Freelancer Insurance in Illinois

Freelancer insurance in Illinois (IL) – is a group of self-employed insurance covering every single thing, from health insurance to insurance for any kind of work accident or error. We will talk about all the sorts of insurance a freelancer might need.

First of all, let’s make it understandable. In Illinois, 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 medical insurance.

Types of insurance for freelancers in Illinois

There are different types of freelancer insurance in Illinois. If you are thinking to become an individual worker and enjoy the benefits of “being your own boss”, you want 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 mistakes can cost you quite a bit of money, if not you protect yourself in time.

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

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

Health insurance for freelancers in Illinois

If you are self-employed, you need to pick out 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 form, you will see if you are entitled to premium tax credits, etc. This all depends on your earnings, household size-dependent family members…

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

The monthly premium can also be decreased 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 confirm 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 IL. 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 question 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 multiple factors – your salary, household size, do you qualify for any savings programs.

On average, freelancers in Illinois 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 type of program in Illinois.

*price may vary depending on the insurance company

Other types of freelancers’ insurance in Illinois

In addition to 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 sort of freelance job you are performing, you will need a different type of insurance. Here we will discuss some of the types in Illinois, so you can decide to conclude 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 most extensive insurance for freelancers and it’s suitable for any kind of business.

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

The cost of general liability insurance

The cost of general liability insurance in Illinois depends on a number of things – the coverage you pick out, the sort of business, the insuring company.

The standard price of general liability insurance in IL is approximate $40* monthly, which is $480 per 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 a more expensive premium than 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 definitely 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 Illinois.

Professional liability insurance for freelancers

Professional liability insurance covers money losses that are the out-turn of malpractice, errors, and negligence. It is suitable for all the businesses that are providing 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 kind of insurance is mandatory. Others can choose if they want to ensure their business.

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

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

Home-based business insurance in Illinois

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

The charge of a home-based insurance policy in Illinois depends on a number of factors – credit history, type of business, etc. Some median cost in Illinois is $250* to $500* per year.

Income protection insurance for freelancers in IL

Income protection insurance for freelancers works the same as for any other business. If you are unable to work due to illness or injury, you will get a regular non taxed income. This insurance is usually limited for a certain period of time. In Illinois, 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 protected from 30 days to few years, depending on the insurance agency.

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

Ways to purchase the insurance

After you verified 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 pricey.

The second option is online purchase. You can find the company in any part of Illinois, and acquire 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 best thing – online insurance usually comes with additional benefits!

An additional way is to join any Freelancer organization in Illinois. The organization itself is not an insurance provider, but it can connect you to an insurance company. Potentially, this way can be lower priced than going to the office of the insurer.

Conclusion about insurance for freelancers in Illinois

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

Put down all the fees of being a freelancer in Illinois. Count even the costs you think you will never have. Now respond to yourself – are you set to be a freelancer? If yes, here is a link that can help you start a freelance business in Illinois, and make the first steps.

*price may vary depending on the insurance company

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