How to Adapt Insurance to Fit Your Life
The gig economy moves a lot of money in America. Uber, Lyft, DoorDash, TaskRabbit, and many other companies are part of this market—even if you’re working entirely as a freelancer.
This kind of work is profitable for everyone involved, but it comes with its own set of challenges. Without a traditional employer, the responsibility for protecting yourself against the unexpected falls entirely on you.
This includes health, auto, accident, and liability insurance, and even retirement. But don’t worry—there’s no need to panic.
We’ll show you the essential types of insurance for gig workers and how to plan wisely without breaking your budget.
Health Insurance
This is absolutely essential—especially when medical care can be outrageously expensive.
Going without health insurance is a risk not worth taking. Luckily, you can find plans on healthcare.gov and, depending on your income, even qualify for subsidies to lower your costs.
Freelancers and independent contractors can also explore options through professional associations, independent unions, or family plans.
A smart tip: take your time comparing plans and pay close attention to deductibles and annual out-of-pocket limits.
Auto Insurance
Do you use your car for work? In most cases, a personal-use insurance policy won’t cover you if an accident happens while working.
Start by checking whether the platform you use offers comprehensive coverage for commercial use.
If not, consider getting commercial auto insurance or a specific rideshare insurance policy designed for app-based drivers.
Liability Insurance
This one’s crucial for anyone providing in-person services like repairs, furniture assembly, cleaning, and more.
Imagine breaking something in a client’s home and having to pay for it out of pocket. Some platforms require you to carry liability insurance, while others offer basic coverage themselves.
If you work independently, it’s definitely worth getting your own policy.
Disability Insurance
Ever thought about what would happen if you got injured and couldn’t work? For gig workers, that could mean zero income.
Disability insurance replaces a portion of your income if you’re temporarily unable to work.
It might seem unnecessary—until you think about people who rely entirely on driving or deliveries. A sprained ankle could turn into a financial crisis.
Equipment Insurance
If you use expensive gear for work—like cameras, laptops, tools, or musical instruments—you should protect them against theft, loss, or damage.
This type of insurance is usually affordable and can often be added as a rider to other policies or purchased separately.
Life Insurance
If you have dependents, life insurance is something to seriously consider. As a self-employed worker, you don’t receive employer-sponsored benefits—so this responsibility falls to you.
Affordable options exist, especially term life plans, which provide coverage for a set period.
Professional Liability Insurance
If you work as a consultant, designer, writer, developer, or in any other creative or strategic role, professional liability insurance (also known as errors and omissions) protects you from claims over mistakes, negligence, or financial harm to a client.
It might sound extreme, but a poorly worded email or a vague contract could turn into a lawsuit.
How to Choose the Right Insurance for You
Every type of gig work has its own set of risks. A driver needs to prioritize auto insurance, while a freelance designer might need professional liability and equipment coverage.
It’s important to clearly understand what makes the most sense for you and your line of work. Here are some practical steps to choose wisely:
- List the risks involved in your type of work.
- Assess the financial impact of each risk (how much would it affect your life?);
- Compare insurance providers and read the fine print;
- Use online plan comparison tools and check reviews;
- If needed, speak with an independent broker who understands the gig economy.
Can You Deduct Insurance on Your Tax Return?
Yes! Many of these protections can be considered self-employment expenses—and are therefore deductible on your tax return.
This includes health insurance, liability insurance, and even auto insurance (proportional to business use), among others.
Talk to a tax advisor or use filing platforms tailored for freelancers, such as TurboTax Self-Employed or H&R Block.