Freelancers and online entrepreneurs enjoy the freedom of being their own boss, but that freedom comes with responsibilities—especially when it comes to insurance coverage. Unlike traditional employees, freelancers don’t have the safety net of employer-provided health insurance, disability coverage, or retirement benefits.
Whether you’re a digital marketer, e-commerce store owner, SaaS entrepreneur, or freelance designer, the right insurance plans can protect your income, health, and business. In this guide, we’ll cover the best insurance plans for freelancers and online entrepreneurs in 2025 in the USA and UK, along with what coverage you should consider.
Why Freelancers & Online Entrepreneurs Need Insurance
Working independently means you face risks such as:
- Medical emergencies without employer-provided health insurance.
- Loss of income if you’re unable to work due to illness or injury.
- Liability claims from clients or customers.
- Unexpected business interruptions (tech failures, cyberattacks, or lawsuits).
The right insurance plan ensures your income and lifestyle remain protected even when the unexpected happens.
Best Insurance Plans for Freelancers in the USA (2025)
1. Health Insurance – ACA Marketplace Plans
- Freelancers can purchase health insurance through the Affordable Care Act (ACA) marketplace.
- Options range from Bronze (low premium, high deductible) to Platinum (high premium, low deductible).
- Subsidies are available depending on income.
- ✅ Why It’s Important: Protects against high medical costs, a must-have in the USA.
2. Self-Employed Health Insurance Plans
- Providers like Oscar, Cigna, and Blue Cross Blue Shield offer plans tailored for independent workers.
- Includes coverage for prescriptions, virtual care, and preventive services.
3. Disability Insurance (Income Protection)
- Offered by companies like Guardian, Mutual of Omaha, and Breeze.
- Provides monthly payments if illness or injury prevents you from working.
- ✅ Great for freelancers whose income depends solely on their ability to work.
4. Liability Insurance (General + Professional)
- Providers: Hiscox, Next Insurance, and State Farm.
- Covers you if a client sues for negligence, missed deadlines, or damages.
- ✅ Essential for freelancers dealing with contracts, marketing, and consulting.
5. Cybersecurity Insurance
- Protects against data breaches, hacking, and online fraud.
- Providers: Chubb, AIG, Hiscox.
- ✅ Especially critical for online entrepreneurs running e-commerce or SaaS businesses.
Best Insurance Plans for Freelancers in the UK (2025)
1. Private Health Insurance
- NHS offers free healthcare, but freelancers often choose private health insurance for faster access and more options.
- Providers: Bupa, AXA PPP, and Vitality Health.
- ✅ Important for reducing wait times for treatments.
2. Income Protection Insurance
- Covers lost income if you cannot work due to illness or injury.
- Providers: Aviva, Legal & General, Royal London.
- ✅ Provides peace of mind for freelancers without sick pay.
3. Professional Indemnity Insurance
- Protects against legal costs if a client claims your work caused financial loss.
- Providers: Simply Business, Hiscox, Direct Line.
- ✅ Commonly required by clients in contracts.
4. Public Liability Insurance
- Protects if someone is injured or property is damaged during your business activity.
- Providers: Aviva, AXA, Zurich.
5. Cyber Insurance
- Growing necessity for online entrepreneurs.
- Covers data loss, hacking, and GDPR-related fines.
- Providers: Hiscox, Markel, Travelers.
Other Insurance Types Worth Considering
- Life Insurance – Provides financial security for your family.
- Business Interruption Insurance – Helps cover lost income if your operations are disrupted.
- Equipment Insurance – Protects laptops, cameras, and other business tools from theft or damage.
Tips for Choosing the Right Insurance as a Freelancer
- Assess Your Risks – Consider whether health, liability, or income loss is your biggest risk.
- Compare Providers – Use comparison tools like Policygenius (USA) or CompareTheMarket (UK).
- Bundle Plans – Some insurers offer discounts for combining multiple policies.
- Read the Fine Print – Check exclusions carefully (especially in health and cyber insurance).
- Review Annually – As your business grows, your insurance needs will change.
Cost of Insurance for Freelancers
- USA: Health insurance can range from $300–$700/month, disability insurance from $50–$200/month, liability insurance from $20–$100/month.
- UK: Private health insurance starts around £40/month, income protection around £20–£80/month, indemnity insurance around £15–£60/month.
Conclusion
In 2025, freelancers and online entrepreneurs must take insurance seriously. While it may feel like an extra expense, the right plan can protect you from devastating financial losses.
- In the USA, focus on health, disability, and liability insurance.
- In the UK, prioritize income protection, private health, and indemnity coverage.
By investing in the right insurance plans, you safeguard not only your business but also your future as an independent worker.