Freelance Insurance 101: Managing the Moving Parts - Starting With Your Car

This post was written by Hyke. Hyke is an all-in-one business administration platform for the top freelancers. From LLC formation to taxes, Hyke takes away all the pain with paperwork and helps you stay safe, compliant and save on taxes.


When you work as an employee, you don’t often have to think about covering your own health, liability, or property insurance. That’s because your employer takes care of those needs. For people who prefer working for themselves, however, the responsibility of getting all of the insurance they need falls on their shoulders.

Are you a self-employed freelancer? Then you must purchase insurance to protect yourself, and you will likely need more types of coverage than an average employee would. Hey, it’s just part of the cost of being your own boss—and we think it’s worth it!

What are the types of insurance that you’ll need to have in place when you’re a freelancer? Here’s the breakdown:

  1. Health insurance

  2. Business property insurance

  3. Liability Insurance

  4. Car Insurance

Why do you need these insurance policies, and how much will they cost you? Keep reading, as we’ll break it all down for you. In this final installment, we dive into car insurance, and look beyond insurance to the many things a freelancer has to sort out to keep their business in check. Check out installments one through three to round out your freelance insurance knowledge!

Car Insurance

Do you use your car for business, as well as for personal use? Then you’re like a lot of self-employed freelancers! One minute, you’re using your vehicle to visit clients or transport supplies, and the next, you’re using it to pick up groceries and visit friends. In this case, you need to be sure that your auto insurance will protect you from accidents that might happen while you’re out doing business.

If you already have a personal auto policy, it provides protections for some business use of your vehicle, so that’s definitely a plus. The problem, though, is that your personal policy doesn’t provide coverage if you use your car primarily for business. And it won’t provide coverage for any vehicle that’s owned by your business.

So, what can you do?

  • Review your policy and talk to your insurance agent or auto insurer. They might recommend purchasing a separate business auto insurance policy, or you might be able to get a special endorsement that will cover your business use.

  • No matter what, make sure your insurer knows that you use your car for business purposes, in addition to personal use and driving to and from the office. Failing to inform your insurer might cause them to cancel your policy if a claim is brought forth that reflects a business use (getting into an accident while on a business trip, for example).

Managing Your Freelance Business

A lot goes into managing a successful freelance business. Beyond insurance, there are other papers that you need to file regularly with the government in order to keep your company active, and you need to keep track of your finances so you can make the most of those deductions come tax season.

Thankfully, with services like Hyke, which helps guide you through the process of forming and maintaining a freelance business, you can rest assured that you’ve covering all of your bases. Consider checking out their helpful resources for more information, and read through the perks of signing up for an account when you’re ready to take your business to new heights.

Don’t Neglect Getting the Right Insurance for Freelancers!

This is a lot of information to take in, but it’s important to consider as you establish your business and keep it going strong. It’s never late to start protecting yourself and your livelihood. Take it one insurance type, and one insurance policy, at a time. Before you know it, you’ll have all of the protection you need to run your business with complete peace of mind!

If you have any questions about which coverages would be best suited for your business, Bunker’s insurance agents are always available to chat! Give us a call at 877-968-9108, email us at hello@buildbunker.com, or head to www.buildbunker.com to live chat and shop policies, with online quotes in under 5 minutes.

The Takeaways

  1. Your car insurance may not cover accidents that occur during the course of business - check with your insurance provider to learn exactly what you need

  2. Freelancers can often obtain the coverage they need by adding an endorsement to their existing auto insurance

  3. You can be penalized for failing to tell your insurer that your car is used for business purposes, even if they’re circumstantial.

  4. For help managing all of the intricate details of starting and maintaining a freelance business, visit Hyke!