5 Insurance Types Freelancers Should Have

Freelancing offers incredible freedom, but it also comes with unique risks. Without the safety net of employer-provided benefits, freelancers need to proactively protect their health, finances, and business. Insurance can feel overwhelming, but choosing the right coverage brings peace of mind and safeguards your livelihood. Here are five essential insurance types every freelancer should consider.

1. Health Insurance

Your health is your most valuable asset. As a freelancer, you don’t have access to group health plans, so securing individual health insurance is critical. A good plan covers doctor visits, hospital stays, prescriptions, and preventive care, ensuring you stay healthy without draining your savings.

Explore options through the Health Insurance Marketplace, private insurers, or professional associations that offer group-like plans for freelancers. Compare premiums, deductibles, and coverage to find a plan that fits your budget and needs. Prioritizing health insurance means you can focus on your work without worrying about unexpected medical bills.

2. Professional Liability Insurance

Mistakes happen, even to the most diligent freelancers. Professional liability insurance, also known as errors and omissions (E&O) insurance, protects you if a client claims your work caused them financial loss. Whether it’s a missed deadline, a coding error, or a miscommunication, this coverage can pay for legal fees, settlements, or damages.

For example, a graphic designer might face a lawsuit if a client believes a logo design infringed on a trademark. Professional liability insurance ensures you’re not personally footing the bill. It’s especially important for freelancers in fields like consulting, design, or writing, where errors can have significant consequences.

3. General Liability Insurance

General liability insurance covers incidents unrelated to your professional work but still tied to your business. If a client visits your home office and trips over a cord, or if you accidentally damage property while working on-site, this insurance can cover medical costs, repairs, or legal fees.

Even if you work remotely, general liability insurance is worth considering. It’s relatively affordable and provides broad protection against third-party claims, giving you confidence as you navigate client interactions or occasional in-person projects.

4. Disability Insurance

If an injury or illness prevents you from working, disability insurance replaces a portion of your income. Freelancers rely on their ability to work, and without a steady paycheck, a prolonged absence can be financially devastating. Disability insurance ensures you can cover living expenses while you recover.

Policies vary, so look for one that aligns with your income and work schedule. Short-term disability covers temporary conditions, while long-term disability is ideal for more serious issues. It’s a small investment for significant protection, especially for those without substantial savings.

5. Business Property Insurance

Your laptop, camera, or other equipment is the backbone of your freelance business. Business property insurance protects these assets from theft, fire, or other damage, whether you work from home or a co-working space. Unlike homeowner’s or renter’s insurance, which often excludes business-related items, this coverage is designed for your professional tools.

Take inventory of your equipment and estimate its value to determine the coverage you need. Some policies also cover data loss or business interruption, which can be a lifesaver if a crashed hard drive halts your work. With this insurance, you can replace essential tools quickly and keep your business running smoothly.

Final Thoughts

Insurance might not be the most exciting part of freelancing, but it’s a cornerstone of a secure and sustainable career. By investing in health, professional liability, general liability, disability, and business property insurance, you’re building a safety net that lets you focus on what you love—your work. Take time to research providers, compare quotes, and tailor your coverage to your unique needs. With the right insurance in place, you can freelance with confidence, knowing you’re prepared for whatever comes your way.