Insurance 101 If You're Self-Employed

Being self-employed provides you with a number of perks you wouldn't otherwise enjoy if you were doing office work. Examples of these perks include setting your own work schedule, having the power to turn down projects, and being your own boss. Of course, there's a down side too. Since you're running your own business, you are also responsible for everything that happens to it, including paying the necessary taxes, registering the business, as well as securing it with the necessary insurance.

In this article, we will share with you a number of insurance products you might need if you're self-employed. You're not required to take out all of these products, but if you could, then you would provide you and your business ample amounts of protection. Ready? Let's get started with...

  1. Health insurance. Your employer would take care of this if you were an employee of a company. However, since you run your own business, the responsibility now rests on you. This is a basic type of insurance you need to have, so you can ensure that you will be covered in case you get sick or injured.
  2. Income protection insurance. Speaking of being sick or injured, this type of insurance will provide you with funds if you're unable to work because of your condition. In other words, you will continue to receive a salary even if you're not working. This then enables you to focus on your recovery and not worry about where you will get the money to pay for your bills and other expenses. As a self-employed individual, it's more ideal that you choose an agreed value policy. The reason for that is the value of your benefits will remain stable even if your income fluctuates.
  3. Business insurance. This is a bracket term for a number of insurance products that you could take out to help protect your business. These include income protection insurance, which we already mentioned above. Aside from that, you could also apply for business interruption insurance, which is designed to provide you with funds in case your office equipment gets damaged due to an accident, natural disaster, or fire. Or if you have an investment property, you should also consider getting mortgage protection insurance to prevent you from defaulting on your repayments when you find yourself in financial difficulty.

There are other insurance products that you may want to take out for your business, but the ones we listed above are usually enough to get you started. If you'd like more help in choosing the right type of insurance for your needs, contact our consultants at Rate Detective today. They will assess your needs and then provide you with rate comparisons of Australia's top insurance companies. Contact us today for more details!

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Published on July 7-th, 2013 in Insurance
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

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