Essential Insurance Guide For Freelancers
Thanks to Alan Cleaver/Flickr
For many freelancers, it can be tempting to forget about insurance. After all, working for yourself requires every last cent to be put towards growing your business - why throw money at expensive insurance policies? The trouble is, you really never know what might happen in the future. Here are five essential insurance policies for freelancers that you should seriously consider.
General & Professional Liability
Accidents happen to everyone, and whatever your business is, they can happen to you, too. They can also happen to anyone you hire and your customers. Taking out a liability insurance policy covers you for any damage or injury that occurs because of your product or service. Professional liability covers you against claims that you have been negligent or acted in a way that could be construed as misconduct. You never know what might happen, so make sure you are covered for any eventuality.
Health insurance is probably the most important policy you can get as a freelancer. The costs of medical care are huge, and the simple fact is that at some point you will need it. Make sure you have a good health insurance policy so that you don't have to pay an arm and a leg for the arm or leg you just had fixed. Investigate all plans and policies, and don't forget to read the small print.
Unfortunately, it can only take a second for a very healthy life to become an extremely restricted one. Whether it is a bad accident or a scary diagnosis from your doctor, you could end up unable to work for a living. Disability insurance could be the only thing that can help keep you going during your recovery period. It's worth pointing out that disability insurance only covers you for around half your normal income at most, so it's a good idea to start putting aside savings, too.
Many freelancers work from home or rent an office, so getting renter's insurance is another essential policy to consider. This will protect all the equipment you use to earn a living against theft, fire or a natural disaster. Accidents do happen. It might be a phrase well-loved by everyone in the insurance industry, but unfortunately for everyone else, it is true. Make sure your renter's insurance covers you for everything you can foresee - and some things you can't.
Life insurance is one of the many things that most young people think of as irrelevant. However, more savvy freelancers understand that this a major insurance myth. If the worst did actually ever happen, what will the people you love and care about do in your absence? Life insurance is not expensive, so don't overlook it. You won't need it when you are gone, but your loved ones may need to live off it.
Whenever you take out any insurance policy, always make sure that you read the small print. It can be extremely distressing to think you have cover for a particular situation, only to realise you haven't understood the terms and conditions.