Insurance for self-employed workers: the essentials

When you're self-employed, you wear many hats, not the least of which is Chief Risk Management Officer. Water damage, equipment failure or an injury to a client… an unexpected situation can put your activities on hold... or worse, empty your bank account. Here's an overview of the coverage you should consider for your business.

Your property

Computers, software, equipment, books, tools, supplies... working from home means that your home insurance will cover some of it. However, the coverage amount is usually capped at $2,000.

The question to ask yourself is this: is the coverage amount enough to replace all my equipment?

If the answer is no, then insurance designed for those who work from home can fill the gap.

Insurance for a home-based business

This insurance protects more than just office equipment. It includes:

• Professional liability covers against material damage or personal injury you may cause to a client, supplier or third party—a risk that your home insurance's civil liability provision does not cover.
• Loss of income or business interruption covers the financial losses and the cost of temporary relocation caused by water damage, a breakdown or an extreme weather event, for example.
• Accounts receivable, valuable documents, and professional fees covers losses that could disrupt your operations.

FYI, although it is possible to take out a standalone home-based business insurance policy, some insurers will requre that your add it is an endorsement to your home insurance policy with them.

Business insurance

If you work in an office, workshop or other commercial space, you will need to take out business insurance for self-employed workers.
In this situation, the insurer may impose certain requirements like:

• Alarm system connected to a central monitoring station
• Security fence
• Sprinklers or other prevention devices

The broker will assess several aspects of your business in order to provide the perfect coverage to protect your equipment, income and civil liability.

Every self-employed worker’s situation is different. The best way to get protection that's right for you is to talk to a L'Unique broker. They will assess your situation, compare options and get you the coverage you need to ensure your peace of mind.