Self-employed vs. independent contractor: What’s the difference?
Although there are many similarities and overlaps, these two terms are not used interchangeably due to differences in laws between states, differences between industries and even an individual’s own mindset. Think of it like this: All independent contractors are self-employed, but not all self-employed individuals are independent contractors.
- Self-employed: A broad category of individuals who operate their own businesses or work independently.
- Independent contractors: A subset of self-employed individuals hired by another entity to perform specific tasks, projects or services under a contract but aren’t considered employees.
Types of insurance coverage for self-employed individuals
Self-employed individuals often wear multiple hats, and comprehensive insurance coverage is a cornerstone of their financial security. Here are some of the essential insurance coverages for self-employed workers:
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