Types of Insurance Self-Employed People Need PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Types of Insurance Self-Employed People Need

The post Types of Insurance Self-Employed People Need by Robyn Latchman, CFP, CLU, EPC appeared first on Benzinga. Visit Benzinga to get more great content like this.

As a self-employed person, you take on responsibilities not only related to the services or products you sell but also for every aspect of running a business. Business insurance covers your day-to-day business operations. What are four types of essential business insurance every self-employed person should consider?

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#1 Commercial general liability: Coverage for claims of third-party property damage and bodily injury caused by your business resulting from negligence or unexpected accidents protect your business. Commercial general liability insurance can include things like injuries or damages to a third party that occurred from your business operations; property or bodily injury caused by a product you sell or supply; allegations of defamation, slander or false advertising; or the cost to repair or replace a property that you are renting or occupy. 

#2 General liability: General liability insurance is coverage that protects against claims for which you and your company could be found liable. For example, if someone gets hurt in your office or spills the paint sample you are showing them on your antique area rug, your general liability policy could help.

#3 Professional liability (Errors and Omissions): Professional liability insurance offers financial protection for alleged negligence or failure to deliver a service as promised. It typically includes coverage for legal costs and damages related to professional services, media, advertising and products that are faulty or cause injury. Professional liability covers lawsuits alleging neglect, misconduct or failure to deliver services as promised, and general liability covers third-party property damage or bodily injury.

#4 Cyber liability: Cyber attacks, data breaches and computer hacks wreak havoc on businesses. Cyber liability insurance covers business systems that are hacked, system repairs and lawsuits. A full cybercrime policy would cover things like loss of funds from cyberattacks, including phishing, hacking, social engineering, data restoration and legal expenses.The main difference between a data breach and a cyber attack is who is covered for the act. In a data breach, the only coverage is for your business. In a cyber attack, your business and others who are affected are covered by the policy. 

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Next Business Insurance Next Business Insurance
get started
securely through Next Business Insurance’s website

Same Day Coverage?

N/A
Online Application?

Yes
1 Minute Review

NEXT is a business insurance provider dedicated to helping small business owners find affordable, customized policies that fit the unique risks of their industry. NEXT offers a complete suite of the most common business insurance protections that you might need, and you can apply for a policy entirely online.

Getting insurance through NEXT takes less than 10 minutes — simply choose your business type, answer a few questions about your experience and history and purchase coverage. You can adjust your policies and coverage limits to balance cost and protections with just a few clicks. 

Though NEXT’s 100% online model might not be right for everyone, it can be a strong contender for digital natives in search of affordable insurance. 

Best For

  • Small business owners looking for quick, affordable coverage available online
Pros

  • Apply for a policy in as little as 10 minutes
  • Policies customized to industry type and need
  • Discounts available on bundled policies
Cons

  • No option for paper policy application
  • May need to connect with a representative if your occupation isn’t listed
coverwallet coverwallet
get started
securely through coverwallet’s website

Same Day Coverage?

No
Online Application?

Yes
1 Minute Review

Shopping for business insurance can be a tedious process. It takes time to collect and review quotes and coverage unless you visit CoverWallet. CoverWallet, an Aon company, makes it easy to get quotes from multiple insurance providers.

With CoverWallet, you can start by talking with an insurance advisor or start directly with quotes. You can get quotes from multiple reputable insurers, including Hiscox, Chubb and Progressive. Choose from a wide range of coverage options to protect every area of your business, including workers’ compensation, general liability and commercial property insurance.

Once you decide on your insurance coverage, you can manage your policies through MyCoverWallet. This online dashboard allows you to send copies of your insurance certificates when needed, file claims and pay premiums. It keeps your policies organized and allows you to reach out to an expert at any time.

CoverWallet also offers extensive educational resources. You can review its recommended coverage by industry. You can also dig into more specific information based on your industry, location, number of employees and annual revenue.

The one drawback to the CoverWallet is that it doesn’t have a mobile app. You can still access the site through your mobile browser and you can call any time for assistance. Overall, CoverWallet makes it easy to shop for and buy business insurance, and it’s an excellent fit for small businesses and the self-employed.

