Ralph Moss Limited

INSURANCE STRATEGIES

What to insure when you're self-employed

There's a growing army of self-employed Canadians --more than 2.2 million of them with special insurance needs. Their ranks have increased to 14% of the working population today from 1 1% in 1975. If you're among them you need business, life, medical, travel, and disability insurance to protect yourself and your family.

Most people are protected by group plans at work against loss of income, dental and medical expenses not covered by government plans, and medical costs when travelling. When you're on your own, that protection should be replaced. Often it isn't.

First priority Perhaps most urgent and neglected -- is the need for disability insurance to replace income if an accident or illness keeps you from working. You are far more likely to suffer a work-disrupting disability of three months or more than you are to die before age 65, according to the Canadian Life and Health Insurance Association.

The Canada and Quebec Pension Plans (CPP and QPP) provide some disability protection. The amount you're entitled to will depend on how much you've contributed, and for how long. For more information you can view our CPP/QPP pages. and press the BACK BUTTON on your browser menu to return here.

Government assistance won't go very far, though. The maximum (payable after a three-month waiting period) is slightly more than $10,000 per year, plus $2,000 per dependent child.
Provincial workers' compensation plans might provide some protection, but only if you're injured on the job, and self-employed people may experience problems collecting.

Bridging the gap For adequate protection, you'll have to obtain your own coverage through a group plan or an individual disability policy.

Group plans typically replace 60% to 70% of lost income after a 3 l-day waiting period and are available to members of professional or trade associations, fraternal associations, or even university alumni associations.

Special needs In addition to protecting yourself, you also need to protect your business. Business insurance provides coverage in case equipment or records are lost, damaged, or stolen. Coverage usually includes any loss of income that results as well.
In some cases, liability protection is included. Self-employed people who work from home and many do— should review their home insurance.

Standard homeowners' policies do not provide coverage for premises or equipment used for business purposes. You need either a rider to your homeowner policy or an additional policy. The same can apply to auto insurance if you use your car for business as well as personal travel.

For more information or to have one of our consultants discuss Disabilty, Life or other coverages with you please contact us at 1-888-MOSS LTD or you may email us