You’ve taken the leap into self-employment. It’s exciting, flexible and comes with plenty of freedom. But stepping away from an employed role also means leaving behind guaranteed pay, annual leave allowance and the safety of employee benefits. With this in mind, it’s crucial to put the right protection in place to give yourself the very best start. So join me as I reveal the key types of insurance that every new self-employed professional should consider.
Income protection
When you’re employed and unwell, you have the cushion of sick pay if you’re unable to work. But when you’re self-employed that safety net disappears. This is where income protection comes in, replacing a portion of your income if illness or injury mean you can’t work. In fact, this could prove essential for covering bills while you recover!
Top tip: Look for a policy that pays out until you can return to work, not just for a short-term period.
Critical illness cover
A serious diagnosis can not only stop you from working but also put a huge pressure on your finances. Critical illness cover can provide you with a lump sum payout in the event that you’re diagnosed with a certain specified condition which can then be used to pay for treatment, to adapt your home or just reduce your stress.
Life insurance
If you have dependents or financial commitments like a mortgage, life insurance means your family won’t be left struggling financially if the worst happens. In this instance, a payout could help them to cover living costs, debts or future expenses related to education.
Private medical insurance
As a self-employed professional, your income likely depends on your ability to work. Having private medical insurance in place means that you could get access to treatment more quickly – reducing downtime and therefore helping you to return to work faster. It also gives you peace of mind, knowing that you don’t have to rely on overstretched public services.
Business protection
Depending on your work, you may also need business-related insurance. For example, public liability insurance will protect you if your clients visit you or you work on their premises. Professional indemnity insurance is crucial if you provide advice or services where any mistake could cause financial loss to a client. And finally, there’s key person insurance which is important if you’re building a team and one person is critical to your business.
Making the transition to self-employed smooth
Becoming self-employed is one of the biggest changes you’ll ever make in your life – and that’s why having the right insurance in place is so important. After all, not only does it protect your income and wellbeing but it also allows you to focus on running your business without worrying about the ‘what ifs’.
Nicola Moore, Head of Operations says “Although it might sound like an additional expense alongside everything that goes with becoming self-employed, getting the right cover in place from the outset, which might include multiple products, ensures that you are protected if the worst happens.”
What’s more, at MOORE Health & Protection Ltd, we’ve helped many self-employed individuals to put the right safety nets in place. So, whether you’re just starting out or are looking to review your cover, we’ll guide you through the options and tailor a package just for you. Ready to get started? Get in touch today.
MOORE Health & Protection Ltd is an Appointed Representative of The Right Mortgage Ltd, which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales no. 15020771. Registered Address: 17 Eyam Road, Hazel Grove, Stockport SK7 6HP.