There are many types of freelancers and self-employed professionals out there in a wide variety of industries. Some may be doing it to earn a little extra money; others may be using it as their main source of income.
No matter what type of self-employed professional you are, you need to have business insurance to protect you during critical moments. Here is what you need to know about business insurance for self-employed professionals.
Can I get business insurance if I am self-employed?
Yes, you can! Whether you are after small business insurance or something that could protect you and your customers against potential accidents or damages, self-employed professionals can receive business insurance.
Essentially, the main purpose behind business insurance is to protect your business from financial damages. This can include damage to the property of your business, as well as financial issues that can come about due to the loss of staff or from clients that want to sue you.
The type of business insurance you take out will depend on what type of business you run. The factors you need to keep an eye on are:
- Whether or not you have employees
- Whether or not your business has shareholders
- Any assets that your business owns
- What products or services your business provides
- The type of business you own
Make sure to prepare all of your information about your business before you reach out to an insurance provider. That should make the insurance process a lot easier to sort out.
What should I protect using my business insurance?
It's understandable that as a self-employed person, you may feel more inclined to protect your business. That's why you should know that business insurance is extremely important to have. There are four forms of protection you can get. You can:
- Protect your assets through contents insurance and buildings insurance
- Protect your revenue through credit insurance
- Protect your liabilities through professional liability insurance
- Protect your employees through key man insurance, shareholder protection insurance, and relevant life insurance
Think carefully about what types of insurance would be most relevant to you. If you have a lot of employees, you may want to look into what can protect them from injuries, violent customers or accidents, and if you own a business building, you may want to get buildings and contents insurance. However, if you are freelancing from your home and do not have any employees, you may not need this type of insurance. So, think carefully about what would suit you best.
Do I need business insurance if I work from home?
Business insurance is extremely important when it comes to individuals that are self-employed. You may think that working from home means that you are a lot safer than someone who works in a separate office, especially if you are the sole employee of your business, but this is not entirely true. Home insurance will not be enough to cover you if you damage your equipment or if you need to protect your clients.
In some instances, your home insurer may tell you that they can cover you and any equipment you have at an extra cost, however it does not protect any revenue, liabilities or employees that work with you. Business insurance can do all of this; therefore, it is worth having it just in case.
How much does it cost to have business insurance?
As a self-employed professional, you need to have business insurance to keep you safe. The amount you pay will depend on the business you run. If you have a higher risk of damages or injuries, it's more likely that you will pay a higher premium. Your insurer will look at the risk factors and then decide on what sort of protection they would like to offer you. There are a wide range of insurers to choose from, each with different insurance costs.
Are you ready to purchase business insurance?
Having business insurance is very important for someone who is self-employed. That way, you can avoid risks becoming real problems. Make sure to find the best insurance for you to make sure you, your employees and your assets are always protected. Here's a quote from business owner Michael Ryan on expanding Mr Seo, SEO Consultants
"I never realised the importance of business insurance until I started to plan ahead and expand the business and realise how valuable these assets become.
