How to find affordable insurance for the self-employed
These tips can help you get the right business insurance for the self-employed — at the right price:
- Compare your coverage. Just like with personal insurance, check your business insurance policies regularly to help save money. Gather quotes at least once a year. Be sure to compare apples to apples when it comes to premiums and deductibles.
- Get recommendations. Check with friends, family and other business owners for recommendations on specific insurers. Talk with suppliers and other companies in the same line of work for recommendations. Read online reviews of insurance companies you’re considering.
- Check with industry groups. If you belong to a professional organization, industry group or your local Chamber of Commerce, ask them about insurance partners who may offer local businesses a discount.
- Do your research. While cheap insurance may seem like a good idea, a policy is no longer a bargain if you can’t get the right coverage, reach someone on the phone or successfully file a claim. Research the insurers you are considering to make sure they’re financially sound and have good reviews for customer service.
The 6 most common self-employed business insurance types
Self-employed business insurance typically includes:
1. General liability insurance
General liability insurance is the first type of business insurance many self-employed business owners buy.
While sometimes called “slip and fall insurance,” general liability usually covers situations if your business is found responsible for an accident that injured someone or damaged property that doesn’t belong to you.
In some professions, you can’t get hired or start jobs without providing a certificate of insurance that proves you have active general liability coverage for your business.
2. Commercial property insurance
Commercial property insurance covers most of the physical things you need to do business — such as your equipment, furniture, inventory and the building structure that you own.
When you have property insurance, you may be able to get help replacing your stuff or repairing your damaged building after a covered event, such as a burst water pipe, fire or vandalism.
3. Business owner’s policy (BOP) insurance
A business owner’s policy, also called a BOP insurance policy, combines all of the coverage of both general liability and commercial property insurance into a single, more efficient and comprehensive package.
The beauty of a BOP is that it can carry more protection than just a single policy. It can help cover damage that you or your employees may inadvertently cause to another person’s property, as well as bodily injury accidents that injure patrons or passersby to your business.
BOP keeps going to help protect your business inventory in the event of a fire or water damage or other covered event.
And its arms reach out to cover business income interruptions; advertising injury if you’re accused of infringing someone else’s copyright in your advertising, libel, or slander; and can provide a legal defense if you are sued. In short, a BOP can do a lot.
