Self employment can be rewarding and challenging. It offers freedom and flexibility, but requires additional responsibilities and risks. When self-employed, it’s important to make sure you have the right insurance coverage to protect your health, income, assets, and business.
As an independent insurance broker, I occasionally see self-employed individuals looking for insurance. There are a variety of insurance options available, like health, life, disability, property, casualty, and business insurance. This can make the search for the best insurance plans overwhelming.
In this article, we will discuss the types of insurance to consider, factors to consider when choosing insurance, the top insurance options available, and provide tips for purchasing insurance. Let’s get started!
Table of contents
The Best Insurance Options By Type
As a self-employed individual, you wear many hats and carry a lot of responsibility. Shield yourself from unexpected events by investing in insurance policies such as professional liability insurance, individual health insurance, and business property insurance.
Don’t leave your financial security to chance. Consider these insurances to give yourself peace of mind and financial protection as a self-employed person.
Learn Tips to Save Money on Insurance!
Our newsletter is packed with helpful tips and resources to help you save money and get the most out of your coverage. Sign up now and join our community of savvy insurance consumers.
Health Insurance
Health insurance is an important type of insurance for self-employed individuals, as it helps cover the costs of medical care, including doctor’s visits, prescription drugs, and hospital stays. There are a variety of health insurance options available for self-employed individuals, including individual health insurance plans, group health insurance plans, and short-term health insurance plans.
It’s important to carefully research and compare the various options available to determine the best coverage for your needs and budget. Here is a table that lists some of the best health insurance companies for self-employed people:
| Company | Pros | Cons |
|---|---|---|
| Blue Cross Blue Shield | Nationwide network of providers, customizable plans, strong financial stability | Limited choices in some states |
| United Health Care | Large network of providers, wellness programs and discounts, virtual care options | Higher premiums than some competitors, limited coverage in some states |
| Aetna | Customizable plans, telehealth options, wellness programs | Limited choices in some states |
| Cigna | Wide network of providers, global coverage, wellness programs | Higher premiums than some competitors, limited transparency in pricing |
| Oscar Health | Tech-forward approach, personalized care, focus on preventive health | Limited network of providers in some states, higher out-of-pocket costs in some plans |
Note: The best health insurance company for a self-employed person will vary based on individual needs, preferences, and location. It is important to compare several options and consider factors such as network of providers, cost, and benefits before choosing a health insurance plan.
Life Insurance
Life insurance provides financial protection for your loved ones in case of your unexpected death. As a self-employed individual, you may not have the same life insurance benefits as someone who is employed by a company, so it’s important to consider purchasing a life insurance policy to protect your family’s financial future.
There are various types of life insurance policies available, including term life insurance, whole life insurance, and universal life insurance and here are some companies that do a great job at helping self-employed people!
| Company | Pros | Cons |
|---|---|---|
| Mutual of Omaha | Customizable policies, competitive pricing, flexible underwriting | Limited product offerings, underwriting may be more strict compared to other companies |
| North American Company for Life and Health Insurance | Offers policies with no medical exam, strong financial ratings, affordable premiums | Limited coverage options, underwriting can be strict for high-risk applicants |
| Pacific Life | Offers policies for self-employed individuals and small business owners, strong financial ratings, competitive pricing | Limited policy options, underwriting process can be lengthy |
| Protective Life | Wide range of policy options, competitive pricing, strong financial ratings | Underwriting process can be strict, customer service may be inconsistent |
| Prudential | Strong financial ratings, wide range of policy options, offers policies for self-employed individuals and small business owners | Pricing can be higher compared to other companies, underwriting process may be lengthy |
Disability Insurance
Disability insurance provides financial protection in case you become disabled and are unable to work. This can be particularly important for self-employed individuals, as you may not have the same disability benefits as someone who is employed by a company. Disability insurance can help cover your living expenses and protect your income if you are unable to work due to a disability.
| Company | Pros | Cons |
|---|---|---|
| Unum | Offers a wide range of coverage options, strong financial stability, excellent customer service | Underwriting process can be strict, benefits may be lower compared to other companies |
| The Hartford | Offers a wide range of coverage options, competitive pricing, strong financial stability | Underwriting process can be lengthy, customer service may be inconsistent |
| New York Life | Offers policies for self-employed individuals and small business owners, strong financial stability, competitive pricing | Limited policy options, underwriting process can be strict |
| Mass Mutual | Offers customizable policies, competitive pricing, strong financial stability | Limited policy options, underwriting process can be strict |
| Guardian Life | Offers a wide range of coverage options, competitive pricing, strong financial stability | Underwriting process can be lengthy, customer service may be inconsistent |
Property And Casualty Insurance
Property and casualty insurance covers your assets and protects you from liability in case of damage to your property or injuries to others. As a self-employed individual, you may have more assets to protect and more liability exposure than someone who is employed by a company.
