đź’Ľ The Self-Employed Insurance Challenge
No employer means no employer-sponsored coverage. You're responsible for health, disability, liability, and life insurance—all on your own dime. Here's how to get covered without breaking the bank.
Health Insurance Options
ACA Marketplace (Healthcare.gov)
Best for MostIncome-based subsidies can make coverage affordable. Can't be denied for pre-existing conditions. Open enrollment Nov-Jan, or qualify for special enrollment.
Cost: $0-$800+/month depending on income and plan tier
Health Insurance Through Professional Associations
Organizations like Freelancers Union, NASE, or industry-specific groups offer group rates. Quality and availability vary.
Best for: Those who don't qualify for ACA subsidies
Health Sharing Ministries
NOT insurance—members share costs. Lower monthly costs but not guaranteed coverage. Pre-existing conditions often excluded.
Caution: Research carefully; not regulated like insurance
Spouse's Employer Plan
If your spouse has employer coverage, getting added is often the cheapest option with the best benefits.
Best for: Married freelancers with employed spouses
Professional Liability Insurance
Protects you if a client sues over your work. Essential for consultants, designers, writers, developers, and anyone providing professional services.
E&O Insurance Covers:
- • Mistakes in your work
- • Missed deadlines causing client loss
- • Negligent advice
- • Legal defense costs
Typical Costs:
- • $500-$1,500/year for most freelancers
- • Higher for architects, engineers, medical
- • Some clients require $1M+ coverage
Where to get it: Hiscox, Next Insurance, Simply Business, The Hartford
Disability Insurance: Your Biggest Gap
1 in 4 workers will become disabled before retirement. For self-employed people, disability is catastrophic—no income AND medical bills.
Short-Term Disability
Covers 3-6 months. Good for recovery from surgery, illness, injury. $20-50/month.
Long-Term Disability
Kicks in after 90+ days. Covers years or until retirement. $50-200/month. Essential.
Rule of thumb: Get coverage for 60-70% of your income. "Own occupation" policies pay if you can't do YOUR job specifically.
Life Insurance
Same rules apply as employees: if people depend on your income, you need life insurance.
Self-Employed Considerations:
- • Income documentation: May need tax returns to prove income for large policies
- • Business debt: Include any business loans you've personally guaranteed
- • Key person insurance: If you have partners, protect the business from your death
- • Buy-sell agreements: Life insurance can fund partner buyouts
Self-Employed Insurance Checklist
- 1 Health insurance – ACA marketplace, spouse's plan, or association
- 2 Professional liability/E&O – If you provide services to clients
- 3 Disability insurance – Your most underrated need
- 4 Life insurance – If you have dependents
- 5 Business property – If you have equipment/inventory
The Bottom Line
Self-employed people need the same coverage as employees—but must arrange and pay for it themselves. Priorities: health insurance first (ACA or spouse's plan), then disability (your biggest hidden risk), then liability (if you serve clients), then life (if you have dependents). Budget $300-$700/month total depending on your situation.