Going freelance means trading a steady paycheck for freedom — but it also means losing the insurance safety net that comes with full-time employment. No employer health plan, no group disability coverage, no paid sick leave. You're on your own.

The good news: building your own coverage stack isn't as complicated or expensive as it sounds. Here's exactly what you need and what to expect to pay.

1. Health Insurance (Non-Negotiable)

This is the most important and usually most expensive part of your freelance insurance stack. Without an employer plan, your options are:

  • ACA Marketplace: Plans available at healthcare.gov. If your income is below 400% of the federal poverty level, you may qualify for premium subsidies that significantly reduce your cost.
  • Spouse or partner's plan: If your partner has employer coverage, getting added to their plan is often the most cost-effective option.
  • Professional associations: Some industry groups offer group health rates to members. Worth researching for your specific field.
  • COBRA: If you recently left a job, you can continue your employer's coverage for up to 18 months — but you pay the full premium plus a 2% admin fee, which is often expensive.

Average cost for a self-employed individual: $400–$600/month before subsidies.

2. Professional Liability Insurance (E&O)

Also called Errors & Omissions (E&O) insurance, this covers you if a client claims your work caused them financial harm — a missed deadline that cost them a deal, a design error, bad advice, a software bug.

If you provide any kind of professional service or advice, you need this. Many corporate clients require proof of E&O coverage before they'll sign a contract with you.

Typical cost: $500–$1,500/year depending on your field and revenue. Tech consultants and attorneys pay more; writers and designers typically pay less.

3. General Liability Insurance

General liability covers bodily injury and property damage claims — if a client trips at your home office, or you accidentally damage equipment at a client's site. Most co-working spaces and many clients require this.

Typical cost: $400–$800/year for a basic $1M policy.

4. Disability Insurance

This is the coverage most freelancers skip — and the one they most regret not having. If you get sick or injured and can't work, there's no employer sick pay. No paycheck. Nothing.

Long-term disability insurance typically replaces 60–70% of your income after an elimination period (usually 90 days). Combined with a solid emergency fund, it means a health crisis doesn't become a financial crisis.

Typical cost: 1–3% of your annual income per year.

5. Life Insurance

If anyone depends on your income — a spouse, children, aging parents — you need life insurance. A 20-year term policy provides coverage during the years when your family is most financially vulnerable, typically at a surprisingly low cost.

A healthy 35-year-old freelancer can get $500,000 of 20-year term coverage for $25–$40/month.

6. Cyber Liability (For Tech & Data-Handling Freelancers)

If you handle client data, build software, or manage online systems, a data breach or cyberattack can result in significant liability. Cyber liability insurance covers the costs of responding to a breach, notifying affected parties, and defending against related lawsuits.

Typical cost: $500–$1,500/year for freelancers.

What to Budget

A complete freelance insurance stack — health, E&O, general liability, disability, and life — typically runs $8,000–$15,000/year depending on your income, location, and profession. Factor this into your freelance rate calculation: you need to earn enough to cover these costs that your employed peers don't pay out of pocket.

Calculate Your Costs

Use our Freelancer Insurance Calculator to get a personalized estimate based on your income, profession, and situation.