What Insurance Do Freelancers Actually Need?
Going independent means losing the safety net of employer-provided benefits. That doesn't mean going without — it means building your own coverage stack.
Health Insurance
This is non-negotiable. Without an employer plan, you'll need to get coverage through the ACA Marketplace, a professional association, or a spouse's plan. Costs vary significantly by state and income level — subsidies may reduce your premium substantially.
Professional Liability (E&O) Insurance
Also called Errors & Omissions insurance, this covers you if a client claims your work caused them financial harm. Essential for consultants, designers, developers, and anyone providing advice or professional services.
General Liability Insurance
Covers bodily injury and property damage claims. Required by many clients and co-working spaces. Even if you work from home, it's worth having if you meet clients in person.
Disability Insurance
Your ability to work IS your business. If you get sick or injured and can't work, there's no employer sick pay. Long-term disability insurance can replace 60–70% of your income while you recover.
Frequently Asked Questions
What insurance do freelancers actually need to get started?
Health insurance is non-negotiable since there's no employer plan to fall back on. Beyond that, professional liability (E&O) is essential if you provide advice or professional services, and general liability is worth having if you ever meet clients in person.
Do I need general liability insurance if I work from home?
It's still worth having if you meet clients in person, even occasionally. General liability covers bodily injury and property damage claims, and many clients and co-working spaces require proof of it.
Professional liability vs. general liability — what's the difference?
Professional liability (errors & omissions) covers claims that your work or advice caused a client financial harm. General liability covers bodily injury and property damage instead, like a client tripping in your studio.
Why does disability insurance matter more for freelancers?
Because there's no employer sick pay to fall back on. If you get sick or injured and can't work, your income stops immediately unless you have your own coverage.