Learn the four essential coverages every freelancer, consultant, and contractor in Canada should know — and how to get protected fast.
by Lindsay Byrka | B.A., B.Ed, CFP® | Vice President
If you’re self-employed in Canada, you may be one illness, dental emergency, or unexpected injury away from a serious financial setback. Without the safety net of employee benefits, even routine health expenses can feel overwhelming.
So, what are your options?
At Immix Group, we work with hundreds of small business owners, contractors, and consultants across Canada — many of whom don’t qualify for traditional benefit plans. Whether you’re just starting out or managing a thriving independent business, protecting your health, income, and business continuity is one of the smartest investments you can make.
Just because you’re self-employed doesn’t mean you can’t access insurance protection similar to what is offered under an employee benefits program.
You might be a contractor and not eligible for benefits, a self-employed professional, or an owner-operator of a small business.
There are a few key areas where it is important to ensure you have adequate coverage in place. Our focus is on areas that are commonly covered through an employer-sponsored plan, plus the often-overlooked business overhead expense insurance.
The Reality for Self-Employed Canadians
Why Going Without Coverage Can Cost More Than You Think
A recent statistic in the March 2025 Labour Force Survey noted that in Canada most self-employed individuals are not covered by health, dental and disability insurance, despite experiencing more financial risk than employees and being generally more vulnerable to changing economic conditions.
Specifically, in looking at those who are “incorporated without employees”, around 25% have disability insurance, ~37% have a dental plan, and ~45% have extended healthcare.
It is not surprising that self-employed workers with “larger and more established businesses” are more likely to have insurance in place. However, the number is still under 50%!
- Only 25% of self-employed Canadians have disability insurance
- 37% have a dental plan
- 45% have extended health coverage
Extended Health and Dental Care
What Self-Employed Canadians Need Most — and Often Miss
If you are self-employed, we recommend exploring these key areas:
- Extended Health and Dental Care
- Health Spending Accounts
- Disability Insurance
- Business Overhead Expense Insurance
While the Immix Group focuses on working with Canadian small and medium sized businesses with employees, many of those in our Client Community are self-employed. Often, we work with these clients to put protections in place similar to those under robust employer-sponsored programs.
Without an employer plan, most people pay out of pocket — and often overpay.
Extended Health and Dental Care plans are easy to implement
This is the most obvious missing piece as this coverage forms the cornerstone of many employee benefit programs. Specifically, the most highly claimed items are:
- Prescription drugs
- Vision expenses such as glasses and contact lenses
- Professional practitioners (massage, physio, chiropractor, mental health therapists etc)
- Dental care expenses
Many individuals and families without extended health and dental coverage absorb these costs out-of-pocket as the cost per item tends to be low to moderate. However, these expenses can add up, especially if a medical or dental concern arises that requires ongoing treatment. Transferring the risk for these expenses to an insurance provider is prudent financial planning.
As well, extended health care nearly always includes coverage for emergency medical expenses incurred while traveling out of country. This is a huge perk and for many people the inclusion of this item alone makes it worth the cost.
Keep in mind with these plans, you are never locked into a long-term contract. You pay month to month and can cancel at any time. If your business grows and you add employees, you may wish to shift to a more formal employee benefits program.
Whether you’re managing family expenses or just want to avoid surprise bills, transferring these risks to a trusted insurance provider can be a smart part of your financial planning.
Ready to compare your options?
Explore Individual Health Plans Built for Self-Employed Canadians
No pressure — just a chance to see what’s possible, at your own pace.
Health Spending Accounts: a tax-advantaged approach
Tax-Smart Coverage That Flexes with Your Needs
Even if you decide to establish an insured extended health and dental program, you may have medical and dental expenses beyond the reimbursement limits of your plan. This is quite common, with things such as major dental procedures, orthodontics or practitioner visit costs exceeding common coverage limitations. Or, if you don’t have any insured coverage at all for certain items. This is where a Health Spending Account, a form of a private health services plan (PHSP), may be a good option.
When structured correctly per the CRA, eligible medical and dental expenses and associated administrative costs are deductible to the business. This may offer significant savings compared with paying for the same expenses with after-tax personal dollars.
