Sunday, January 2, 2011

What kind of insurance should an indie have?

Hello June,

How are you? I'm glad to have found your site. It is a great asset to us indies.

I have one question I need to ask. I need indie insurance. How do I go about getting this insurance? Is this general liability insurance or something else?

Secondly, how much does sufficient indie insurance coverage cost? Thanks for your response in advance.


Happy New Year, Tameko!

I am pleased that my site is of value to you. Thanks.

Asking how much insurance costs is similar to asking how much will my taxes be? Many factors are part of the calculation.

It depends on the kind of insurance and how much insurance you want. For instance, a policy covering a home valued at $300,000 is probably going to cost less than a policy covering a home valued at $500,000. Liability coverage for a graphic designer who never meets with clients in her studio will be less than that for a massage therapist who actually touches the body.

Insurance covers different assets, liabilities and situations. For instance:

** Liability insurance generally covers injury to another person. For instance, if a client walks into my office and trips.

** Property insurance (often combined with liability insurance) covers damage to someone's property. For instance, you break a window while cleaning it.

** Errors and Omissions policies cover mistakes in your work that impact your client.

** Workers Compensation covers injury to an employee.

** Media Liability insurance will protect you against lawsuits over what you say in your publications.

** Health insurance covers medical costs.

** And the list goes on ... life ... disability ... long term care ...

I think taxes are easy. Insurance is difficult. Think about what you need protection from. Then start by having a conversation with the insurance agent who handles your auto or home or health insurance. He or she may be able to direct you to other insurance agents. Also check with local business organizations for recommendations. I do not recommend NASE -- the National Association for the Self-employed.

More of my posts on insurance are right here insurance .

Also, for those of you who do not subscribe to my eLetter, Ways Through The Maze check out this one #32 for info on the new rules on health insurance deductions for indies.

-- June

1 comment:

June Walker said...

From Tameko --

Happy New Year, Ms. Walker! Thank you for your response on indie insurance. Now the research begins to find the best coverage to fit my individual business needs. Thanks again for your time and feedback. I find your site helpful to those who are new to the indie business world which can be very different from the other side but the freedom makes up for it.

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