We caught up with Money Mate the new product and service provider of telecoms, home insurance and broadband who offers incredible incentives and rewards to loyal customers. They gave us an insight into the best selling self employed insurance policies.
If you are self-employed you are unlikely to have access to the type of benefits that employees of companies often get. If the unforeseen happens and you are unable to work because of sickness an accident, or any other reason, your income may stop coming in but the bills won’t. Fortunately there are self-employed insurance policies that can protect you against a variety of risks.
1. Income protection
Designed to replace your regular income if you are sick or injured, this type of insurance will provide you with monthly payouts. These are usually for a period of one year although it can potentially be for longer periods. Most policies stipulate a waiting period before they begin paying out and, similar to raising the excess on home insurance policies, if you extend this waiting period you will bring down the cost of premiums. Many self-employed people built up a savings pot to tide them over initially and then extend the waiting period, thus reducing the cost of the policy.
2. Critical illness cover
As the name suggests, this type of protection covers major illnesses like cancer, heart attacks or other debilitating illnesses. Is one of the most popular of the self-employed insurance policies, generally pays out as a lump sum and is designed to offset major debts, such as your mortgage. Only specific conditions are covered however and policies won’t protect against being off work because of stress, depression or musculoskeletal problems like bad backs.
3. Life insurance
If the unthinkable happens and you were to pass away this type of policy will provide your dependants with a lump sum or regular payments. It is recommended for those who have children or other dependants and in many cases a joint policy covering both partners is advisable. People often think only of protecting against the demise of a breadwinner. However, if the other party were to pass away extra costs such as childcare would likely be incurred and a life insurance policy can ease the financial burden in such cases.
4. Business buildings insurance
The old saying about your home being your castle is doubly true when you run a business from home. You can take out an insurance policy that will cover your home for business and personal use so that you are protected in the event of floor or fire or other damages. It is worth noting that personal belongings are not covered under business building insurance.
5. Public liability insurance
Self-employed people can be liable for any damage or injury caused by their business activities, either in their premises or in a client’s. If you have clients or suppliers who visit your business, even home-based businesses, or you work from a customer’s property or premises, then you should take out insurance. This will cover trips, falls or other injuries arising out of business activities. However, it does not cover you or your employees.
6. Professional indemnity
If any clients make claims against you because they are dissatisfied with the quality of your work it can be an expensive business. Even if you are blameless you may have to defend yourself in the courts, which could mean hiring professional representation, racking up costs. Typical occupations that take out professional indemnity cover include architects, accountants, journalists, or consultants.
7. Employer’s liability
If you employ any staff, by law you must have insurance to protect them. Generally, if you are hiring freelancers on an ad hoc basis these will not count as employees and there are also possible exceptions where family members are concerned.