In a recent article, we provided the “101” on Health Spending Accounts. While these are often an employee benefit most commonly acting to supplement an insurance plan, the same concept can be used by self-employed individuals who meet the right criteria. It is important to understand how the CRA views these accounts, to ensure you are onside with all rules.
We are happy to help you navigate whether establishing a Health Spending Account is the right approach for you. Our provider of choice is myHSA, where you can find great information on these plans.
Curious if an HSA is the right fit for your business structure?
Explore Your Options with Immix Group
Disability insurance is “income replacement” coverage
Protecting Your Income When Life Takes a Turn
It is referred to as “income replacement” insurance for a reason. In the event you become sick or injured and you’re no longer able to work, disability insurance provides an ongoing monthly benefit payment intended to replace your lost earnings. For many small business owners or self-employed professionals, staying healthy is essential to the business continuing to produce revenue.
If you are self-employed, you may not be eligible for any EI Sickness benefits via Service Canada, to which employees are usually entitled. This provides 55% of weekly earnings, up to a maximum, for up to 26 weeks for eligible applicants. For those who are self-employed, you have to opt into this program and pay premiums, and meet certain requirements to be eligible.
It’s essential to protect yourself in this area. As we have written about extensively in the past, disability insurance is commonly overlooked and misunderstood, despite how crucial it is to ensure you are adequately covered. It’s a key component of comprehensive group benefits programs. If you do not have any form of disability insurance in place, we highly recommend discussing this with a qualified advisor.
Common Questions About Disability Insurance
If you’re not part of an employee benefits plan, you may have no income support unless you’ve opted into EI. Disability insurance fills that gap, replacing a portion of your income so you can focus on recovery — not just bills.
Not at all. Most claims come from everyday issues — like back injuries, anxiety, or health conditions that affect office workers, creatives, and consultants alike.
It depends on your age, income, and coverage preferences — but many clients are surprised at how affordable it is. Often, it costs less than expected and can save you from months of lost income.
If you’re medically unable to work, your plan provides monthly payments to help you manage life’s essentials — rent, groceries, business expenses, and more.
That’s where we come in. At Immix Group, we’ll walk you through the options and help you find coverage that matches your needs — without overpaying.
Want to see how disability coverage could protect your income?
Explore Individual Disability Plans with Immix Group
It’s simpler and more flexible than you might think.
Business Overhead Expense Insurance
What Is BOE Insurance — and Who Needs It?
For business owners, a product exists called Business Overhead Expense (BOE) insurance which is exactly as it sounds: BOE covers ongoing fixed expenses such as rent, utilities and property taxes.
RBC Insurance provides this coverage, which is for those whose income depends on their ‘personal and regular attention’ to duties and who bear the cost of maintaining the expenses named above. The policy pays while you are disabled (per the contract wording) and therefore unable to continue in your business and generate income. While BOE is similar individual disability insurance in that the triggering event for payment is becoming disabled, the key difference is BOE is designed to cover the business’s operating expenses while individual disability coverage is intended to replace personal income.
Business owners can be considered, and loosely speaking, up to 10 employees although the requirement is that the loss of the insured is deemed to have an economic impact (i.e. other employees could not just take over and maintain revenue). Typical examples are doctors, lawyers, accountants or the principal owner/operator of a closely held business.
How It Works
- You become medically unable to work
- You make a claim and if medically approved
- Your BOE policy kicks in
- It pays the bills that keep your office open until you can return
You can think of it as business continuity protection — helping ensure that the business you’ve built doesn’t go on pause just because you need to.
Why are more self-employed individuals and small business owners not insuring themselves?
The Truth: It’s Easier — and More Affordable — Than You Might Think
People are quick to ensure professional liability insurance is in place, and that their physical premises or any needed equipment are insured. So why not these areas? The primary reasons people state for not pursuing insurance are “cost and complexity.”
The Immix Group is an independent, Canadian small business and we work closely with hundreds of small businesses- we understand the need to carefully consider all costs. However, it can be far less expensive than you think to put in place these protections. Working with an advisor to gain an idea as to the cost of various scenarios is a good starting point.
Concerned about complexity? That’s what qualified advisors do best: make things simple and understandable.
Smart Planning Starts with a Conversation
Insurance isn’t just about checking a box — it’s about protecting what you’ve built.
