5 Types Of Insurance Every Self-Employed Person Needs

Being self-employed is freeing, but it is definitely different from the usual 9 to 5 routine. If you’ve recently become self-employed, then you might have found yourself looking up local licensing and permit laws, but what about insurance?

You might be considering a general business insurance policy, but did you know there are other forms of insurance you should have if you are self-employed? In this article, we’re going to highlight the top five kinds of insurance for the self-employed. Read on.


1. Business Insurance

Business insurance is available in specialized policies, such as home-based business policies and traditional property and liability coverage. Other types of business insurance might include business income insurance, commercial auto insurance, umbrella insurance, and even data breach insurance. Errors and omissions policies might be used by certain professionals, as well.

Depending on your field or area of expertise, you might need certain kinds of insurance to cover you, and niche business insurance can help. A little bit of research and speaking with a business insurance agent can likely yield the right policy for your needs.

2. Liability

A business liability policy is important to cover you in the case of someone else’s bodily injury or property damage. In essence, a liability policy protects you in the case someone tries to claim negligence. These policies can save you big bucks in terms of out of court settlements, litigation, and judgments.

While being self-employed is freeing, it does change things. If something happens to someone while they are on your property, whether commercial or personal, then you could be responsible in the eyes of the law. Having liability insurance can truly save you from a lot of trouble in the long run.

3. Disability

If you were formerly employed for someone else, then you might already be familiar with the benefits of having a disability policy in place. You never know when the unthinkable can happen. In the event that you are injured, how would you keep your finances on track?

With a disability policy, you can have up to around 60% of your income provided as you’re getting back on your feet after an accident. If you are self-employed, you should most definitely have a disability policy in place. We recommend starting research today to find the best disability policy for your needs.

Self-employed person consults with a doctor

4. Health Insurance

One of the perks for working for someone else is usually health insurance. Health insurance is notoriously expensive, but it’s so important that self-employed people have it. You need to be able to get routine check-ups, dental care, and emergency care without worry.

One advantage about having health insurance as a self-employed person is that you can write off the cost in the form of tax deductions.

Groups such as Freelancer’s Union and the National Association for the Self-Employed offer a wealth of information on self-employed health insurance, as well as their own competitively priced rates.

5. Life Insurance

Last but not least, if you are self-employed, you should certainly have a life insurance policy in place. Many people working for employers will have these policies in place, but if you’re self-employed, then you’re going to have to get your own life insurance policy. A bit of research on term and whole life will help you decide what you need.

No matter your age, getting a life insurance policy is smart, and it can save money and stress down the road.


Being self-employed gives you an amazing level of versatility and flexibility, but it’s so important to remember that you are still responsible for having insurance. Business insurance is generally a good idea for anyone who is self-employed, while health insurance, life insurance, and disability are policies that everyone should have.

When you’re self-employed, things do change a bit, and it can be especially confusing if you’ve just come out of the corporate world. Working for someone else, you might have all of these things administered on your behalf, but when you take the self-employed route, you are in charge of handling the insurance.

The good news is that many forms of insurance can be used as tax deductions, but of course, the most important thing is to ensure that you are covered in every aspect.