If you’re a freelancer, we would like to ask you a question. Do you have business insurance? In many cases, the answer to that will be a straight ‘no’.
It’s understandable why. When you are working for yourself, it’s necessary to have as much of your money available to grow your business as you possibly can. And, there doesn’t seem like much point in throwing your profits at insurance, which you don’t think you will ever need.
But, perhaps you should think again. Here are several types of insurance you might need – and why they are so important.
General liability insurance
No matter how careful you are, an accident can always happen. Whether it’s in the car while driving to a meeting, or even a fall in your home office, they can have a dramatic effect on your work. And, let’s not forget, accidents can also happen to your customers. To give yourself the protection you need, make sure you have a robust general liability insurance plan in place. You can also think about professional liability, which will protect you against claims of negligence. These two insurance plans are the most basic coverage you can get for your business, and they are necessity. Nobody knows what will happen in the future, and you have to be covered for anything.
Renter’s insurance is necessary for anyone that works from home or rents out an office. Most small businesses fall into this category, but surprisingly few have sufficient cover. It will protect your business equipment from fire, theft or natural disasters. Don’t scrimp on this – for many small businesses, their equipment is the tools of their trades, and they can’t earn a living without it. Why risk it all for a small monthly fee?
As a freelancer, health insurance is one of the most important things to investigate. Medical care is expensive – that much is clear to everyone. And, if you don’t have the cover, you are going to take a severe hit in the pocket, as well as missing out on available work. There have been plenty of horror stories about freelancers not having the right medical cover. Don’t become one of those stats.
As we have said before, accidents happen. And, sometimes they can be life-changing. But it’s not just accidents that can take you away from your work, it’s illness, too. It only takes a small trip or fall, or a scary diagnosis from your physician, and your life could change dramatically. So, don’t underestimate the act of putting some money away in disability insurance plan. It could be the only thing you have to help you through your recovery period.
Of course, the inevitable will happen to all of us one day. But what if it happens a little sooner than we thought it would? The chances are that we won’t care at all, but what about our loved ones? Make sure they have something to fall back on when you leave the mortal coil.
As you can see, insurance is there for a reason, not just to irritate you each month. Always read the small print, of course, to ensure you insure with the right plan.