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Compare accident insurance for the self-employed

Protect yourself and your family if you're unable to work.

Updated

Fact checked

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.

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:

  • Fracture
  • 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.

Name Product Issue age Minimum Coverage Maximum Coverage Term Lengths Medical Exam Required
Prudential
18 - 75 years old
$100,000
$10,000,000
10, 15, 20, 30 years
Yes
Customize your term life insurance with a long list of life and disability riders. Get a free quote on Policygenius.
Transamerica
18 - 75 years old
$25,000
$10,000,000
10, 15, 20, 25, 30 years
Depends on policy
Purchase a policy worth anywhere from $25,000 to $10 million, with the option to skip the medical exam. Get a free quote on Policygenius.
MassMutual
18 - 80 years old
$2,000
$10,000,000
10, 15, 20, 25, 30 years
Depends on policy
Purchase term life insurance up to age 80 with Finder's #1 ranked company. Get a free quote from this A+ rated insurer on Policygenius.
AIG
AIG
20 - 85 years old
$5,000
$2,000,000
10, 15, 20, 25, 30, 35 years
Yes
Buy term life insurance all the way up to age 85, and choose a policy that lasts up to an incredible 35 years. Get a free quote on Policygenius.
John Hancock
18 - 65 years old
$25,000
$1,000,000
10, 15, 20 years
Depends on policy
Score a low rate on term life insurance with discounts and rewards for your healthy habits. Get a free quote on Policygenius.
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Compare up to 4 providers

Bottom line

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

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