Protecting Yourself and Your BusinessWhat Type of Insurance Do You Need?
These are the types of insurance you need to consider. The first two types of insurance are typically offered by organizations as part of a benefits package to employees and should be considered by everyone who works:
- Health Insurance. Coverage options for routine care to extraordinary costs of medical treatment.
- Long Term Disability. If you’re unable to work for more than a specified time, generally 60 or 90 days, you will receive regular payments while disabled.
The following insurance types are for businesses. Which type you may need depends on your business structure and the state in which you work.
- Errors and Omissions (E&O), sometimes known as professional liability. This protects you against financial losses from lawsuits filed against you by your clients.
- General liability. General coverage for your business.
- Workers compensation. If you are disabled while working and would claim disability income from your state.
This is additional insurance that should be considered by independent consultants:
- Umbrella, or riders. Extra coverage for your business if you work out of your home. It “kicks in” when you reach the limits of general liability or auto insurance.
- Automobile insurance. Depending on your state and business type, insurance to cover you as you drive to and from a client’s site.