But health insurance, purchased individually, is another matter. In fact, by some estimates, you will have to earn as a small business owner 140 percent of what you earned for a corporation in order to replace all of your benefits, and one of the main reasons is the cost difference in purchasing health insurance on your own. Discuss the options available to you with your insurance agent and ask other small business owners what they do about their health insurance. Also, check with trade or business associations in your field. Some of them offer health insurance at rates below what you can get by yourself.
Life insurance is paid upon the loss of the life of the insured.
If your business relies on a partner, owner, or employee, you can take out insurance on that person to protect your business in the event of that person's death. Your attorney, accountant, and insurance agent can advise you on your life insurance needs. Malpractice insurance protects you against claims resulting from professional services rendered by you to your clients. If you provide professional services, you are probably aware of the need for this type of insurance. If you need malpractice insurance, local chapters of professional organizations can usually recommend providers.