At Immix Group, we believe that including coverage for your health, income, and business operations is simply smart business planning. Whether you’re just starting your self-employed journey or scaling an established practice, the right protection can offer peace of mind and long-term stability.
You don’t have to figure it out alone — we’re here to help you navigate the options, make sense of the fine print, and choose a plan that fits your needs and budget.
Have questions or ready to take the next step?
Connect with our team today — we’d love to hear from you.
Key Takeaways for Self-Employed Canadians
Many self-employed professionals and contractors go without the kind of insurance coverage that’s typically built into employee benefits — leaving them financially vulnerable to health expenses, dental costs, or income loss due to illness.
In fact, fewer than half have any coverage at all:
- 45% have extended health care
- 37% have dental insurance
- Only 25% carry disability protection
That’s a big gap, especially considering the higher financial risk that comes with working independently.
Here’s what you need to know:
- Extended Health and Dental Care is a strong starting point. It can cover essentials like prescriptions, vision care, dental work, and visits to practitioners like physiotherapists and mental health therapists — including emergency medical travel.
- Health Spending Accounts (HSAs) offer a tax-smart way to manage eligible medical and dental costs, either on their own or as a supplement to insured plans.
- Disability Insurance helps replace your income if you can’t work due to illness or injury — particularly important for those who may not qualify for EI Sickness Benefits.
- Business Overhead Expense (BOE) Insurance ensures your business bills (rent, internet, utilities) are covered if you’re temporarily unable to run things yourself.
So, what holds people back?
Most often, it’s the perception that insurance is too expensive or too complex. The truth? Many plans are simpler — and more affordable — than you might think.
With the right guidance, you can put flexible, easy-to-understand coverage in place that fits your life, your work, and your budget.
Because smart insurance planning isn’t just about protection — it’s about peace of mind for your family, your income, and your future.
FAQs About Insurance for Self-Employed Canadians
Yes. Even if you’re not eligible for an employee benefits plan, you can get extended health and dental insurance privately. This type of coverage helps pay for things like prescription drugs, dental, vision care, and visits to practitioners like chiropractors, massage therapists and physiotherapists.
An HSA is a tax-advantaged way to adjudicate CRA-eligible medical and dental expenses. If set up properly, you can deduct these costs through your business. This will save you money compared to paying out-of-pocket personally.
Disability insurance protects your income if you become sick or injured and can’t work. This is a common inclusion under employee benefits programs in Canada.
BOE insurance helps cover fixed business expenses (like rent and utilities) if you can’t work due to disability. It’s especially useful for professionals or small business owners who play a key role in keeping their business running.
Not necessarily. Many plans are more affordable than expected, and generally speaking, you can cancel or adjust them anytime. Qualified benefits advisors like those of us at the Immix Group can help simplify the process and find the right coverage for your needs and budget.
Further Reading & Trusted Resources
Looking to explore the data or dive deeper into how benefits impact self-employed Canadians? These trusted sources offer valuable context:
A national snapshot showing how few self-employed Canadians are covered by insurance — and why that matters.
The Daily — Labour Force Survey, March 2025
New 2025 Data Reveals Majority of Self-Employed Canadians Lack Basic Insurance Coverage
More Canadians need disability leave and fewer have coverage – The Globe and Mail
A revealing look at rising disability needs and gaps in coverage across Canada’s workforce.
Data showing that even incorporated professionals often lack sufficient protection.
Private Health Services Plan – Canada.ca
CRA guidance on how HSAs work for small business owners.
EI Sickness Benefit – How much you could receive – Canada.ca
Check your eligibility and potential income support if you can’t work due to illness.
Ready to Explore What Coverage Could Look Like for You?
We know it’s a lot to take in. That’s why we’re here — to help you navigate your options, simplify the process, and find coverage that fits your life, your work, and your budget.
Whether you’re just getting started or want a second look at your current setup, we’re happy to help — no pressure, just personalized support.
Start exploring health, dental, and income protection plans today:
Visit Our Individual Plans Page
Or, if you’d rather talk it through:
Connect with Our Team — we love to hear from you.
Lindsay Byrka, CFP® BA, BEd
Vice President, Immix Group: An Employee Benefits Company
A Suite 450 – 888 Dunsmuir St. Vancouver V6C 3K4
O 604-688-5262
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