Self-Employed? Don’t Ignore THESE Insurance Types!

Being your own boss is rewarding—but it also means you’re responsible for protecting yourself and your business. Unlike traditional employees, self-employed individuals don’t have employer-provided insurance safety nets. That makes choosing the right insurance crucial to safeguard your income, health, and future.

If you’re self-employed, here are the essential insurance types you shouldn’t overlook.

1. Health Insurance

Without an employer’s group plan, you must secure your own health coverage. Medical bills can be financially devastating without insurance.

Explore marketplace plans or private insurers.
Consider Health Savings Accounts (HSAs) if paired with high-deductible plans.

2. Disability Insurance

If illness or injury prevents you from working, disability insurance replaces a portion of your income.

Look for own-occupation coverage, which pays if you can’t perform your specific job.
This is often overlooked but vital for protecting your livelihood.

3. Professional Liability Insurance (Errors & Omissions)

If your work involves advice, services, or expertise, this insurance protects you from lawsuits claiming negligence or mistakes.

Essential for consultants, freelancers, therapists, and many others.
Covers legal defense and settlements.

4. General Liability Insurance

This protects against claims of bodily injury or property damage caused by your business operations.

Important if you meet clients in person or operate from a physical space.
Covers medical costs, legal fees, and damages.

5. Business Property Insurance

If you own equipment, inventory, or office space, this insurance protects against theft, fire, or damage.

Even if you work from home, you might want coverage for expensive gear.
Review your homeowner’s policy to check for gaps.

6. Life Insurance

If others depend on your income, life insurance ensures they’re financially secure if something happens to you.

Term life insurance is affordable and straightforward.
Consider your family’s needs and debts.

7. Retirement Plans

While not insurance, setting up a self-employed retirement plan like a SEP IRA or Solo 401(k) is crucial for long-term financial security.

Tips for Choosing Insurance When Self-Employed

Assess your risks carefully based on your profession and lifestyle.
Shop around and compare quotes.
Consider working with an insurance broker who understands self-employed needs.
Review your policies annually and adjust as your business grows.

Final Thoughts

Insurance might feel like an extra expense when you’re building your business, but it’s an investment in your stability and peace of mind. Don’t ignore these essential types—protect yourself so you can focus on growing your dream.