Best For

  • Self-employed
  • Start ups
  • Small to medium businesses
Pros

  • Can get multiple quotes easily
  • Can learn about recommended insurance for your industry
  • Offers many types of insurance
Cons

  • No mobile app
B2Z B2Z
Get Started
securely through B2Z’s website

Disclosure: B2Z is available in the following states: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, lowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Carolina, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin.
Same Day Coverage?

N/A
Online Application?

Yes
1 Minute Review

Tired of buying insurance for your small business the old-fashioned way? Forget about waiting around for that insurance agent to call you back. Now, B2Z has launched a full suite of insurance policies, including cyber insurance, workers’ compensation, professional liability and business owner’s policies (BOP). The B2Z platform uses AI to create personalized coverage just for you—all in as little as 5 minutes.

B2Z offers small business insurance in a language everyone understands. Easy applications, mobile claims and digital quotes are just a few of the ways B2Z makes buying insurance for your business fast and easy. Affordable, too.

Best For

  • One-Stop-Shop Coverage
  • Shopping Online
  • Hassle-Free Cancelation for Old Policy
Pros

  • User-friendly online portal
  • Multiple products
  • Digitally-based
  • AI-driven
  • Data sourcing
Cons

  • No phone call needed
  • No brick and mortar
  • Too fast-paced for some
The Hartford The Hartford
get started
securely through The Hartford’s website

Same Day Coverage?

Yes
Online Application?

Yes
1 Minute Review

The Hartford is a leader in casualty and property insurance. It brings more than 200 years of experience in developing and providing insurance products. The company uses a quote-based pricing scheme to offer insurance in 2 main segments: commercial and personal lines. 

Its commercial segment serves over 1 million small businesses. The personal segment offers only nationally-endorsed home and auto insurance through the AARP® Insurance Program. The Hartford sells its products mainly through a network of independent brokers and agents. 

The company is also a 12-time honoree for the world’s most ethical companies according to The Ethisphere Institute. It delivers the name recognition and reputation of an experienced insurance carrier.

Best For

  • Those looking for an experienced insurance provider
  • Multiple coverage options with 1 carrier
Pros

  • More than 200 years of insurance experience
  • Provides online quotes
  • Has a solid financial rating
  • Offers a wide range of commercial insurance products
Cons

  • Pricing is entirely quote-based
Simply Business Simply Business
Get started
securely through Simply Business’s website

Same Day Coverage?

Yes
Online Application?

Yes
1 Minute Review

When you’re a small business owner, you have a lot on your plate. Finding the best insurance policies for your business probably isn’t on the top of your list. Simply Business makes it easy to get the coverage you need. It’s a digital small business insurance agency, which means it offers coverage from multiple insurance carriers. 

With Simply Business you can compare quotes and coverage options from multiple companies to determine what’s best for you. Simply Business works with top providers like Hiscox, Travelers and Axis Insurance Company. 

You can get policy options online in less than 10 minutes, and if you need more guidance or have questions, its licensed agents are just a phone call away. 

Simply Business is a great fit for small businesses and sole proprietors. You can look at its recommended insurance options based on the type of work you do, whether it’s landscaping, accounting or photography. 

While Simply Business doesn’t handle your claim directly (the provider you decide to purchase from does), it’s there to help you if you run into any issues. It can get you new copies of your policy documents and help you get in touch with your provider if you need assistance. 

If reviewing or buying business insurance has been on your to-do list, Simply Business is an excellent place to start. You can get a quote while you take a coffee break. 

Best For

  • Small business owners
  • Sole proprietors
Pros

  • Quick quote process
  • Licensed agents to assist you
  • Can choose from top insurance providers
Cons

  • No mobile app
Thimble Business Insurance Thimble Business Insurance
get started
securely through Thimble Business Insurance’s website

Same Day Coverage?

Yes
Online Application?

Yes
1 Minute Review

It’s not often that you see something new in the insurance space but Thimble has come up with something unique — flexible small business insurance. You can buy liability insurance policies by the month, the day or even by the hour. Even better, you can apply in under 60 seconds. In this Thimble review, we’ll dive into how it works and how it can benefit your business. 

