7 of the Best Self Employed Insurance to Consider 

Intro:

Some freelancers use gig work as a side hustle to make extra money. Other freelancers have turned independent contracting into careers. Nonetheless, self-employed business insurance protects entrepreneurs in their endeavors.

The United States Internal Revenue Service classifies self-employed professionals as small business owners. Thus, the IRS taxes entrepreneurs accordingly.

Since government departments treat freelancers as business owners, self-employed professionals must see themselves as such. Purchasing insurance is a substantial investment, even when it feels like a cost.

For example, cyber security has come to the forefront as more companies take their operations online. Digital payments and processors make transactions easier to complete.

However, digital transactions also have risks. Hackers have shown that they can breach online security protocols, including the online security protocols of corporations like Target.

Thus, some self-employed professionals benefit from investing in cyber security insurance.

We outline seven of the best self employed insurance to consider.

Business Insurance

Self-employed insurance falls into two categories – business and personal. Business insurance covers company operations, employee actions, and customer safety.

Business policies protect policyholders against financial losses. Litigation is expensive, even when the defendant wins the case. Therefore, business policies also protect company assets so that it can rebound.

1. General Liability

Most self-employed professionals work as web designers, assistants, and writers in virtual environments. Others fall into other IT, consulting, and customer service categories.

General liability insurance benefits virtual and customer-facing self-employed professionals. It’s also the most common policy.

The policy protects entrepreneurs in liability cases where plaintiffs believe neglect caused them harm.

2. Professional Liability

Professional liability insurance protects entrepreneurs when plaintiffs accuse them of harm caused by errors. Errors and omissions policies cover self-employed professionals and can extend to protect employees.

In some circles, malpractice insurance falls into the professional liability category. Thus, doctors, legal professionals, and accountants invest in professional liability policies.

Product liability insurance is another liability policy to consider. The policy protects entrepreneurs financially in case their products cause harm to consumers.

3. Commercial Vehicle

The number of rideshare drivers and delivery professionals on the road remains stable entering 2023. Thus, self-employed commercial drivers must purchase commercial vehicle policies.

Keep in mind that most states and companies require commercial vehicle policies. Purchasing commercial vehicle policies helps entrepreneurs fulfill legal obligations and protect their cars.

Freelancers who deliver for Amazon under the Flex program can consider AmazonFlex insurance. Learn more about it from Selfgood.

4. Business Interruption

In 2020, very few professionals fathomed that the American economy would reach a near standstill – yet, it did.

The pandemic lockdowns became an extreme case; businesses can also experience interruptions for other reasons. Weather and Acts of God are two common reasons.

Since business interruption can hit self-employed professionals harder, insurance can help them weather the fallout.

5. Cybersecurity

Since technology makes completing business transactions easy, self-employed professionals must protect their company and customers’ data.

Cybersecurity insurance protects self-employed professionals when their security measures fail. Data breaches have hurt corporations, and they can wipe out small businesses.

Insurance focused on cyber security breaches protects self-employed professionals against complete financial losses.

Personal Insurance

Self-employed professionals benefit from purchasing standard business insurance policies. Then, entrepreneurs must protect themselves with healthcare and dental insurance.

6. Healthcare

Some states mandate the purchase of healthcare insurance. Otherwise, individuals will face penalties. Health insurance helps entrepreneurs manage their well-being.

Moreover, in 2023, the marketplace developed policies that meet the needs of freelancers, independent contractors, and gig workers.

The Affordable Care Act, or Obamacare, opened the healthcare insurance marketplace to individuals who experience chronic and pre-existing conditions.

Therefore, entrepreneurs can afford the care they need to keep themselves healthy and their businesses running.

7. Dental

Healthcare and dental insurance go hand-in-hand. Dental policies focus on oral health, which impacts an independent contractor’s ability to deliver high-quality work on time.

Ongoing oral health issues can turn into severe conditions. For example, untreated cavities can lead to root canals and tooth loss.

Paying for dental insurance encourages policyholders to visit their dentists twice annually. Since most policies cover 100% of dental cleanings and exam fees, self-employed professionals can treat oral issues before they become severe.

Conclusion

Self-employed professionals can speak with insurance agents to find the optimal mix of business insurance policies to purchase. In addition, providers have started bundling standing policies that make the process easier and more cost-effective.