Tag Archives: Worker’s Compensation
Self employed insurance comes in two varieties; insurance that is mandated by law and insurance coverage that is optional. While it is easy to concentrate on health insurance, which American consumers believe to be the most important insurance, health insurance is a very necessary insurance even for the healthy.
In the U.S., 99.9 percent of business entities are small businesses. Growth in the self-employed sector has risen at a faster rate than growth in the country’s biggest corporations. In a 2007 report, the National Association of Self-Employed (NASE) issued a report showing that self-employment businesses were growing at an annual rate of 3.4 percent. Today, self-employed businesses total 75 percent of the entire small business market share. This is very evident in the President’s initiatives that are intended to promote entrepreneurial endeavors and self-employment ventures. While it is big business that dominates the global marketplaces, it is small business that is the foundation of the ingenuity and work ethic that characterize capitalism.
In today’s economy, there are more self-employed workers than ever. These individuals compete for their fair share of the country’s workload. With the tremendous technology that is accessible to everyone, more and more stay-at-home jobs have been created. There are many self-employed industrial sectors. However different their business plans are, they all share one common concern; the cost of insurance for the small business and the self-employed.
In most states, the following insurances are required by law
- Worker’s Compensation
- Disability Insurance
- Unemployment Insurance – State and Federal
In many states, the self-employed have a choice whether to cover themselves with worker’s comp and disability. The rates for these insurances are pre-determined by historical data by industry and by the type of work performed. For example, the rate for Worker’s Compensation Insurance for labor is greater than the Worker’s Comp rate for receptionists.
Disability insurance is another area that the self-employed can choose to retain or not. The cost of disability insurance is determined by the gender of the insured and the determination of a full time worker or a part time worker. Disability insurance is a relatively inexpensive coverage that provides a percentage of the individual’s income in the event the worker is disabled by injury and unable to work. Disability income is taxable. Many self-employed entrepreneurs acquire this coverage.
Auto insurance is required by law. If the vehicle is used for work purposes, some self-employed business people purchase a commercial auto policy. In this case, the cost of the insurance is tax deductible. The cost of auto insurance is determined by the driver’s history, the use of the vehicle and the deductibles chosen by the business owner.
Optional Insurance For The Self-Employed
- Health Insurance
- Dental Insurance
- Liability Insurance
- Life Insurance
Insurance is primary concern of the self-employed. Health insurance is of particular interest. Being self-employed has many advantages but it does have some disadvantages when it comes to insurance, especially health insurance. Because all insurance is based upon risk exposure, there is strength in numbers that the self-employed do not have.
To take advantage of group discounts, many self-employed workers join a local Chamber of Commerce, a Trade Organization or the NASE. Although the self-employed owner-operator must pay annual dues to these organizations, they are often worth their weight in gold when it comes to obtaining insurance rates that would not be available to the individual.
In the U.S., most real estate agents are self-employed or independent contractors. These members can capitalize on group insurance offered by the National Association of Realtors (NAR), the largest trade organization in the nation. Other self-employed workers should check with their trade organization and their local Chamber of Commerce before purchasing any insurance.
Understand What You Are Buying
Health insurance is in the midst of many changes. The trend is toward consumer-driven health insurance. This form of insurance is changing rapidly. Due to legislated health reform, the industry and options for the self-employed are in transition. One thing that is not changing is that health insurance is available through trade organizations and trade organizations. Choosing health insurance from these groups assures the use that the cost reflects group rates.
The cost of health insurance is determined by a number of factors. What is important is to choose the health insurance coverage that reflects the policyholder’s exposure and takes into consideration the worst-case scenarios. The premium cost will be affected by the amount of deductibles and additional riders that you select. The premium price will also be affected by the policyholder’s health history and especially smoking history.
Dental Insurance is also available at group rates through trade organizations and chambers. The business owner should make sure to read the policy and understand exactly what is covered. With most dental plans, the user is issued a list of acceptable providers and must only use those providers.
Term Life Insurance does not usually require a physical examination. This inexpensive insurance provides a stated death benefit for then term of the coverage, which can range from 15 years to 30 years. Term Life from a group may have limited benefits. Term Life builds no equity and is a death benefit-only form of life insurance that can provide the beneficiaries enough money to survive the loss of the breadwinner’s income.
Some self-employed do not carry liability insurance. If the self-employed sells a manufactured product sold to the public, the business owner should consult with a company that offers product liability coverage.