In many ways, an independent contractor is very much like a small business, and some parts of the tax code treat a work-at-home mom as the "sole proprietor" of a business. That means that some of the independent contractor insurance options that you should consider as a freelancer are the same insurance tools that small businesses would use to limit liability and risk. Since as an independent contractor or freelancer, you are financially responsible for any liability in the services that you provide to clients, having some extensive insurance in place can be a good idea.
Self-Purchased Health Insurance for Independent Contractors
One item that you might want to think about as a work at home mom is a self-purchased health insurance policy. When you are a wage earning employee, your employer is supposed to provide health insurance as part of a benefits package. If you are freelancing from home or otherwise self-employed, the burden is on you as an independent contractor to secure insurance that will help you avoid medical bankruptcy in a medical emergency scenario.
Business Auto Insurance for Independent Contractors
Another kind of insurance that will help you limit risk as a mobile independent contractor is specific auto insurance to cover your business use of a vehicle. For a work at home mom or other freelancer who uses a car or truck extensively for meeting clients, delivering products or providing services, additional auto insurance can help cover more of the risks of being on the road. If your business uses multiple vehicles, it's even more important.
Overall Business Insurance for Freelancers
No matter what kind of business you are involved in as a work at home mom, there's insurance to cover any liability that might arise. Whether it's in the field of journalism or online writing, where risk would likely include content related lawsuits, or in a physical contracting role where injury is a possibility, you can use specific business insurance contracts to get peace of mind knowing that your self-directed activities are protected, and that your business won't end up draining money from your household's assets.
Umbrella Insurance Policies
If your business includes multiple assets that should be covered, you can also turn to a special type of insurance called an umbrella policy. Umbrella policies can cover multiple vehicles, as well as business premises, litigation liability and much more. The umbrella policy is designed for individuals or households with extensive assets, or extensive risk in the form of business activities. Look into what a comprehensive umbrella policy can do for your work at home business structure.
Even many of those who consider insurance a "scam" agree that having too much is not as bad as having too little, especially when the unforeseen incident threatens to plunge a business into sudden bankruptcy. It's best to try to predict the most likely threats to a freelance work at home business, and take some simple steps to safeguard your business activities from extreme liability. Shopping around for insurance can help lower the cost. Be smart about purchasing extra policies to make sure that even the worst case scenario is something you can handle.