Self-employed business insurance
Business insurance for the self employed can be confusing. There are different types of coverage that protect you from various risks and it’s not always clear which types you need.
To help make this process easier for you, we put together a helpful guide that breaks down the essential types of self-employed business insurance.
Why do the self employed need business insurance?
If you are self employed, being financially prepared for unexpected events is one of the best ways to be confident that your business will survive — no matter what happens.
Business insurance can protect you from unexpected financial losses after:
- Business disputes
- Injuries involving your business
- Property damages
- Vehicle accidents
- Theft
What type of insurance do the self employed need?
There are many rewards to answering only to yourself, but there are also many risks and challenges of being self employed. Some of these are universal small business risks, while others are specific to the type of work you do.
Self-employed small business insurance typically includes:
General Liability Insurance
General liability insurance is the first type of insurance most self-employed business owners get.
Often called slip and fall insurance, general liability covers situations where your business may be responsible for an accident that injured someone or damaged property that doesn’t belong to you.
In many industries, you can’t get hired or start jobs without providing a certificate of insurance that shows active general liability coverage for your business.
Learn more about general liability insurance.
Workers’ Compensation insurance
Workers’ compensation insurance is almost always required if you have employees. But it can also cover your medical expenses and lost wages if you are self-employed with no employees.
Just make sure you have business owner’s coverage included in your policy.
Learn more about workers’ compensation insurance.
Commercial Auto insurance
If you’re doing anything other than making the occasional coffee run, you might not be covered by your personal auto policy if you drive for business reasons.
Commercial auto insurance can help cover expenses if you get into an accident while driving to meet clients, drop off equipment, make deliveries and a variety of other tasks you might be doing behind the wheel during your workday.
Learn more about commercial auto insurance.
Commercial Property insurance
Commercial property insurance covers all of the physical items you need to do business — your equipment, furniture, inventory and even the building itself (if you own it).
When you have commercial property insurance, you’ll have help replacing your stuff or repairing your damaged building after a covered event, such as a burst water pipe, fire, tornado or vandalism.
Learn more about commercial property insurance.
Professional Liability insurance (E&O insurance)
You’ve probably heard tales of an angry customer who turns a minor disagreement into a full-blown legal battle. It happens in almost every line of work.
If you’re accused of making a mistake or being negligent, professional liability insurance (often called errors and omissions insurance) can help cover expenses if you have to go to court or pay to fix a problem.
Learn more about professional liability insurance.
How much does business insurance for the self employed cost?
So how can you find cheap self employed business insurance? The cost associated with this type of entrepreneurship varies, depending on the kinds of risks your business faces. Some of these risks can include:
- How many vehicles you use for work
- Where your business is located
- What kind of work you do
- How long you’ve been in business
- Your claims history
- How high you set your coverage limits
- If you have or are going to hire any employees
The exact price you’ll pay depends on all these factors. Bear in mind that, in general, jobs that include working on other people’s property often have higher insurance costs.
NEXT calculates your premium (that is, your insurance costs) by taking into consideration all of the factors listed above, such as the likelihood that you’ll make a claim and how many vehicles you have.
Note: It’s important to provide the most accurate information about your business when you get a quote for insurance to make sure you get the coverage that is right for you and any claims are processed without delays.
How to find affordable self-employed business insurance
Here are a few tips to help find insurance coverage for self-employed business owners:
Shop around
Comparison shopping for business insurance is similar to how you shop for your personal insurance. Get self-employed business insurance quotes on a regular basis and be sure you are comparing apples to apples when it comes to premiums and deductibles.
Ask for recommendations
Your friends, family and other business owners are great resources for recommendations about specific insurers. If you belong to an industry group or even the local Chamber of Commerce it can be helpful to check with them about which insurers offer local businesses a discount.
Do your due diligence
While cheap insurance may seem like a good idea, a policy is no longer a bargain if you can’t get someone to answer your questions or get a claim paid. Research any insurers you are considering and make sure they are financially sound and have good reviews for customer service.
How NEXT helps the self employed?
We get it. You’re busy juggling a hundred different tasks every day to keep your business going.
NEXT makes small business insurance simple, affordable and easy so you can understand your options and get the coverage you need online in less than 10 minutes.
Since we only help small business owners like you, we can create a customized insurance package tailored to your exact needs.
Everything is online, so you can get an instant quote, review options and buy coverage in less than 10 minutes. You’ll have immediate 24/7 access to your certificate of insurance (COI) as soon as you buy your insurance.
Get an instant quote today to get started.
Customer reviews
I am so excited
I am totally excited about my new insurance for my small business. I am happy that the price was in a range that I can afford, the terms were easy to understand and it was so simple to purchase my first policy. I look forward to doing business with you in the future.
Curzella J.
Easiest insurance purchase – EVER!
I was looking around trying to compare insurance and I am so lucky I found NEXT. I was able to compare levels of coverage, and all the options, without pressure from a salesperson or time limits. I was able to check out prices and it was more coverage for less than the “traditional” company I looked at.
Michael W.
Happy small business owner!
I needed liability insurance for my new small business brick & mortar location. I got the run around from another company, but NEXT provided a competitive insurance quote in a timely manner. I now have the insurance that I need and it was stress-free!
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