Business Insurance and Self-Employment

Do Self-Employed Workers Need Business Insurance?

If you’re self-employed you may not consider yourself a business owner but that’s exactly what you are. 

Whether you are a plumbing contractor or freelance web designer, there’s always risk involved with your job. To protect against those risks, you need some type of business insurance. 

Many self-employed individuals don’t think about obtaining business insurance but it can be a very costly oversight.  

Some self-employed workers may think their homeowner’s insurance policy covers them since they run their business from their house. Unfortunately, homeowner’s insurance only applies to personal property and liability and most homeowner’s policies exclude coverage for businesses operating in the home.

What is Business Insurance?

Business insurance refers to a broad range of insurance types designed to fill gaps in existing coverage. It protects against the costs of running a business including accidents, natural disasters, and lawsuits. 

Without business insurance, your business could be responsible to pay out of pocket for property damage, lawsuits, employee injuries and issues related to data loss.

If you are found liable for damages and don’t have business insurance, your personal assets such as bank accounts, cars or homes can be targeted. 

Types of Business Insurance for Self-Employment

You may not require all types of insurance depending on your job. Tt’s important to understand your potential risks and the different insurance options available before purchasing coverage. Here are the most common policies for self-employed individuals:

General Liability Insurance

If you accidentally break an expensive object while working at a client’s property, liability coverage protects you. General liability insurance also can protect you if you are sued for slander. 

Professional Liability Insurance

Also known as errors and omissions (E&O), professional liability insurance protects you against negligence claims resulting from mistakes or failure to perform services. It also covers you if a client is harmed by any service or advice you provide. Professional liability insurance covers financial loss.

Business Owner’s Policy (BOP)

Business owner’s insurance policies combine several different coverages into one convenient package at a reduced rate. A BOP might also protect your business property/ equipment and cover your pay your bills in the event your business needs to close temporarily.  

BOPs are a good option for self-employed individuals because buying a combined policy is less expensive than buying separate policies. 

Workers’ Compensation

If you have any employees, workers’ compensation coverage is mandatory by law. Workers’ compensation coverage protects you If any of your employees are injured at work and will generally cover any lost wages and medical expenses. 

Choosing Your Policy

The type of business coverage you need depends on the type of work you do. For example, a self-employed contractor who works onsite at a client’s home would need different coverage than a freelance writer who works mostly from their own home.

To choose the right policy, contact your insurance agent to discuss your insurance needs and get some quotes.

Why We Love Allstate

Tailored Insurance

We specialize in businesses like yours and tailor coverage to the risks in your field. Not all businesses have the same liabilities or risks. So one size fits all coverage doesn’t work. Allstate offers a basic Business owners policy (BOP) as well as unique business insurances for industries like Real Estate Agents that have increased coverage where agents need it most.

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Easy Claims

Claims responsiveness and Trustworthiness. Allstate is one of the largest and most established providers. Your claim will be taken care of (you’re in good hands).

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Better Community

Allstate prioritizes community where you work and live. They’ve structured their business so you always have a local point of contact when you need it. Local agencies create jobs and put money back into the community. Cullen Insurance has given tens of thousands to local causes and numerous client appreciation events at Jethawks stadium.  

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Trusted Agents

Your local agent knows you and your business inside and out, which could be key to managing your business with success and peace of mind.

Count on long-term one-on-one guidance from someone who knows and cares about the nuances of your business.

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