Freelancer Insurance in Michigan

Freelancer insurance in Michigan (MI) – is a categorization of self-employed insurance covering every single thing, from health insurance to insurance for any sort of work accident or omission. We will discuss all the sorts of insurance a freelancer might require.

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

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

Types of insurance for freelancers in Michigan

There are different types of freelancer insurance in Michigan. If you are thinking to become a self-sustaining 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 end 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, if not you protect yourself in time.

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

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

Health insurance for freelancers in Michigan

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

When you fill out the application, you will see if you are entitled to premium tax credits, etc. This all depends on your income, 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 fees that you have to pay. Your choice mainly depends on your needs; how often you need medical assistance, and what kind of treatments you need.

The monthly premium can also be decreased 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 application.

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 MI. 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 formerly mentioned, your premium depends on multiple factors – your wages, household size, do you qualify for any savings programs.

On average, freelancers in Michigan 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 verify if you qualify for this sort of program in Michigan.

*price may vary depending on the insurance company

Other types of freelancers’ insurance in Michigan

Besides health insurance, there is a so-called “business insurance” type. 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 Michigan, so you can decide to determine what suits you the best.

General liability insurance for freelancers

General liability insurance covers money 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 fitting for any type of business.

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

The cost of general liability insurance

The cost of general liability insurance in Michigan depends on a couple of things – the coverage you opt for, the sort of business, the insuring company.

The standard price of general liability insurance in MI is approximate $40* monthly, which is $480 within a year.

A lot depends on the form 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 range limit determines your premium. If you are aiming for greater 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 Michigan.

Professional liability insurance for freelancers

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

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

For some professions, such as lawyers and medical workers, this type 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 Errors and omissions types in Michigan you can find here.

Home-based business insurance in Michigan

Another 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 free to work remotely, many freelancers are starting their offices in their homes.

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

Income protection insurance for freelancers in MI

Income protection insurance for freelancers works the same as for any other job. If you are unable to work due to illness or injury, you will get a regular untaxed payment. This insurance is usually limited for a certain period of time. In Michigan, it is usually referred to as disability income insurance.

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

Short-term insurance covers a period from 9 to 52 weeks with a waiting period 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 Michigan is 1-3%* of your annual income.

Ways to purchase the insurance

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

The first way, to purchase 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 purchase. You can find the company in any part of Michigan, and acquire the insurance without your appearance. 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 mainly, you will save money. And the greatest thing – online insurance often comes with additional benefits!

The third way is to join any Freelancer organization in Michigan. The organization itself is not an insurance seller, but it can associate you with an insurance company. Possibly, this way can be lower priced than going to the office of the insurer.

Conclusion about insurance for freelancers in Michigan

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

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

*price may vary depending on the insurance company

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