When we talk about insurance for web workers, we’re usually worrying about health insurance – and with good reason, considering how expensive health care and the associated insurance can be these days. But if you’re an independent web worker, that’s just the tip of the insurance iceberg. Depending on your business structure, your field, and even where you’re located, there are plenty of other types of insurance you should at least think about.
As with legal and accounting advice, you should be sure to talk to an appropriate professional before making decisions – in this case, your own insurance agent. Here’s what should be on your list to chat about:
Property Insurance – You almost certainly own a computer, and you may well have purchased other property through your business entity, ranging from fancy phones to furniture. Even if you’re working at home, it’s fairly likely that your homeowner’s policy excludes property being used for business. This is one of the standard coverages you’ll find in any business owner’s policies.
Liability Insurance – Also known as Commercial General Liability (CGL). This usually covers you against business claims arising from bodily injury, damage to others’ property, false advertising, or slander and libel. Also part of any business policy, and (as far as I’m concerned) a necessary cost of doing business.
Worker ‘s Compensation Insurance and Unemployment Insurance – If you have employees, you may be legally required to carry these coverages, depending on the state where you are doing business. Make it your business to check with your state Department of Labor (or equivalent) and find out, before you end up in deep trouble.
Errors and Omissions Insurance – Sometimes called Professional Liability Insurance or just E&O. E&O protects your company from claims if your client holds you responsible for errors, or the failure of your work to do what you said it would do. This can be critical coverage for developers and designers (and you’ll find that some contracts require developers to carry E&O insurance). It can also be difficult and expensive to obtain. Unfortunately, your CGL won’t include this coverage.
These are just the highlights – remember, for enough money, you can buy insurance against almost any risk. Business interruption coverage will protect you if something keeps you from doing business for a period of time; data loss insurance covers you if something eats all of your hard drives and backup tapes. Your agent will likely suggest plenty of extra coverages that he thinks are appropriate for your business. Then it’s your job to decide which ones you can afford, balancing cost versus the risk that you want to take.
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