We all hear about insurance constantly – how expensive it is, how plans are always changing or evolving, whether or not your job provides this benefit. But what are the most relevant – and typically necessary – types? For entrepreneurs, start-ups, and small business owners, knowing the necessary types of insurance for your company and simply for yourself is crucial. In an economic world where budgeting is key to stay afloat, it is important to know what kind of insurance is right for you.
This is by no means an exhaustive guide, but here are a few examples of different types of insurance you may have heard of or are considering, and a basic idea of what plans to look at for yourself and your business.
This is, of course, the most prevalent type of insurance, and the most necessary. For entrepreneurs and start-ups, this is also one of the key disadvantages of working for yourself—no more company insurance to protect you!
Health insurance is constantly in the news for its fluctuating rates and the terms of different plans, like the ever-changing landscape of the Affordable Care Act. Some major companies include Cigna, Blue Cross, Medicare, Humana, and Aetna, among many others. It is important to carefully read all aspects of these plans because you want to make sure you know how they define their conditions.
As a business owner, you want to be in prime health to run your company, and – if you expand – you may also want to be “in the know” about healthcare providers for future employees.
Car insurance is another major type of insurance that most people need. Most of us rely on our vehicles for transportation, so you want to make sure it is protected. It’s also possible that any driving or transportation you do for your small business could be written off as a business expense!
There are tons of car insurance companies – Allstate, Nationwide, State Farm, and more – and each one offers different benefits. An important piece to note is that, in the event of a serious accident in which you may need an attorney’s help when filing claims for all damages, you want a company that won’t be too resistant. Accidents can look bad for a business owner, especially without insurance, and you also don’t want to be spending extra money where you don’t have to.
Dental insurance is usually separate from health insurance, and co-pays and premiums are especially important here. Medical procedures are costly, and dental is no different. For self-employed individuals, the expenses can be astronomical.
You should look for coverage with a reasonable monthly payment and co-pay amounts. Since dental visits are typically done annually, you’ll want to protect yourself, your teeth, and save some money. Dental health is often overlooked, but no matter who you are – self-employed business owner or not – you need healthy teeth to stay in good shape.
Home or renter’s insurance is key in protecting your property. It could protect you in the event of some accidents or disasters such as fire or burglary. If your start-up is in a solid place to lease an office space, or even if you work from home, renter’s insurance is a necessary type of coverage to protect all your assets, both personal and business-related.
The insurance world is tricky, and often requires legal assistance and long discussions with companies. However, insurance can be invaluable in the event of accidents or emergencies, so it is important to make them part of your life and your budget. Do your research and make sure you are properly protected.