Being self-employed means dealing with all kinds of business situations, from every day activities to the improbable. Even if you make decisions every day, there may still be some matters that you’re putting off until later. For example, what type of insurance should you take out for your professional activities?
Here are a few tips taken from our La Capitale blog to shed some light on the subject!
1. Contact your insurer
- Let your insurer know that you’re self-employed and working from home.
If your insurer knows how your premises are used, it can better guide you and adapt the coverage to your needs. If you need to make a claim, your professional property would therefore be covered – without the commercial aspect of your home impacting the processing of your claim.
- Provide accurate values for your property.
The Insurance Bureau of Canada recommends that you calculate the value of your professional property before calling an insurer. It makes it easier to plan for sufficient coverage.
When calculating your coverage, consider your computer equipment, furniture, work tools and any other items used for your professional activities.
- Notify your insurer if you use your vehicle for work.
Your auto insurance can then be adapted accordingly.
- Make sure your health is covered.
In addition to property damage, health problems and accidents can affect your business and deprive you of income. Consider life insurance coverage or health and disability insurance: better safe than sorry!
2. Understand the different types of coverage
In general, there are three types of coverage for self-employed workers. Before recommending any coverage, the insurer will evaluate several criteria such as the nature of your activities, how often you travel, the value of your property, etc.
a) The Business Property coverage included with your home insurance
That’s right. Most home insurance includes coverage for business-related property. This coverage might be enough…
– If you work at home
– If the value and nature of your property meet the eligibility criteria specified by your insurer.
b) An endorsement (additional coverage) to complete your home insurance.
If necessary, for example, this endorsement would cover you in the event of damage caused to another person in the course of your activities, whether it occurs in your home or not.
Does your coverage meet your needs? If your current coverage is deemed to be more or less suitable for your situation following analysis, your insurance advisor will suggest a product created for self-employed workers.
Here are examples of some current coverages:
- Professional property – Based on your specific needs
- Coverage for accounts receivable, cash registers and important documents
- Loss of income and additional expenses – This coverage allows you to resume your business activities quickly following an unforeseen event such as water damage.
- Civil liability insurance – This protection covers damage caused to others in the course of your professional activities; it can also be applied to sold products.
Commercial insurance for self-employed workers can also cover other risks, such as the deterioration of important documents or equipment breakdown.
3. Ask for more than one quote
- Since insurance products and their flexibility varies from one insurer to another, ask for a few quotes and compare them.
- Go beyond the coverage and the premium rates: Evaluate everything including service and payment conditions. Your insurance must fit like an old pair of comfy shoes…and not everyone wears the same size shoes!
- Ask questions. An insurance representative must first and foremost provide you with information and recommend products that are best suited to cover you (and help you preserve your livelihood).
It’s a done deal and your insurance now meets your actual needs? With one less thing to worry about, it’s easier to focus on your work!
Take advantage of the partnership between Communauto and La Capitale!
If you’re already a Communauto member, ask for an insurance quote from La Capitale to add up the savings and get exclusive benefits on your home, auto or leisure vehicle insurance!