A workforce report from iHire on the rise of independent work finds that most independent workers go without the basic benefits that traditional employees take for granted. The survey of thousands of US workers documents strong interest in freelancing alongside a wide gap in coverage.
The appeal is not in question, with a majority of respondents saying they find freelance or project-based work attractive. The concern is what these workers give up, since employer benefits do not follow you into self-employment.
What The Report Actually Found
According to the iHire data, only about 40 percent of independent workers have access to medical insurance, and roughly 25 percent have dental coverage. The figures thin out sharply from there, with about 20 percent holding life insurance and only around 5 percent carrying short-term disability protection.
The report pairs those gaps with clear enthusiasm for the model. A majority of surveyed workers found freelance or project-based work appealing, and a large share are already doing it or have done it before.
Why This Matters For Self-Employed Workers
Benefits are not a perk for independents; they are a personal expense and a personal risk. A freelancer without disability coverage who cannot work for a month has no paycheck and no safety net, which turns a health setback into a financial one.
The thin uptake of disability and life coverage is the most exposed spot. Many solo workers insure their phones or gear but not their ability to earn, even though that income is the entire business.
What Self-Employed Workers Should Do Next
Start with a health plan, comparing marketplace coverage with any option through a spouse or a professional association before defaulting to going without coverage. Remember that self-employed workers can generally deduct their health insurance premiums, which lowers the real cost.
Then close the riskiest gaps in order, usually an emergency fund first, then individual disability coverage that replaces income if you cannot work, and term life insurance if anyone depends on you. Owners can see how these missing safety nets play out over a career in our report on the freelancer retirement savings gap.
What To Watch Next
Watch the growth of portable-benefits programs and association plans aimed at independent workers, since several states and platforms are testing ways to attach benefits to the person rather than the employer. Wider availability would directly narrow the gaps highlighted in this report.
Watch health insurance costs as well, because rising premiums are the single biggest reason solo workers skip coverage. If those costs keep climbing, the share of independents going without basic protection could grow rather than shrink.
Photo by Towfiqu barbhuiya: Unsplash
