Question
What insurance do I need as a freelancer?
Short answer
Health coverage first, since no employer provides it. After that, it depends on the work: professional liability if you give advice or build things for clients, general liability if you work at client sites, and cover for your equipment.
For you
- Health insurance from the marketplace or a spouse's plan. Self-employed people can often deduct the premiums.
- Disability insurance, because no employer plan replaces your income if you can't work.
For the work
- Professional liability (E&O) if a client could blame your advice, design or code for their losses. Consultants, designers and developers usually need this first.
- General liability if you work at client sites or meet clients in person. Many client contracts require it and ask for a certificate of insurance.
- Your equipment: a home or renters policy usually covers business equipment only up to a small amount, often $2,500. A business owner's policy or inland marine cover fills the gap.
- Your car: a personal car policy may not cover driving that is part of the job, like deliveries. Tell your insurer.
An LLC doesn't replace insurance
An LLC can keep business debts away from your personal assets, but it usually won't protect you from claims about your own professional mistakes. Workers' compensation usually only becomes required once you hire employees, and the rules vary by state.
This is general information about how US policies usually work. Your own policy's wording and your state's rules decide the details.