What types of insurance do freelancers need?

As a freelancer, you’re basically on your own, which is awesome and terrifying and satisfying all at the same time. But there is one major drawback that no one thinks about– you don’t get the insurance coverage that comes with being employed by someone else.

You need a good safety net, and part of that safety net means getting the right insurance to avoid situations that could put you underwater quickly.

So many 1099ers ask, “Do freelancers need insurance?” Well, the answer is yes.

$700
“The 53 million Americans who are freelancing already contribute more than $700 billion to our national economy. But with that comes a lot of exposure and a lot of risk.

Business Insurance

Business insurance is something that freelancers often avoid until it’s absolutely necessary, but it’s worth looking into sooner than later. Not only will it set you apart from other freelancers, but it’ll help you get the bigger jobs.

A lot of freelancers think they can’t afford business insurance, but not having it can cost a lot more in the long run. Interested in a business insurance quote? Let’s go.

Liability Insurance

There are many types of liability insurance– general liability, professional liability, and cyber liability are a good start. Different coverage options are available based on the type of work you do. General liability covers things that could go wrong in a broad sense, for pretty much any business.

Do freelancers need it?

Yep. Freelancers who offer professional services and expertise should look into professional liability insurance. And if you do anything in the technology realm, you’ll probably need cyber liability insurance.

To learn more about liability insurance for freelancers, check out our guide: Everything freelancers should know about liability insurance.

Health Insurance

One of the worst things about leaving that 9–5 gig is losing the health insurance that came with it. These days, though, it’s way easier, and more affordable, for freelancers to get their own health insurance.

You should look into it because staying healthy comes at a cost, and you don’t want to be paying all of it yourself. Plus, you can be assured you and your family will be covered in case something really bad (ahem, and expensive) happens.

Looking for health insurance?

You may have to do a little research to snag the best plan for you, but check out healthcare.gov to start. You can enroll in the “Marketplace” as long as you don’t have any employees.

If you have employees (other than yourself, a family member, an owner or a spouse), you can try the SHOP Marketplace for small businesses to offer coverage for you and your employees.

Oscar Insurance is also a good option.

Disability Insurance

Getting hurt or becoming seriously ill can really stall your projects. Disability insurance keeps you afloat financially until you’re well enough to get back to work. Disability can cover up to 60% of your income, so you’ll be able to rely on it for a little while until you’re back on your feet and ready to kill it.

Life Insurance

Life insurance is for old people, right? Wrong! Even though a lot of people don’t think about life insurance until they’re older, it’s better to buy it when you’re young, especially if you have a family.

It’s weird to think about death, especially if you’re young, healthy, and full of life. But forward thinking isn’t a bad thing when it comes to making sure the ones you love are set up right, in case something happens to you unexpectedly. Plus, you can save a lot of money buying life insurance when you’re young.

83%
The number of people who don’t get life insurance because they think it’s 3 times more expensive than it is.

Renters/Homeowners Insurance

Dealing with insurance right when you go freelance can be annoying, especially when you are figuring out a million other things, but it can save you money (and sanity) in the long run.

If you’re serious, you might want to check out a business property policy in case your personal policy doesn’t have enough coverage for your business stuff.

Even though it may seem like an extra expense you don’t feel like spending money on, it’s always better to be safe, not sorry – especially if something freaky happens, like a fire or a robbery.

We specialize in helping people who work for themselves get the right insurance. Have a question? Ask us. Know what you need? Get it.

18
The number of hours koalas sleep in a day. Not entirely relevant, but still a fun fact.