Top 5 Insurance Required By A Self-Employed Individual

In India, more than half of the active workforce are self-employed. Some of them own businesses, while some have established their very own startup. If you are one of the self-employed individuals in India, then it is very important for you to be prepared for all sorts of extenuating circumstances. The best way to do that is to get yourself and your business properly insured. Here are the top five insurance types that every self-employed individual must look into.

1. Life Insurance: It is very important for self-employed individuals to invest in a proper life insurance plan. In case of your uncertain demise, a life insurance policy will ensure that your dependents continue to have a financial cover. This is an important investment especially if you are the sole breadwinner in your family. There are many kinds of life insurance policies available. Compare everything and make a sound decision.
   
2. Health Insurance: If you are self-employed, then you must absolutely invest in a comprehensive health insurance plan. Since you will not be able to access employer health insurance, it is a very good idea to invest in a comprehensive plan for you and your loved ones. There are loads of sound health insurance plans out there that you can look into. Make a decision only after you have carefully examined all the relevant details and paperwork.
   
3. Professional Liability Insurance (PLI): If you are a self-employed professional such as a lawyer or a physician with their own practice, then it is a very good idea to invest in professional liability insurance or PLI. This insurance type will protect you from any litigious claims made by your former clients or patients. PLI is extremely important because general liability insurance policies will not be able to offer you any protection against claims of malpractice, negligence, misrepresentation, etc.
   
4. General Liability Insurance: If you are business owner , then it is extremely important to invest in proper liability insurance. This is the kind of insurance that will protect you from any claims regarding physical injury or damage to property. Also known as third-party insurance, these policies will successfully cover the legal costs and payouts in case there are any. As a self-employed individual, you must protect your business with proper general liability insurance.
   
5. Automobile Insurance: A vehicle is an extremely important asset. As a self-employed individual, you need a vehicle for your mobility and also for to carry out familial responsibilities. Proper automobile insurance will protect your financial interests if you get into an accident. The premiums associated with automobile insurance depend on your age, gender, driving record, years of experience, etc. As a self-employed individual, you should definitely look into getting proper automobile insurance.

These are the five insurance types that are required by self-employed individuals. However, now due to the coronavirus pandemic, you should also consider looking into health insurance policies meant for protection against COVID-19. Many insurance providers are also providing customers with Corona Kavach health insurance plan. You can take a look at these plans if you wish to have complete coverage during this health crisis/pandemic.