Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
Compare accident insurance for the self-employed
Protect yourself and your family if you're unable to work.
Personal accident insurance offers financial protection if you can’t work following an accident or injury. Most policies will pay you a lump sum after an injury — but self-employed workers should watch out for policies with unaffordable waiting periods.
What's in this guide?
- Why do I need personal accident coverage if I'm self-employed?
- What does personal accident insurance cover?
- Benefits of personal accident insurance for the self-employed
- What features should self-employed workers look out for?
- Compare term life insurance as an alternative
- Bottom line
- Frequently asked questions
Why do I need personal accident coverage if I’m self-employed?
Traditional employees can rely on workers compensation insurance if they’re injured at work and paid leave policies if an injury requires time to heal. Self-employed workers have little financial support to fall back on if they’re seriously injured.
When the unexpected happens, personal accident insurance operates much like disability insurance, and can pay a lump sum help you keep you afloat.
What does personal accident insurance cover?
Personal accident insurance provides financial protection if you’re injured from an accident, such as a:
- Slip or fall
- Car or motorcycle accident
- Temporary disability
- Death or total disablement
Benefits of personal accident insurance for the self-employed
No one ever expects to be the victim of an accident or fall severely ill, but no matter how healthy or safe you think you are, it can happen. Personal accident insurance can provide:
- Financial safety net. Self-employed workers don’t get sick days or paid time off. If your business comes to a halt because of a serious injury, you could lose existing clients, be unable to pay business overheads and have no stream of income to cover bills and other living expenses. Personal accident insurance can pay for your day-to-day expenses while you heal.
- Peace of mind. Things can be very unpredictable in terms of work and income for a self-employed person. With a personal accident policy, you can focus on your work without stressing about what would happen if you were hurt.
- Choice of plans. You’ll find a wide range of personal accident insurance plans for self-employed individuals. Coverage is available from a number of providers, which means that with a good amount of research, you can find the right plan for your needs while staying within your budget.
- Choice of benefit structure. The benefit that’s paid out in the event of a claim can be paid out in different ways. By choosing the appropriate plan, you can determine whether a payment in the form of lump sum or installments best suits your situation.
What features should self-employed workers look out for?
Key features to look out for when comparing policies include:
- Lump sum amount. Consider how long an accident could put you out of work and look for enough coverage for all of your expenses after a serious injury.
- Waiting period. Some policies may have a specified amount of time that the policyholder is unable to work in order to receive a benefit payment. Check how long the waiting period is, and avoid plans whose waiting period is too long for you to be able to stay financially afloat while waiting for the payment.
- No medical exams. Most personal accident policies won’t require you to submit a medical exam to qualify for coverage.
Policy exclusions. Read through the terms and conditions to make sure that there aren’t any exclusions that could keep you from making a successful claim. For most policies:
- Payouts are usually only provided for injuries that have been caused directly by an accident.
- Injuries will have to be verified by a medical practitioner.
- Policies typically won’t cover any self-inflicted illness or injury.
Compare term life insurance as an alternative
If you want to be protected for more than just accidents, consider term life insurance instead.
No insurance policy can protect you from accidents and illness, but the right one can help you avoid the financial repercussions that follow. Personal accident insurance can help self-employed workers maintain financial stability after an accident.
To get even more protection for your loved ones if something happens to you, compare life insurance policies to find affordable coverage that fits your needs.
Frequently asked questions
More guides on Finder
Teladoc review 2020
Find out how this telemedicine app stacks up against its younger competitors.
Compare tuition insurance
If your child gets sick or injured and has to take time away from college, tuition insurance can reimburse you for what you already paid.
Pawp pet insurance alternative review Nov 2020
Get $3K in rainy-day funds for up to six of your lovable woofs and meows.
Do I qualify for unemployment?
Get the financial help you need as you search for a new job.
Workers’ compensation vs. life insurance
These coverage options serve different functions but have one benefit in common.
How much does health insurance cost?
Most working Americans pay around $1,489 in premiums each year. Compare costs now.
Denied life insurance
Learn the common health reasons that lead to denials and how to get life insurance anyway.
Mortgage life insurance vs. term life insurance
Mortgage life insurance may be a good fit for people with serious health conditions, otherwise term life insurance offers more value and flexibility.
How to take the life insurance exam blood test
Learn what to expect from the blood test portion of your paramedical exam.
What is trip cancellation insurance and how do I get it?
A safety net for interrupted or canceled trips.
Ask an Expert