A new job comes with new responsibilities, and perhaps even a new lifestyle. You may now travel more often. You may need to use your personal vehicle for business. You may be able to work from home part or most of the time. All of these changes impact the type of insurance coverage you need.
If you are contemplating a job change or are transitioning to a new career, here are tips from HUB International on how to manage your changing insurance needs.
- If you work from home, your employer may provide you with office equipment like a laptop, cell phone and printer/scanner/fax machine. Be sure to check with your employer to see if their insurance will cover damage or loss of these items.
- If clients or vendors come to your home, you may need a home business or small business owners' policy.
- If you are self-employed or perform consulting work for a client, you may need professional liability insurance.
Auto insurance
- Has your new job changed the distance that you travel to work? If so, let your HUB broker know. Being closer to work can save you money.
- On the other hand, if you need to use your personal vehicle for business (even occasional pick-ups and deliveries), check to see if your employer's liability policy covers you.
- Many companies now have policies regarding use of cell phones while driving. Check with your new employer to learn what rules are in effect.
- If you rent cars for business travel, find out if your employer already has insurance that covers liability and collision damage. Your personal auto policy may also pay for damage to a rental car, so check with your HUB broker.
Health insurance
- One of the first concerns you may have when starting a new job is health insurance. If there is a waiting period before your coverage goes into effect, you may have the option to select COBRA coverage from your previous employer or apply for an individual health policy.
Under COBRA (the Consolidated Omnibus Budget Reconciliation Act of 1985), the federal government requires employers with 20 or more employees to provide healthcare coverage for up to 18 months to employees who terminate voluntarily or are terminated for reasons other than gross misconduct. You must pay the full premium, but you benefit from the group rates available through your previous employer. Spouse and dependents can also be covered under a COBRA plan.
If you are not eligible for COBRA, you may want to purchase a short-term major medical plan until you are eligible for your employer's plan. Talk to a HUB advisor about your individual health coverage options.
Disability insurance
- Long-term disability insurance pays a portion of your income (generally 70 percent) in case you are temporarily or permanently unable to work due to illness or injury. Availability will vary from one employer to the next and usually you pay the cost of long-term disability insurance through payroll deduction. Individual policies are also available.
Life insurance
- If you had employer-paid group life insurance at your old job, it will probably end when you leave. Your new employer may offer term life insurance through payroll deduction. Advantages are convenience and elimination of the need to answer medical questions.
- If your employer does not offer the level of life insurance you need to protect your family's financial security, talk to your HUB broker.
Insurance plays a vital role in protecting your family's health and financial security, but only if your coverage is regularly reviewed and updated to meet changing needs. Take the time to review your insurance coverage when you start a new job so you can be assured that you and your family are adequately protected.