Important Insurance Issues for the Self-Employed (Part II)

Here are three other important insurance coverage for self-employed individuals to consider:

Disability Insurance: Disability is another insurance that can be acquired very reasonably through an employer. It is broken into two categories; short-term and long-term disability. Self-employed workers and small businesspeople are often the primary breadwinners in their family. But what if something happens that causes you to be physically unable to work for an extended period of time? This is what disability insurance is for. It provides you the safety net you need to keep paying your bills even when you are out of work.

Business Property Insurance: If you are doing business in a location outside of your home, you will need to consider a policy that covers all the furniture, equipment, and inventory inside your business from loss or theft. In addition, if you do run your business out of your home, you may need to add a rider on your homeowner insurance policy to cover your business-related property. As always, talk with your agent about what kind of coverage makes the most sense for you.

Liability Insurance: Whether you are a dentist, lawyer, building contractor, massage therapist, or whatever other kind of small businessperson, there is always the chance of becoming exposed to liabilities either from injury on your premises or as a result of your services. A good self-employed liability policy will protect you against legal costs, medical fees, property damage, and any other damage claims a plaintiff might make against your business. If you plan on being in business for yourself for any length of time, it is likely that an incident like this will occur. Rather than risk losing everything you have worked hard for, be sure to have a policy that covers you against all possible liabilities within your business operation.