Freelancer Insurance in Alabama

Freelancer insurance in Alabama (AL) – is a classification of self-employed insurance covering everything, from health insurance to insurance for any type of work accident or omission. We will discuss all the types of insurance a freelancer might want.

First of all, let’s make it understandable. In Alabama, if you want to be a freelancer, you are falling into the category of self-employed people.

In practice, this means that you are the executive and the employee. You have to take care of your rights, including providing health care.

Types of insurance for freelancers in Alabama

There are different types of freelancer insurance in Alabama. If you are thinking to become an independent worker and enjoy the benefits of “being your own boss”, you would need to do it in the safest way possible.

You all know the good old saying “If you don’t make mistakes, you don’t make anything”. The result of your work in some cases can be bodily injury, property damage, or money loss. Now, some of these omissions can cost you quite a bit of money, unless you protect yourself in time.

As a self-employed person, the first thing you need is health insurance. Besides health insurance, you might have other insurance types. Depends on the nature of your business.

So, let’s go slowly and see how much is going to cost you to be a freelancer in Alabama, and how to protect yourself the best.

Health insurance for freelancers in Alabama

If you are self-employed, you must choose the best Health insurance plan for you. As a freelancer, you qualify for Individual Health Insurance Marketplace. Here you can compare offers from different private health insurance providers.

When you fill out the form, you will see if you can apply for premium tax credits, etc. This all depends on your wages, household size-dependent family members…

You can choose between 4 “metal categories” for your health insurance – Bronze, Silver, Gold, and Platinum. The difference is not in the quality of service, but in the fare that you have to pay. Your choice mainly depends on your needs; how frequently you need medical assistance, and what sort of treatments you need.

The monthly premium can also be reduced if you qualify for savings programs. This all depends on your salary and household size and will be explained to you when filling the Marketplace insurance request.

You can also verify if you qualify for Medicaid – government health insurance given in case of low income. When it comes to eligibility for this program, your income must be below a certain level in Alabama. Also, your qualification depends on the number of people in your household.

What is the cost of health insurance for freelancers?

Now we come to the question that everyone who is thinking about freelancing wants to know. How much will cost you to be a freelancer? As previously mentioned, your premium depends on few factors – your wages, household size, do you qualify for any savings programs.

On average, freelancers in Alabama are paying $450* per month, which is $5400* annually depends on the insurance company you choose. If you qualify for any savings program, your premium can be as low as $200 per month. To verify if you qualify for this sort of program in Alabama.

*price may vary depending on the insurance company

Other types of freelancers’ insurance in Alabama

Aside from health insurance, there is a so-called “business insurance” form. To protect your business and have coverage for any injury or harm that can be consequence out-turn of your work, you need to have business insurance.

Depending on the type category of freelance job you are performing, you will need a different type of insurance. Here we will discuss some of the types in Alabama, so you can decide to choose what suits you the best.

General liability insurance for freelancers

General liability insurance covers monetary losses that are the result of bodily injuries, property damage, medical expenses, libel, slander, defending a lawsuit, etc. It is the broadest insurance for freelancers and it’s suitable for any form of business.

This insurance is considered one of the best forms because it covers a lot of unpredicted things that can happen during your work.

The cost of general liability insurance

The price of general liability insurance in Alabama depends on a couple of things – the coverage you opt for, the type of business, the insuring company.

The standard price of general liability insurance in AL is approximately $40* per month, which is $480 within a year.

A lot depends on the type of business you are conducting. If you are involved in a riskier business, such as landscaping, you will have an excessive premium over someone who is working as a copywriter.

Also, the insurance coverage limit determines your premium. If you are aiming for bigger insurance coverage, the premium will obviously be higher. Some of the typical coverage limits are $1 million and $2 million.

Here you can find more facts about general liability insurance in Alabama.

Professional liability insurance for freelancers

Professional liability insurance covers money losses that are the outcome of malpractice, errors, and negligence. It is suitable for all the businesses that are giving services to their clients.

This insurance is also addressed as Errors & Omissions insurance.

For some jobs, such as lawyers and medical workers, this kind of insurance is mandatory. Others can choose if they want to ensure their business.

The norm cost of professional liability insurance is $59* per month, which is $708 per year.

More about Errors and omissions types in Alabama you can find here.

Home-based business insurance in Alabama

One more type of business insurance that freelancers can think about is home-based business insurance. Since the main idea of being a freelancer is being able to work remotely, many freelancers are setting up their offices in their homes.

The fee of a home-based insurance policy in Alabama depends on several factors – credit history, type of business, etc. Some average cost in Alabama is $250* to $500* per year.

Income protection insurance for freelancers in AL

Income protection insurance for freelancers works the same as for any other business. If you may not work due to illness or injury, you will get a regular non-taxed salary. This insurance is in most cases limited for a certain period of time. In Alabama, it is usually referred to as disability income insurance.

There are two types: short-term disability insurance and long-term disability insurance.

Short-term insurance covers a period from 9 to 52 weeks with a hold up of up to 14 days.

When it comes to long-term disability insurance, you are protected from 30 days to few years, depending on the insurance agency.

Usually, the price in Alabama is 1-3%* of your annual income.

Ways to purchase the insurance

After you checked all your options, you have to decide which form of insurance you need. When all the decisions are made, what is left is to purchase an insurance policy.

The first way, to get the policy is to go to an insurance company and get it. On the other hand, this option is time-consuming and more expensive.

One more option is online buying. You can find the company in any part of Alabama, and buy the insurance without your attendance. You will have to provide some of your personal details, sign an online agreement, and make the purchase.

This way you will save time, and more importantly, you will save money. And the greatest thing – online insurance usually comes with additional benefits!

An additional way is to join any Freelancer organization in Alabama. The organization itself is not an insurance company, but it can link you to an insurance company. Virtually, this way can be cheaper than going to the office of the insurer.

Conclusion about insurance for freelancers in Alabama

You figured to take a step forward, depart from your job and try to establish something for yourself. It’s great! But before doing so, be assured to understand all the liabilities that you will have as “the boss”.

Write down all the costs of being a freelancer in Alabama. Add up even the expenses you think you will never have. Now answer to yourself – are you willing to be a freelancer? If yes, here is a link that can tutor you to start a freelance business in Alabama, and make the first steps.

*price may vary depending on the insurance company

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