Being self-employed may feel like a type of freedom; no boss looking over your shoulder, nobody to be responsible for and, if you are running your business from home, no office to look after. But with freedom comes responsibility, and you do need to consider that certain aspects of your new work life will need protecting for the future. Here’s a rundown of the types of insurance to consider when you are self-employed.
An annual salary offers a sense of stability — even if you are ill, you will be protected to an extent, but there’s no such built-in cover if you are self-employed as the responsibility for your income lies directly at your own door. What if you were injured or became ill? This is where income protection comes in; with the right insurance, you will receive a payout that will carry you over until you are able to return to your desk. But what if you are unable to return to work? It’s worth taking out a policy that covers you for serious illness as this will pay out a tax-free lump sum, should you be diagnosed with a condition that leaves you unable to work.
Many employers offer their employees life insurance as a work benefit, but the downside of being self-employed is that you will have to source and set this up yourself. This policy will usually pay your family a lump sum in the event of your death.
It’s natural to assume that your home insurance policy covers everything in your home, however, if you are running business from your home address, you will need to tell your insurer about this as certain aspects may not automatically be covered. Make sure you are honest as to the type of business you are running; for example, if it involves clients visiting you, you will need a public liability cover as well as equipment and contents.
Sound confusing? If you need advice as to which insurance policies are right for you and your business, speak to one of our experts today.
