One important part being self-employed is making sure you have insurance to protect yourself, your family, and your business in case of an accident, a medical issue, or other unexpected event. Types of self-employed insurance you should consider include:
- Disability and life insurance
- Health insurance
- Dental and other insurance
- Business insurance
Disability and life insurance for self-employed
Many employers offer disability insurance (both long-term and short-term) and life insurance to their employees. These types of insurance help protect you and your loved ones should something unexpected happen. Since you’re working for yourself, you need to take steps to protect your income if you can’t work for a short or long period.
Consider your individual situation to decide what level and types of coverage you need. For example, if you have 3 to 6 months of emergency savings, your family might be OK if you miss a few months of work yet struggle during a longer gap.
Health insurance for self-employed
Finding health insurance coverage is a key concern for many freelancers and small business owners. You may consider one of the four options below:
A health savings account (HSA) can help reduce your taxes and pay for qualified medical expenses now and in the future. If you want to contribute to an HSA, you must be enrolled in an HSA-eligible health plan, so think about that when choosing your health insurance.
Dental and other insurance for self-employed
Dental insurance, vision insurance, pet insurance—you can get insurance for all kinds of things. When looking at insurance options, be sure to consider the cost of your premiums, any plan maximums, and the likelihood you’ll need the insurance. How would you manage the expense if you didn’t have insurance? Taking a few minutes to add up the costs and consider “what if” scenarios can help you make a more confident decision.
Business insurance for self-employed
Business insurance helps to protect you from the unexpected costs of running a business. It may help to fill in the gaps to make sure both your personal assets and your business assets are fully protected from unexpected catastrophes. The 6 different types of business insurance include:
- General liability
- Product liability
- Professional liability
- Commercial property
- Home-based business
- Business owners’ policy
Depending on what products or services you’re offering and how your business is structured, your state may require you to have business insurance.