which hours you wish to work. With that said, there’s always a downside. Being self-employed means that you must have the right types of business insurance in place should something happen.

Wondering just what those forms of insurance are? Here’s a quick guide to keep you on track and protect your livelihood.

A Business Owner’s Policy

Known as a shorter way of describing three essential policies that are usually sold to business owners (and the self-employed) as a bundle, a business owner’s owners policy is essential. The three policies usually included in a business owner’s policy are:

• Commercial Property Policies – Commercial property insurance is set up to protect not only the building that your office, warehouse, or workshop are located in, but also everything inside of those spaces. Your computers, equipment, inventory, and more are also covered. If something happens to your building, such as a tornado, lightning strike, fire, or more, your insurance will kick in.
• Business Liability Policies – A business liability insurance policy is designed to cover injuries and other things that occur in your building or as a result of doing business. If you own a landscaping company and one of your employees damages a customer’s home, then the insurance will cover any damages. However, this insurance won’t cover any injuries to your employees. You’ll need a separate type of insurance for that.
• Business Interruption Policies – If something should happen to your business that forces you to close your doors, leaving you without income, then your business interruption policy will kick in. Designed to provide needed protection in case of a fire or something else catastrophic, this policy will also help pay for the costs of moving your business to a new temporary location.

Additional Forms of Insurance

On top of the three policies bundled into a standard business owner’s policy, there are a number of other types of insurance that a self-employed business owner should consider having in place as well. These include:

• Commercial Auto Policies – Do you use your vehicle for company use? If so, then it’s probably a good idea to have a commercial auto insurance policy. Vehicles that are owned by the company, are used to haul around tools and other supplies, and are solely used for business purposes, whatever they might be, should be covered by one of these policies.
• Workers’ Compensation Policies – If your business has employees, no matter the number, it’s important to have worker’s compensation in place should they become injured on the job. This policy is necessary, and in some states, a requirement for businesses.

If You Need Business Insurance

If you’re self-employed and need business insurance, give us a call! We can help you determine which policies you need and what you’d like to have covered. Also, we’ll answer any questions that you may have regarding business insurance for the self-employed.