As a freelancer, you are responsible to take care of your own benefits and to make sure that your company is insured. A good independent insurance broker will shop around for the best coverage and pricing based on your specific needs for each type of policy. Going with a trusted provider, with a good track record of paying claims on time will be essential. And read the fine print so that you know what's included. Here are some of the major areas to work into your planning. The first is professional liability insurance. This protects the business in the invent that someone sues the company, directors and officers insurance. If you add some team in that area will protect the board directors, owners and executives in the event that a company has troubles. You may consider key person life insurance, what would happen to your business if you were to pass away. Key person life insurance provides a death benefit that can be used to take care of the business affairs, pay back any loans and have some cash to continue the business. While it might not be essential for a solopreneurs without any outstanding debt or family obligations, investors, partners and lenders may require you to get this insurance to protect everyone's interest in the company. Supplemental insurances may also be needed. You may wish to cover your own critical illnesses, accidents or other factors so that the business can continue to operate without you temporarily. Then consider specialty insurance like cybersecurity insurance if your industry requires it. If you're in a field like technology, there may be other types of insurance that would be wise. For example, if you handle client data, you may be open to issues related to cybersecurity incidents. These are not covered under standard policies, so they must be added separately. As a freelancer, you'll also have to set up your own health, dental and prescription insurance. Solo and small businesses need insurance for themselves and their families to prevent financial catastrophe if someone were to get sick or injured. Look for health insurance exchanges or marketplaces, these can be run by states or professional organizations. Another place to look as industry specific health insurance packages. Some membership organizations offer discounted policies, including professional organizations and faith based organizations. Another option to consider is to get on your partner's or spouse's employer sponsored health plan if it's available. If you're a veteran, you are also likely eligible for lifelong comprehensive coverage already. Sometimes your payroll provider will also have relationships with integrated providers in this space and you can just add it on to your service. Certain US states offer small group insurance for groups as small as a group of one consider high deductible plans. If you feel you'll be able to cover short term medical expenses because your monthly fees will be lower, expect that your premiums will fluctuate every year, subject to changes in the law, healthcare system costs and insurance company products and policies changing. While many fear that health plans will be unaffordable as a freelancer, when I started my business out of pocket costs for ensuring my family were less than what I was paying through work for similar coverage. Having a broker help you find the best deal is a great way to find the most affordable comprehensive plan. When you're a freelancer, you're responsible to set up your own investment accounts, it's so important to continue to invest to cover future expenses like retirement, education and healthcare. Listen, you can't borrow to finance your expenses in retirement, it's vital that you invest a portion of your earnings so that they can grow for your use and retirement. The earlier you put in funds, the more they'll grow and be there for you when you need them. Do you plan to send yourself your spouse or your children through K through 12 or college level educational programs. Consider a tax advantage, education savings plan. If you have a high deductible health care plan, you may consider a health care savings account, consider a health care savings account. This is useful if you have a high deductible plan as you may have a number of honorary and burst healthcare costs, you can save for these in a tax advantaged accounts so that you're prepared when any bills roll in. In fact, in the us, one of the major benefits of running a business is that you can save much more for retirement and tax advantaged accounts as a business owner than most employees can. The limits for what you can invest change regularly. So consult a reputable investment platform or investment advisor to discuss your options. Setting up investment accounts can be done fairly quickly and easily through major investment platforms and providers. As your business grows, you'll need to offer plans to your team as well, so you'll need to adopt a company retirement plan. If you add employees, there are many options for this offering advantages for business owners, consult an expert in this field to help you set up a plan for your company as it grows. Sometimes your payroll provider will also have these relationships integrated with your service and you can just add them on. Set up automatic contributions so that you don't neglect this important step of saving for your future. Lastly if you add employees to your business, you'll need to add workers compensation insurance. This covers lost wages and treatment for work related injuries and it's required by nearly every state. All of these policies and investment options may seem a lot at first, but these are things to keep in mind to keep adding as you continue to grow your freelancing business.
