Why Freelancers Should Get Insurance

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As freelancers aren’t bound to the same responsibilities that workers with a traditional 9-5 are, this also means that these freelancers don’t get the same benefits that a conventional employee would. In fact, entrepreneurs are their own business and should act as such in terms of protecting themselves and their company.

Insurance for Freelancers

Freelancers make a living based on the scheduling and planning they do. This same level of detail should go into freelancers’ plans for the future when it comes to expecting the unexpected. If you’re wondering how insurance will benefit you and your business, keep reading.

1. Cover Your Assets

Just as working for yourself has its perks, this freedom comes with its own set of requirements. Freelancers aren’t just employees that work according to their own rules. As a freelancer, you are the owner of your own business and you need business insurance to protect your assets. Whether you have a brick-and-mortar location or you run your business from a coffee shop, insurance will work to protect your company, your employees, and your reputation.

While you may think you can run a business without needing insurance, think again. Since the people that freelancers work with are clients, freelancers need to have their own insurance to meet contractual obligations and to ensure their business is properly protected from a legal standpoint. This sort of business insurance will cover acts of nature, emergency situations, and potential lawsuits against your company.

In this day and age, lawsuits are a real possibility, even for freelancers. From slander to trademark infringement, there are numerous ways where insurance may save you and your company thousands of dollars in the event someone takes legal action against you. With General Liability Insurance, you’ll be able to to have a policy that will kick in in the event that someone demands compensation for any injury they incurred by your work or on your premises. This will cover claims of copyright infringement, libel, and slander as well.

2. Protect Your Bank Account

While working as the owner of your own business, it may be tempting to save money and avoid opening up other insurance policies. As these insurance policies benefit individuals only in an emergency, many freelancers avoid getting insurance altogether, hoping they’ll never need it. However, once an emergency happens, these freelancers find that they are out of luck.

In the event of an emergency like a car accident, freelancers with no car insurance will have to find a way to cover all expenses in the aftermath of the incident. In many cases, these individuals may have to pay these fees out of pocket. Alternatively, with insurance, freelancers will have better luck with the outcome of an accident. Marie Napoli from Napoli Shkolnik PLLC explains that in states that use a no-fault car insurance system, you cannot file a claim directly against the at-fault party. This no-fault system requires the insurer to pay all or some of your lost earnings and medical bills after a car accident, regardless of whether you or the other person is at fault for the accident. In order for freelancers to benefit from such a system, they must first have a car insurance policy in place.

3. Protect Your Health

As a freelancer, you may grimace at the thought of not having a built-in policy for health insurance. While many unconventional employees cite this as a downside of freelancing, this doesn’t make the need for health insurance any less valid. Without health insurance, you likely won’t be able to see a doctor, dentist, or any medical professional without paying exorbitant fees.

Failing to take care of your health will result in missing days of work. If freelancers don’t work, they don’t earn. Instead of taking on this huge financial risk, consider signing up for health insurance. With insurance, you’ll be able to take advantage of the significantly reduced cost of medical care as most health insurance policies cover deductibles, co-pays, and other expenses related to treatment. Thus, having this insurance will help you maintain your good health that much more easily.

Taken from Pixabay.com

4. Life Insurance

While death is a touchy subject for many, most traditional employees have a life insurance plan provided by their employer. Freelancers, on the other hand, often fail to make plans for life insurance. However, if you are a freelancer with debt, dependants, or property, it’s a good idea to sign up for a life insurance policy.

A life insurance policy will ensure that your dependents continue to be taken care of in the event of your death. Similarly, this insurance policy will cover your debts and will go towards the taxes for your property, should you pass away.

While every freelancer may not have insurance, all freelancers should. In life, one never knows what to expect and freelancers must take this into consideration by protecting their businesses, assets, and health with insurance. Keep this information in mind as you work to grow your company and strengthen your business practices.

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Samantha Acuna is a writer based in San Francisco, CA. Her work has been featured in The Huffington Post, Entrepreneur.com, and Yahoo Small Business.