Lack of job opportunities and the desire for more freedom is pushing more people into self-employment. Control over career, as well as the flexibility of working hours and the opportunity to do what one loves, are some of the reasons why more people are quitting 9 to 5 jobs. Going solo does come with its fair share of risks, and one of the reasons why taking up some insurance coverage is essential.
Self-employed people need insurance to protect their businesses from unexpected adverse events that might affect day to day running, let alone threaten survival. Such insurance products protect the business as well as personnel involved in the business.
Whenever a customer falls in the store, an employee gets injured in the line of duty or damages to property; a business owner might be hit with lawsuits or medical bills. While this kind of incident can create enormous problems for business owners, insurance products would always come in handy and alleviate some of the burdens.
For this reason, a number of self-employment insurance products exist to protect people who decide to start their own business. These insurance products are designed to shield people from damages on the business premises as well as mitigate against some obvious risks such as loss of revenue or a key staff member.
The type of insurance product that one takes, while self-employed, depends on a number of things, they include:
- Whether one has shareholders or investors in the business
- Whether one has key members crucial to the survival of the business
- The type of assets one has critical to the day to day running of the business
- They type of business one is running and the types of products and services on offer
Below are some of the top insurance products that self-employed people should consider.
Building and Contents Insurance
Buildings and contents insurance is designed to protect a business owner when business premises or assets incur damages. The insurance product can protect self-employed persons against natural events that might damage the building or assets as well as theft. If you have a mortgage, then a lender might require cover in this case.
Keyman Insurance
Keyman insurance is an essential insurance policy for self-employed people that rely on a specific employee or employees for survival. Keyman insurance works by reducing the financial burden that might come about on a business losing personnel critical to its survival.
The insurance coverage payout would go a long way in covering the cost of hiring a replacement or covering up revenue loss. This is especially important if you have employees over the age of of 60.
Credit Insurance
Some businesses do issue credit to customers who purchase goods and services. Conversely, this type of insurance coverage seeks to cushion the business should a customer default on making payments on a credit issued.
The insurance products would especially come in handy whenever customers go bust and are unable to make payments on a line of credit. A business must generate free cash flow on the sale of goods and services to continue operating. Therefore credit insurance is essential in mitigating credit losses that might come about.
Employer Liability Insurance
Employer liability insurance is essential for businesses that employ people or contractors. This type of insurance protects a business against costs that might arise due to legal fees, or compensation should an employee incur work-related illnesses, injury, or become incapacitated in the line of duty.
Professional Liability Insurance
Professional liability insurance is vital if you are engaged in the business of offering advice and certain services. This type of insurance product is designed to shield people from compensation costs, and legal fees should a client incur financial losses due to a mistake made by you or people working for you.
Conclusion
Self-employed insurance products are crucial to the survival of any business whenever the unexpected happens. Such insurance products protect against obvious things such as damages to the business premises or loss of a Keyman crucial to the running of the business. Likewise, they mitigate against obvious risks such a credit loss or professional liability.