Being a self-employed, independent contractor can have many benefits. However, what they don’t have is employer-purchased insurance. An independent contractor is responsible for purchasing his or her own insurance. Here are the top three types of insurance every independent contractor should have.
Health Insurance—Now with the Affordable Care Act, Americans are required to have health insurance or else suffer a penalty. The good news is health insurance companies can no longer deny coverage to people with pre-existing conditions. Fortier Insurance offers a group plan through the California Cosmetology Association for Cosmetologists, Barbers, Estheticians, Nail Technicians, Salon & Spa Owners, Massage Therapists, and Independent Contractors/Booth Renters in the California Beauty Industry. The plan offers members co-pay, deductible, and health-saving account deductible plans.
Disability Insurance—Disability Insurance is important to have because if you become too ill to work, or are injured in an accident, Disability Insurance will replace a percentage of your income. (Most policies usually replace 50%-70% of your income.) According to the Insurance Information Institute, 43% of all 40 year olds will have a disability event that lasts for 90 days or more by the time they turn 65. (Insurance.com)
Liability Insurance—Many businesses will not hire independent contractors unless they have their own Liability Insurance. Liability Insurance protects both the contractor and the client. If an independent contractor is somehow negligent in his work and the client suffers as a result, a claim by the client can be made against the independent contractor. Even if the client slips and falls through no fault of the independent contractor, a claim can still be filed against them. Professional Liability Insurance covers legal and court costs, as well as any damages awarded to the client (up to the level of coverage purchased).
For as little as $154 per year, California beauty industry professionals can purchase a professional liability policy that protects them against operational losses, including negligence claims, rental damage, identity theft, lost or stolen equipment and more.
For more information about Fortier Insurance Services’ complete line of insurance products and services, visit their Home page or call 1-800-927-3566 for a free, no obligation quote and consultation.
Tiffany Buczek is a freelance writer and licensed esthetician living in Southern CA.