If you’re a freelancer, sole proprietor or an independent contractor, the right self-employed business insurance can help prepare you and your business for unexpected events.
An injury, an illness, an accident, weather damage or a lawsuit are just a few of the many business risks your small can face every day — and there’s no need to face them alone
Self-employed business insurance can be confusing, so we put together this guide — and this video — that breaks down the essential types.
These tips can help you get the right business insurance for the self-employed — at the right price:
Self-employed business insurance typically includes:
General liability insurance is the first type of business insurance many self-employed business owners buy.
While sometimes called “slip and fall insurance,” general liability usually covers situations if your business is found responsible for an accident that injured someone or damaged property that doesn’t belong to you.
In some professions, you can’t get hired or start jobs without providing a certificate of insurance that proves you have active general liability coverage for your business.
Commercial property insurance covers most of the physical things you need to do business — such as your equipment, furniture, inventory and the building structure that you own.
When you have property insurance, you may be able to get help replacing your stuff or repairing your damaged building after a covered event, such as a burst water pipe, fire or vandalism.
A business owner’s policy, also called a BOP insurance policy, combines all of the coverage of both general liability and commercial property insurance into a single, more efficient and comprehensive package.
The beauty of a BOP is that it can carry more protection than just a single policy. It can help cover damage that you or your employees may inadvertently cause to another person’s property, as well as bodily injury accidents that injure patrons or passersby to your business.
BOP keeps going to help protect your business inventory in the event of a fire or water damage or other covered event.
And its arms reach out to cover business income interruptions; advertising injury if you’re accused of infringing someone else’s copyright in your advertising, libel, or slander; and can provide a legal defense if you are sued. In short, a BOP can do a lot.
A lot of people think that you only need workers’ compensation insurance if you have employees.
The reality is, workers’ comp 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 with your policy.
Most states require this coverage as soon as you hire your first employee, so it’s important to know the rules where you work.
If you’re driving for business beyond the occasional coffee run, you might not be covered by your personal auto policy in the event of an accident.
Commercial auto insurance can help cover expenses if you have a collision or 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.
You’ve probably heard horror stories of an unruly customer who turns a minor disagreement into a full-blown legal battle. It can happen in almost every industry.
If you’re accused of making a professional mistake or being negligent, errors and omissions insurance may help cover the costs of defense if you are sued. In some industries, E&O coverage is known as professional liability insurance.
Depending on your industry, E&O or professional liability coverage might be included with your general liability policy.
We make small business insurance simple, affordable and easy so you can understand your options and get the coverage you need in less than 10 minutes.
Simply answer a few questions to get an online instant quote on an insurance package customized for your business.
If you have any questions, our licensed U.S. insurance advisors are ready to help.
Karen Solomon is a content marketing editor at NEXT. She has helped small business owners and startups as a writer, editor and content strategist for decades. When she's not slinging words, you can find her sailing, vintage shopping or doing things that dauschunds like to do.
