3 Reasons You Should Buy Workers' Compensation Insurance Even If You Are Self-Employed

30 August 2021
 Categories: Insurance, Blog

Many self-employed people never even consider the option of buying workers' compensation insurance. This is especially true for sole proprietors since they do not have any employees other than themselves. However, purchasing workers' comp insurance can prove extremely beneficial even if you do not employ anyone other than yourself. Continue reading to learn three of the main reasons you should consider purchasing this type of insurance coverage even if you are self-employed.

Protect Your Customers And Increase Your Business

If your job requires you to visit customers' homes in order to deliver a product or service, you could be putting your customers at risk of being held personally liable if you were to be injured during the course of performing your job duties. This could ultimately impact a potential customer's decision regarding whether or not to hire your company in favor of a company that is fully insured. By choosing to purchase workers' compensation insurance you can effectively protect yourself and your customers while also helping to secure additional business since you will be able to present yourself as a properly insured professional. 

Medical Insurance May Refuse Coverage

Many medical insurance plans include exclusion clauses that allow them to refuse coverage for any costs associated with on-the-job injuries. The purpose behind these clauses is to ensure the employer is held responsible for covering these costs rather than the insurance company bearing the cost. The problem is, if you are your own employer and you do not carry workers' compensation insurance, this will mean that you are left paying for any medical expenses out of your own pocket even if you have a valid medical insurance policy. 

Protect Your Livelihood

Since you may be the only employee that your business has, your ability to earn money will depend entirely upon your ability to work. If you were to become injured on the job, your income would come to a sudden and unexpected stop. Not only could this have a dramatic impact on your business, but it could also land you in a difficult situation with your personal finances if you do not have a substantial safety net to cover your financial obligations while you recover. By purchasing workers' compensation insurance you can protect your livelihood by ensuring that you are able to receive compensation even while you are out of work recovering from your injuries. 

To learn more, contact workers' comp insurance service.