Self-employment offers freedom to work how you want, when you want, and on your own terms. However, with that freedom, you also have to take a much greater share of the responsibility. This is especially true when you don’t have an employer covering your insurance needs and providing workers’ compensation. So, what are some of the responsibilities and risks that you need to think about?
The risks of working at home
When we think of risks to health and safety, we tend to think about the most notoriously high-risk workplaces such as manufacturing lines and construction sites. However, even in offices and your own home, there are risks worth considering and doing what you can to mitigate. As Entrepreneur shows, some of the biggest dangers include an increased risk of a sedentary lifestyle and poor posture, which can lead to many chronic conditions such as hypertension and chronic back or joint pain.
The expected and unexpected costs of getting sick
Your health is more important when you work at home. This is because not only do you have to pay for your treatment by your own means, including your own health insurance without assistance from an employer. You also deal with the extra costs of potentially being out of work without sick pay, and the chance you may miss clients and future business opportunities.
Give yourself the protections you need
The financial impacts can be truly immense, so you need to ensure that you’re providing yourself with the protections you need. Health insurance is a must, but you also have to consider long-term disability insurance in the event that you’re unable to work for a long time. The Balance can help you find insurance specifically for self-employed workers and freelancers. You may also be able to subsidize some of the costs with certain providers.
Fighting your corner
Insurance providers are supposed to be there to help you when you need them, but that isn’t always the case. In the case of long-term disability insurance, some companies have a history of denying legitimate claims under sketchy and illegal circumstances. You do have options from Darras Law that can help you get the coverage you have paid for and deserve. However, anticipating the potential of a denial and being ready for a fight can help you avoid some of stress and surprise that can make it even more trying.
Start building other income streams
Being able to scale back your budget in an emergency is crucial. However, another wise step in combating the costs of being put out of work is to build passive income streams. It takes investment and effort to tap into options like investing in stock portfolios that provide dividends. However, the greater share of your income you can earn passively, the less impactful an injury or illness will be on your financial health.
Being self-employed is a privilege and one that is often misused to great risk. Ensure you’re taking care of your health, providing yourself with the protections you need, and be aware of the rights you have to stand up for. If you can’t do that, self-employment may not be the course for you.