Best For

  • Handymen, landscapers and contractors
  • Self-employed individuals
  • Seasonal business owners
  • Freelancers who do multiple types of work
Pros

  • Flexible general liability and professional liability policy options
  • Fast application process
  • Ability to pause monthly coverage
  • High-quality mobile apps
Cons

  • No 24/7 Customer Support

Are You Required to Carry Health Insurance if Self Employed?

As a self-employed person, you are not required to carry health insurance. You can buy a private healthcare insurance plan or sign up for an Affordable Care Act Marketplace plan. Other types of healthcare insurance could benefit you as a self-employed person.

#1: Accident insurance: This type of coverage protects you in case of an accident. Different options are available; for example, your accident coverage could start paying at 7 days and your illness coverage starting at 90 days. The longer the waiting period the lower the premiums are.  

#2: Disability insurance: This policy replaces a certain portion of your after-tax income if you become disabled or unable to work full-time or part-time. It may pay for a short- or long-term period depending on the definitions in the policy wording. Other policies available can cover your fixed business expenses such as rent, advertising costs and loans.

Contracts vary in the premium amounts you would pay for your policy. Premiums are based on occupational classes, your health, your job, age, riders you choose and the income you are protecting. Insurance companies don’t always calculate your income the same way and don’t use the same definitions. 

#3: Critical illness insurance: If you as a self-employed person purchase this type of policy, you would receive a cash payout from the insurance company in the event of a covered illness. Several types of policies are in the marketplace and like disability insurance, you choose what would work best for you to collect on the policy. Critical illness insurance represents a good way for your business to assist with the unexpected bills and your regular monthly expenses.  

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Best For

Member support

N/A
1 Minute Review

In the past, Aetna health insurance plans were available on Affordable Care Act (ACA) Marketplaces across the country. Though Aetna no longer offers ACA-compliant plans, the company continues to make healthcare more affordable through Medicare Advantage Part D coverage and dental insurance plans.

Aetna’s Medicare options extend to most parts of the country, and premiums for Advantage plans begin at $0 a month. Part D coverage, which helps pay for prescription drugs, begins at about $7 a month in most states. Additionally, Aetna offers dental insurance and dental discount plan options that anyone who doesn’t have dental coverage through their employer can take advantage of. In addition, Aetna also offers a number of additional benefits not seen with other coverage providers, including discounts on prescription drugs and rewards for meeting health goals. 

 

Best For

  • Member support
Pros

  • Offers multiple mobile app offerings to reward you for reaching fitness goals
  • Dental discount plans may include coverage for prescription drugs
  • Medicare Advantage plans available with no monthly premiums
Cons

  • Vision insurance only available when purchased with a dental plan
  • ACA-compliant health insurance no longer available
get started
Call Now
securely through Blue Cross Blue Shield’s website

Best For

Nationwide coverage

N/A
1 Minute Review

Blue Cross Blue Shield consists of 35 separate companies that provide health insurance for roughly one-third of Americans. The company serves all 50 states, Washington D.C., Puerto Rico, and many international areas.

While you look into the BCBS affiliates near you, understand what health plans are available as well as the health insurance cost. It offers extensive coverage that gives just about every American the opportunity to purchase a BCBS-affiliated health plan. However, be sure to read up on the company because the premiums and deductibles may not suit you and your circumstances. 

Best For

  • Desire for a new doctor with plenty of options
  • No cap on annual maximum limits
  • Comprehensive coverage with exclusive discounts and partnerships
Pros

  • Coverage in all 50 states and outside the country
  • Covers both generic and brand-name drugs
  • Wide network of doctors, hospitals and specialists
Cons

  • Plans offered through regional companies, meaning you must look to your regional company for specific policies
  • Main customer service helpline may be difficult to reach
Best For

Pharmacy programs

N/A
1 Minute Review

Cigna Health Insurance offers low-cost private health insurance and Medicare Advantage and Supplement Plans for families and individuals. Founded in 1982 and based in Bloomfield, Connecticut, the company offers a wide array of health insurance plans including three Bronze plans, four Silver and one Gold. All Cigna plans are EPO plans, meaning they are all in-network. Free telehealth visits come with every plan and are available to customers 24/7.

