If you’ve struck out on your own, you may be grappling with a few big business questions:
Where’s my next paycheck coming from?
How am I going to grow my business?
How am I going to protect myself and my business?
Hopefully you have a few ideas already about the income-related questions and how you’ll be bringing in money in the short-term and the long-term. But when it comes to protecting yourself and your business, things can start to get complicated. As a freelancer, it’s hard to know what type of insurance is necessary and what isn’t really needed. If you’re a solopreneur or freelancer and you’re looking for ways to protect your body and your business, here are a few types of insurances to consider:
Health Insurance and Dental Insurance: Both healthcare and dental are must-have insurances for anyone working for themselves. The last thing you want is to be out of work because you can’t get the care you need. If you’ve recently left a job, you can continue receiving health insurance on your ex-employer’s plan (this is called COBRA). Otherwise, check out the insurance marketplace under the Affordable Care Act.
General and Professional Liability Insurance: You’ll definitely want to protect yourself from anything going wrong with your business (or an unhappy customer suing you). General insurance and professional liability insurance usually comes bundled together.
Life Insurance: Your decision to get life insurance really depends on whether or not you have dependents. If you’re a young, single freelancer you probably don’t have to worry about life insurance quite yet. But if you have children or a spouse that depend on your income to survive, you may want to consider it.
Disability Insurance: Disability insurance, like life insurance, is another insurance type to consider depending on your circumstances. But if you couldn’t work due to illness or injury, disability insurance could be a lifesaver (or at least an income saver).
Other Specialized Insurance: Depending on the type of business that you’re in, there may be other types of insurances that you need. Take a moment to research the trade associations for your profession to see if they recommend or provide any additional insurance.