What Insurance Policies Do All Freelancers Need?

Recently, Freelancers Union reported that “50% of U.S. jobs are compatible with remote work arrangements.” It is no surprise, then, that so many companies are hosting video meetings and conferences, allowing employees to be location-independent, and hiring more contractors/freelancers than ever before. When working as a freelancer, enjoying this kind of freedom is exciting. However, along with the perks and freedom to work when and where you want, there are also some important considerations. One such consideration is equipping yourself with the right kinds of insurance. If you are now freelancing, or are thinking about freelancing in the future, explore three categories of insurance that you should definitely have.

Self-employed health insurance

When employed in a traditional role, full-time staff members often receive employer-sponsored health insurance. Because companies can get lower group rates on insurance, and because they often pay a hefty chunk of the monthly premium, employees are able to enjoy low monthly premiums. When you are a freelancer, this perk is non-existent. Instead, those who are self-employed must find a health insurance option that works best for their current situation. Since medical bills for basic illnesses and injuries can soar into the thousands of dollars, not having this kind of coverage is incredibly risky. Some of the best health insurance options for freelancers include taking advantage of COBRA (if you recently left your corporate job), adding yourself to your partner’s insurance plan, signing up for a plan through HealthCare.gov, or exploring plan options through the Freelancer’s Union.

Life insurance

In 2018, MarketWatch reported that over 40% of Americans do not have life insurance coverage of any kind. While getting a life insurance policy is critical for nearly everyone, it can be even more important for freelancers. Why? Since freelancers don't have access to the free or inexpensive life insurance options available through traditional employment, they need to find a policy on their own. Thankfully, among all kinds of insurance that you can buy, life insurance is relatively inexpensive. For between $15-$40 per month, you can ensure that your loved ones are financially protected. To compare policies, host a digital meeting with one or more local providers to discuss policy needs and pricing.

General and/or professional liability insurance

Aside from the immediate protection of your personal health, well-being, and family, having insurance that protects your freelance business and finances is also a must-have. Whether you offer your services via video conferencing, or you own an eCommerce business, keeping yourself safe from legal issues is super important. Two related insurance policies that achieve these goals are general liability insurance, and professional liability insurance. The first (general liability) protects freelancers from events such as property damage, libel, slander, copyright infringement, and third-party injuries. Professional liability insurance, however, covers an individual in the event of a professional error in one’s services.

Although you may ultimately pay more than you would as a full-time, traditional employee, having adequate insurance coverage is crucial. Not only could one personal or professional claim put you out of business, but it could also lead to permanent financial damage. To get the best deals on your insurance plans, speak with trusted experts and compare multiple quotes.