The four-metal tier coverage plans include:

  • Bronze
  • Expanded bronze
  • Silver
  • Gold

Individual and family Cigna private insurance plans are all available on the Marketplace and through the Cigna website, as well as with licensed agents in each state. Because they are sold through the Marketplace, they can only be purchased during your state’s open enrollment period. Special enrollment periods apply for special circumstances.

Best For

  • Easy access to benefits
  • Pharmacy programs
  • Savings and spending accounts such as HSA and FSA
  • Supplemental plans
Pros

  • Home delivery for prescriptions
  • Health management mobile apps
  • Easy ID card replacement
Cons

  • Potentially high deductibles
  • Not available in all 50 states
Best For

Same day coverage available

N/A
1 Minute Review

UnitedHealthcare is an insurance company that is dedicated to making the health care system work better for everyone. Its plans can serve customers of all ages, starting in childhood and continuing all the way through the retirement years. The company partners with more than 1.3 million health care professionals and over 6,500 hospitals to give customers the freedom to access healthcare wherever they are. This insurance provider has a strong financial standing and good ratings, making it a reliable option for just about anybody.

Best For

  • People who want flexibility in their health care coverage
  • People who want supplemental insurance coverage
  • People who qualify for both Medicare and Medicaid
Pros

  • Offers a wide variety of plans
  • Strong financial and customer service ratings
  • ACA and non ACA plans available
Cons

  • Not all plans ACA-compliant
  • The website can make it difficult to get a quote

Do At-Home Business Owners Need Commercial Insurance?

What would happen if you were a wedding photographer, and your job was complete you went to your office to drop everything off and you went back out to run some errands and came back a couple hours later to find out that your home office was broken into? In a case like this, your business would benefit from having standard business insurance policies in place.

Connecting with an insurance broker who deals with several insurance companies can be advantageous so they can help you choose what policies work best for your type of industry.

Risk Factors for the Self-Employed

When you work for yourself, you gain the benefits of being the boss. However, all the risks that come with being a business owner also fall on you.

#1 Missing out on retirement savings: Have you been concerned about missing out on the benefits of company retirement plans? Self-employed individuals have access to plans they can set up on their own; the three main options include the SEP-IRA, Solo 401(k) and SIMPLE IRA. Each of these has its advantages and disadvantages. 

#2 Not paying estimated income taxes and Federal Insurance Contributions Act (FICA) taxes: As a self-employed worker, you need to keep track of and file federal and state income taxes as well as your Medicare and Social Security contributions. As an independent worker, you need to submit both the employee’s and employer’s portions. 

#3 Skipping life insurance: Life insurance for the self-employed is important for several reasons. If you die prematurely, debts from starting up your business can mount. If you are married, your partner might need to hire someone to take your place to finish up projects that have been started. You might have children and inadequate or no personal life insurance to cover your mortgage, college tuition or funeral expenses. Life insurance can be inexpensive if you choose a term policy. 

#5 Going it alone: As a sole proprietor, working independently is the norm. No one supervises your work and keeps you motivated. 

Frequently Asked Questions

Q

What is self-employment tax?

1
What is self-employment tax?
asked 2022-03-29
Robyn Latchman, CFP, CLU, EPC
A
1

The U.S. government imposes Medicare and Social Security taxes on wages earned. The self-employment tax rate is 15.3% and consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance). When you work for an employer and earn W2 wages, the employer pays half of the tax and you pay the other, which is deducted from your paycheck and sent in by your employer. When you work for yourself, you have to pay the whole amount and send it to the IRS yourself

Answer Link

answered 2022-03-29
Benzinga
Q

Can you deduct life insurance premiums as a business expense?

1
Can you deduct life insurance premiums as a business expense?
asked 2022-03-29
Robyn Latchman, CFP, CLU, EPC
A
1

Although you can deduct many expenses as a self-employed business owner, including healthcare insurance premiums and general liability insurance premiums, the cost of regular life insurance premiums are usually not deductible. Premiums for certain special types of business insurance like key person life insurance and buy-sell agreements may be deductible, but standard life insurance premiums usually are not.

Answer Link

answered 2022-03-29
Benzinga

The post Types of Insurance Self-Employed People Need by Robyn Latchman, CFP, CLU, EPC appeared first on Benzinga. Visit Benzinga to get more great content like this.

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