Insurance for Freelancers and Gig Workers

The gig economy isn't a trend anymore — it's how millions of Americans work. Whether you're a freelance designer, a rideshare driver, a consultant, or a delivery courier, being your own boss comes with a trade-off most people underestimate: you're also your own HR department. That means insurance is entirely on you. Here's what freelancers and gig workers need to know about protecting themselves, their income, and their livelihood.

The Insurance Gap for Self-Employed Workers

When you work for a company, your employer typically provides (or subsidizes) health insurance, workers' compensation, disability coverage, and liability protection. As a freelancer or gig worker, none of that exists unless you arrange it yourself. The risks don't disappear just because you don't have an employer — they actually increase:

• No employer health plan: You need to find and pay for your own health insurance.
• No workers' comp: If you're injured on the job, there's no automatic coverage for medical bills or lost income.
• No disability coverage: If an illness or injury prevents you from working, your income stops immediately.
• Personal liability exposure: If your work causes damage or a client sues you, your personal assets are at risk.

Ignoring these gaps isn't a strategy — it's a gamble. And the stakes are your savings, your home, and your ability to earn a living.

Essential Insurance for Freelancers

Not every freelancer needs the same coverage, but here are the policies worth evaluating:

Health Insurance This is non-negotiable. Options include:

• ACA Marketplace Plans: Available during open enrollment (or with a qualifying life event). Subsidies based on income can make these very affordable for freelancers with variable earnings.
• Health Care Sharing Ministries: An alternative for some, though these aren't technically insurance and don't have the same regulatory protections.
• Spouse's Employer Plan: If your partner has employer-sponsored insurance, this is often the most cost-effective option.
• Short-Term Plans: Temporary coverage that's cheaper but offers less comprehensive benefits. Best as a bridge, not a long-term solution.

Professional Liability (Errors & Omissions) If your work involves advice, design, code, writing, or any deliverable that a client could claim caused them financial harm, professional liability insurance protects you. A single lawsuit — even a frivolous one — can cost $10,000+ in legal defense alone. Premiums for freelancers typically run $300–$1,500 per year depending on your field and revenue.

General Liability If clients visit your workspace, you work on-site at client locations, or your work involves physical property, general liability covers bodily injury and property damage claims. This is especially important for photographers, event planners, contractors, and anyone who works in person.

Disability Insurance This replaces a portion of your income (typically 60%) if you can't work due to illness or injury. For freelancers, this is arguably the most underappreciated coverage. Your ability to earn is your most valuable asset — and the one most freelancers leave completely uninsured.

Commercial Auto Insurance If you use your personal vehicle for business (deliveries, client visits, transporting equipment), your personal auto policy may not cover accidents that occur during business use. A commercial auto policy or business use endorsement closes this gap.

Insurance for Gig Platform Workers

If you work through platforms like Uber, Lyft, DoorDash, or Instacart, your insurance situation has specific nuances:

• Rideshare drivers need a rideshare endorsement or hybrid policy to cover the gap between personal and commercial use.
• Delivery drivers face similar gaps — your personal auto policy likely excludes deliveries for pay. Some platforms offer limited coverage, but it's rarely sufficient.
• Platform-provided insurance is almost always secondary and limited. It's designed to protect the platform, not you. Read the fine print on whatever coverage your platform claims to provide.

How to Prioritize on a Budget

If you can't afford everything at once, here's a reasonable priority order:

1. Health insurance — the financial devastation of an uninsured medical event is catastrophic.
2. Auto insurance with proper endorsements — if you drive for work, this is immediate and essential.
3. Professional liability — if your work could result in client lawsuits.
4. Disability insurance — protects your income, which funds everything else.
5. General liability — important but lower priority if you work remotely and don't interact with physical property.

Tax Benefits of Insurance for the Self-Employed

Here's a silver lining: many insurance premiums are tax-deductible for freelancers and gig workers.

• Health insurance premiums are deductible on your personal tax return (not as an itemized deduction — it's an above-the-line deduction, which is better).
• Business insurance premiums (professional liability, general liability, commercial auto) are deductible as business expenses on Schedule C.
• Keep records of all premiums paid. Your accountant will thank you.

Conclusion

Freelancing offers freedom, but that freedom comes with responsibility — including the responsibility to insure yourself against risks that traditional employees never think about. The good news is that coverage is available, increasingly affordable, and often tax-deductible. The key is knowing what you need and not putting it off. Want help figuring out the right coverage for your freelance or gig work? Talk to Truvo — we help self-employed workers find the right policies without the corporate overhead.