Freelancer Insurance in New Jersey

Freelancer insurance in New Jersey (NJ) – is a categorization of self-employed insurance covering everything, from health insurance to insurance for any kind of work injury or omission. We will discuss all the categories of insurance a freelancer might want.

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

Types of insurance for freelancers in New Jersey

There are different types of freelancer insurance in New Jersey. 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 result of your work in some cases can be bodily injury, property damage, or money loss. Now, some of these errors can cost you quite a bit of money, in case not you protect yourself in time.

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

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

Health insurance for freelancers in New Jersey

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 different private health insurance providers.

When you fill out the form, you will see if you qualify for 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 difference is not in the quality of service, but in the price that you have to pay. Your choice mainly depends on your needs; how frequently 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 income and household size and will be explained to you when filling the Marketplace insurance form.

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 NJ. 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 inquiry 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 payment, household size, do you qualify for any savings programs.

On average, freelancers in New Jersey 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 monthly. To verify if you qualify for this sort of program in New Jersey.

*price may vary depending on the insurance company

Other types of freelancers’ insurance in New Jersey

Besides health insurance, there is a so-called “business insurance” form. To protect your business and have coverage for any injury or destruction that can be a consequence result 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 New Jersey, so you can decide to conclude to 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 type of business.

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

The cost of general liability insurance

The price of general liability insurance in New Jersey depends on a few things – the coverage you pick out, the kind of business, the insuring company.

The standard price of general liability insurance in NJ is approximate $40* monthly, 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 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 a greater limit, 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 New Jersey.

Professional liability insurance for freelancers

Professional liability insurance covers economic 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 types of businesses, such as lawyers and medical workers, this form 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 Errors and omissions types in New Jersey you can find here.

Home-based business insurance in New Jersey

An additional type of business insurance that freelancers can consider is home-based business insurance. Since the main idea of being a freelancer is being in a position to work remotely, many freelancers are setting up their offices in their homes.

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

Income protection insurance for freelancers in NJ

Income protection insurance for freelancers works the same way as for any other business. If you cannot work due to illness or injury, you will get a regular untaxed income. This insurance is often limited for a certain period of time. In New Jersey, 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 detain of up to 14 days.

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

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

Ways to purchase the insurance

After you checked all your options, you have to decide which type 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. On the other hand, this option is time-consuming and pricey.

One more option is online purchase. You can find the company in any part of New Jersey, and buy the insurance without your attendance. 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 mainly, you will save money. And the best thing – online insurance often comes with additional benefits!

Another way is to join any Freelancer organization in New Jersey. The organization itself is not an insurance seller, 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 New Jersey

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

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

*price may vary depending on the insurance company

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