Owning your own business has a lot of advantages. You can do something you’re passionate about and control your own work schedule. Many people decide to leave the grind of a nine-to-five to start their own business and never look back.
While there are many advantages to being self-employed, there are a few drawbacks. You might have a hard time getting your business up and running, and it could be years before you start making a steady income. Another factor to consider is the different types of insurance that you’ll need. While employers may have provided you with health insurance and other policies in the past, when you’re self-employed, you have to find your own personal and business insurance policies. If you’re ready to start your business and leave your job, you should research the types of insurance you might need. Here are some different types of insurance that you should consider.
1. Disability Insurance
If you become injured or seriously ill and can no longer run your business, you could face financial hardship. Many people choose to pay for disability insurance in case this happens. In most cases, a disability insurance policy will replace around 60 percent of your income, reducing the financial burden of time away from work.
For some people, disability insurance is essential. If you are the sole provider of your household and you have children or other dependents, disability insurance could be a lifesaver if you become injured. Also, if you work in a specialized high-paying field, you should consider getting a more comprehensive policy. Disability Insurance for dentists, for example, should cover you if you can no longer work in your field, even if your injury doesn’t prevent you from getting other types of work. These types of policies are called own occupation plans and offer better coverage than the basic any occupation plans available.
2. Health Insurance
Employers usually offer health insurance plans for their employees, but once you you’re self-employed, you’ll have to find your own policy. Self-employed health insurance can be expensive, but it’s a must. For one, the government penalizes anyone that doesn’t have health insurance. And without health insurance, you risk having to pay for expensive hospital stays and procedures out of pocket.
Do research on the policies available to you. You may not need the plan with the most coverage, especially if you’re young and healthy.
3. Liability Insurance
Liability insurance is important for business owners as it protects them in case of negligence claims. There are many different types of liability insurance, such as personal liability insurance, bodily injury liability insurance, and property damage liability insurance. Coverage varies and can help pay for medical bills or repairs necessary after an accident you caused. Professional liability insurance might be a good choice if you provide professional services to customers. It can help cover attorney fees and court costs if someone claims that you or your business made errors in your service. You can also get employer liability insurance, which will help your employees in case they become ill or injured on the job. In some places, businesses are legally required to have this insurance.
4. Life Insurance
You should look into getting a life insurance policy if you’re the sole provider for your family. While nobody likes to think or talk about it, your family could be faced with financial problems if you were to die unexpectedly. Life insurance will assist your family financially in the event of your untimely passing.
There are different types of life insurance policies. Term life insurance lasts for a certain amount of time, and is usually cheaper than permanent life insurance. Permanent life insurance policies last your whole life and build cash value, which you can take out or borrow from. This type of policy is more expensive but has more benefits for you and your family.
Owning your own business comes with many advantages. You get to choose your work schedule, do something you are passionate about, and have more time for your family. But being a business owner is also a huge responsibility, and requires that you do your research and obtain the right insurance and licenses. Comparing plans and choosing the best policies can be a headache, but having the right business insurance can save you and your business from financial ruin. Disability insurance will cover some of your income in case you can no longer work. Health insurance is essential if you want to avoid having to pay huge medical bills and a government penalty for being uninsured. Liability insurance can cover some costs in case someone were to make a claim against you or your business. And life insurance is a protection for your family as it can provide them with money in case you should pass away unexpectedly. There are many insurance plans to consider as a business owner, so use this information and do more research to decide what kind of insurance you need.