What Type Of Insurance Coverage Does A Self-Employed Person Need?

​If you're self-employed, you know that it's important to have the right insurance coverage. And if you're not sure what type of coverage you need, don't worry because this post will discuss the different types of coverage self-employed people should consider. You’ll also know some tips on finding the best policy for your needs. So, keep on reading!

Who Qualifies As Self-Employed? 
As defined by the Internal Revenue Service, a person who identifies as self-employed has to meet these conditions:

1. Run an independent business as a sole trader or independent agent.
2. Be part of a company that operates a trade.
3. Run your trade, even if it's part-time.

What Falls Under Basic Self-Employed Coverage Plans?
Ideally, your self-employed insurance coverage should include a plan inclusive of various issues, from legal costs to income-related matters and company property.

When drawing up a plan, consider starting with a BOP (business owners policy) which combines three main coverages, making your overall premiums cheaper. 

A BOP includes the following:

Commercial Liability Coverage
This includes damages to property or any physical harm incurred by anyone (except for employees) or any lawsuits you might get in an accident.

Production Interruption Coverage
You'll be covered for any lost income if there's an interruption or you're forced to close down, e.g., from a fire. This should also cover the costs of temporarily relocating.

Business Property Insurance
You'll also need to ensure your machinery and equipment, which will be replaced if the damage is from a covered cause.

Conclusion 
Even after breaking off from the usual nine to five and starting your own business, you'll still need to get a coverage policy for your new venture. Not all businesses are built the same and need specific types of covers. Hopefully, this guide helped you better understand how to choose the best type of self-employed business insurance coverage plan.

At McClain Matthews Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (317) 298-7500. Get your free quote today by CLICKING HERE. Any coverage discussed is not guaranteed. Please contact us today to go over your policy to ensure your needs are met! We are here and happy to help.