Do You Need Insurance If Self Employed?

  • John A. Osborne
  • Dec 30, 2022
Small Business Insurance Vermont

Being self-employed comes with many benefits, including being your own boss, setting your own schedule, and having control over your income. However, one thing that many people overlook when they start their own business is the importance of insurance. Whether you’re a freelancer, contractor, or small business owner, having insurance can protect you from unexpected expenses and legal issues that can arise while you’re working. In this article, we’ll explore the different types of insurance you might need as a self-employed person and why they’re important.

As a self-employed person, you’re responsible for everything related to your business, including providing your own benefits and insurance coverage. While this can be overwhelming, it’s important to remember that insurance is a vital part of protecting yourself and your business. Without insurance, you could be exposed to financial and legal risks that could put your business at risk. Here are some types of insurance you might need as a self-employed person:

Health Insurance

One of the biggest benefits of being employed by a company is having access to health insurance. As a self-employed person, you’ll need to find your own health insurance coverage. This can be a challenge, but there are many options available, including:

  • Individual health insurance plans
  • Health savings accounts (HSAs)
  • Association health plans
  • Short-term health insurance

Having health insurance is important not only for your own well-being but also for the well-being of your business. If you get sick or injured and can’t work, having insurance can help cover your medical expenses and prevent your business from suffering.

Disability Insurance

Disability insurance is designed to provide income replacement if you’re unable to work due to an injury or illness. As a self-employed person, you won’t have access to disability insurance through an employer, so you’ll need to find your own coverage. Disability insurance can help you pay your bills and keep your business running if you’re unable to work for an extended period of time.

Liability Insurance

Liability insurance protects you from legal claims that may arise from your business activities. For example, if a client sues you for negligence or breach of contract, liability insurance can help cover your legal fees and any damages you’re required to pay. Liability insurance is especially important if you work in a high-risk industry, such as construction or healthcare.

Property Insurance

If you own or rent a workspace, property insurance can help protect you from damage or loss due to theft, fire, or natural disasters. Property insurance can also cover your business equipment, such as computers and tools. Without property insurance, you could be left with a hefty bill if your workspace or equipment is damaged or stolen.


As a self-employed person, insurance is essential for protecting yourself and your business. While it can be daunting to navigate the world of insurance as a solo entrepreneur, there are many resources available to help you find affordable coverage. By investing in insurance, you can have peace of mind knowing that you’re protected from unexpected expenses and legal issues that can arise while you’re working.

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