Property and casualty insurance can help cover the costs of damage to your home, car, or other personal property, as well as injuries to others that may be caused by you or your business.
| Company | Pros | Cons |
|---|---|---|
| State Farm | Offers a wide range of insurance options, competitive pricing, excellent customer service | May not have the most cutting-edge technology, underwriting process can be lengthy |
| Allstate | Offers a wide range of insurance options, competitive pricing, strong financial stability | Customer service can be inconsistent, underwriting process can be strict |
| Geico | Offers competitive pricing, excellent customer service, user-friendly technology | Limited coverage options, underwriting process can be strict |
| USAA | Offers insurance options for military families and veterans, competitive pricing, excellent customer service | Only available to military members and their families, underwriting process can be strict |
| Farmers | Offers a wide range of insurance options, competitive pricing, strong financial stability | Customer service can be inconsistent, underwriting process can be lengthy |
Business Insurance
Business insurance is a type of insurance that protects your business from financial losses due to unexpected events or accidents. Business insurance can be particularly important for self-employed individuals, as you may not have the same protections as a larger company. Business insurance can help cover the costs of damage to your business property, loss of income, and liability for accidents or injuries related to your business.
| Company | Pros | Cons |
|---|---|---|
| Hiscox | Offers customizable insurance options, competitive pricing, user-friendly technology | Limited coverage options in some states, underwriting process can be strict |
| The Hartford | Offers a wide range of insurance options, competitive pricing, strong financial stability | Customer service may be inconsistent, underwriting process can be lengthy |
| Nationwide | Offers a wide range of insurance options, competitive pricing, strong financial stability | Customer service may be inconsistent, underwriting process can be strict |
| Chubb | Offers high-limit liability insurance, strong financial stability, excellent customer service | Pricing can be higher compared to other companies, underwriting process can be lengthy |
| AIG | Offers a wide range of insurance options, strong financial stability, excellent customer service | Pricing can be higher compared to other companies, underwriting process can be strict |
Factors To Consider When Choosing A Policy
As an insurance agent, I always try to help my clients choose the best plan at the best price possible. To do this, we first have to make sure we choose the right policy.
So many things come into consideration when choosing the right insurance, especially when your are self-employed (because you have to make all of the decisions yourself without an employer telling you what to do).
- Coverage Limits And Exclusions: When comparing insurance policies, it’s important to carefully review the coverage limits and exclusions to make sure the policy meets your needs. Pay particular attention to the maximum amount that the policy will pay out in the event of a claim, as well as any exclusions that may limit the coverage. For example, some health insurance policies may exclude coverage for certain medical conditions or treatments.
- Cost And Affordability: It’s also important to consider the cost and affordability of the insurance policy. Look for a policy that provides good value for money and fits within your budget. Keep in mind that cheaper policies may have lower coverage limits or more exclusions, so it’s important to balance cost with the level of protection you need.
- Reputation And Financial Stability Of The Insurer: It’s important to consider the reputation and financial stability of the insurance company. Look for a company with a good track record and a solid financial foundation, as this can give you confidence that the company will be able to pay out claims in the event that you need to make one. You can check the ratings and reviews of the company online, or ask for recommendations from friends, family, or a trusted insurance broker.
- Policy Discounts And Benefits For Self-Employed Individuals: Many insurance companies offer discounts and benefits for self-employed individuals, such as discounts for purchasing multiple policies or for purchasing a policy within a certain time frame. It’s a good idea to ask about these discounts and benefits when comparing quotes, as they can help lower your premiums.
Tips For Purchasing Insurance
Throughout my career as an insurance professional, I have picked up some tips to help you make sure you can get the best plan, the most coverage, and a price that suits your budget.
- Determine Your Insurance Needs: To get the best insurance coverage for your needs as a self-employed individual, it’s important to determine your insurance needs. Consider your financial situation, assets, and liability exposure, as well as any specific risks or vulnerabilities that may be related to your business. This will help you determine the types of insurance you need and the coverage limits that are appropriate for your situation.
- Compare Quotes And Select The Best Policy: To get the best deal on insurance, it’s important to compare quotes from multiple providers. Look for a policy that provides good coverage at an affordable price. Keep in mind that cheaper policies may have lower coverage limits or more exclusions, so it’s important to balance cost with the level of protection you need.
- Negotiate Discounts And Lower Premiums: Many insurance companies offer discounts and benefits for self-employed individuals, such as discounts for purchasing multiple policies or for purchasing a policy within a certain time frame. It’s a good idea to ask about these discounts and benefits when comparing quotes, as they can help lower your premiums. You can also negotiate with the insurer to try to secure a lower premium by demonstrating your responsible ownership habits or by agreeing to a higher deductible.
- Familiarize Yourself With The Claims Process: It’s also a good idea to familiarize yourself with the claims process before you purchase insurance. Make sure you know how to make a claim and what documentation you will need to provide.
- Keep A Copy Of The Policy With You: Make sure to keep a copy of your insurance policy with you, as well as any supporting documents such as receipts or proof of purchase. This can make it easier to make a claim if you need to.
Conclusion
I know that self-employed individuals should seek out insurance to protect their health, income, assets, and business from financial losses. There are a variety of opinions available, so it is important that you do your research to make sure you purchase the plan that is right for you.
When you work for yourself and don’t have an employer to give you insurance, it’s even more important to make sure you have enough money to pay for it and that it covers everything you need. There are lots of companies that offer different insurance, but it can be tough to pick the right one.
Be sure to consider the factors and tips outlined in this article when purchasing your insurance policy to make sure you are making the best decision for your needs. Take your time, compare every quote you get against the last, and you’ll be able to make an informed decision in no time!
