Freelancer Insurance in California

Freelancer insurance in California (CA) – is a classification of self-employed insurance covering every single thing, from health insurance to insurance for any category of work mishap or mistake. We will talk about all the types of insurance a freelancer might need.

First of all, let’s make it clear. In California, 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 entrepreneur and the employee. You have to take care of your rights, including providing health care.

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Freelancer Insurance in California

Types of insurance for freelancers in California

There are different types of freelancer insurance in California. If you are thinking to become an individual worker and enjoy the benefits of “being your own boss”, you could 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 final result of your work in some cases can be bodily injury, property damage, or money loss. Now, some of these mistakes can cost you quite a bit of money, unless you protect yourself in time.

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

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

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Health insurance for freelancers in California

If you are self-employed, you need to choose the best Health insurance plan for you. As a freelancer, you qualify for Individual Health Insurance Marketplace. Here you can weigh up offers from individual private health insurance providers.

When you fill out the application, 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 dissimilarity is not in the quality of service, but in the fees that you have to pay. Your choice mainly depends on your needs; how many times you need medical assistance, and what type of treatments you need.

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

You can also check 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 CA. Also, your qualification is dependent on the number of people in your household.

What is the cost of health insurance for freelancers?

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

On average, freelancers in California 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 in a month. To confirm if you qualify for this sort of program in California.

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*price may vary depending on the insurance company

Other types of freelancers’ insurance in California

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 a consequence outcome of your work, you need to have business insurance.

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

General liability insurance for freelancers

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

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

The cost of general liability insurance

The price of general liability insurance in California depends on a few things – the coverage you go for, the kind of business, the insuring company.

The standard price of general liability insurance in CA is approximately $40* in a month, which is $480 yearly.

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

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

Here you can find more details about general liability insurance in California.

Professional liability insurance for freelancers

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

This insurance is also referred to as Errors & Omissions insurance.

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

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

More about E&O insurance types in California you can find here.

Home-based business insurance in California

An additional type of business insurance that freelancers can take into consideration is home-based business insurance. Since the point of being a freelancer is being free to work remotely, many freelancers are establishing their offices in their homes.

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

Income protection insurance for freelancers in CA

Income protection insurance for freelancers works the same way as for any other job. If you may not work due to illness or injury, you will get a regular tax-free income. This insurance is often limited for a certain period of time. In California, it is usually referred to as disability income insurance.

There are two kinds: 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 insured from 30 days to few years, depending on the insurance agency.

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

Ways to purchase the insurance

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

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

One more option is online purchase. You can find the company in any part of California, and buy the insurance without your presence. You will have to give 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 best thing – online insurance usually comes with additional benefits!

Another way is to join any Freelancer organization in California. The organization itself is not an insurance company, but it can connect 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 California

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

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

*price may vary depending on the insurance company

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