I’m self-employed, so I know the appeal: you set your own schedule, you build something of your own, and what you put in comes back to you.
But there’s one question a lot of business owners, contractors and commission earners put off: what happens to your income if you can’t work?
There’s no employer plan quietly sitting in the background. If you stop working, your income can stop too, while your mortgage, your bills and your business expenses keep coming.
Isn’t there a government program for this?
There can be, but you need to know the details. Self-employed Canadians don’t automatically have Employment Insurance. You have to register by entering into an agreement with the Canada Employment Insurance Commission, and that agreement must be active for at least 12 months before you can receive special benefits.
If you qualify, EI sickness benefits can last up to 26 weeks and pay up to 55% of your earnings, to a maximum of $729 per week in 2026. You also have to meet other requirements, including a minimum amount of net self-employed earnings. That can help, but it’s temporary and it may not replace enough of what you need, especially if your income is higher or your recovery takes longer.
Four protections worth a closer look
1. Disability insurance
This pays a monthly benefit if an illness or injury stops you from working. If you only look at one thing on this list, start here, because your ability to earn is what pays for everything else. Pay close attention to the waiting period, how long benefits last and how the policy defines disability.
2. Critical illness insurance
This pays a lump sum if you’re diagnosed with a covered condition and meet the policy’s terms. You could use it for treatment, travel, debts or to keep the business running while you focus on getting better.
3. Business overhead expense insurance
Your rent, utilities, staff and other costs don’t stop just because you’re off work. This coverage can help pay eligible business expenses, so you still have a business to come back to.
4. Life insurance
If people depend on your income, or you have debts that would fall on your family, life insurance helps make sure they aren’t left carrying that weight. If your business has a partner or loans, it’s worth looking at how those would be handled too.
What if my income goes up and down?
That’s normal for a lot of self-employed people, including me. It affects how you plan and how much coverage you may qualify for, because insurers often look at your income history and tax returns. It helps to keep your records organized and review your coverage as your income changes.
You don’t have to do everything at once. A smaller plan you can keep paying for is better than the perfect plan you never start. Build a cash cushion for the slow months, cover your biggest risk first, and add to it as your business grows.
The bottom line
When you work for yourself, you’re also your own benefits department. A little planning now can be the difference between a difficult few months and losing what you’ve worked so hard to build.
If you’re self-employed and not sure where you stand, let’s talk it through. Reach out to me here or call (647) 891-9677.
This article is general information, not personal financial, tax or insurance advice. Coverage and eligibility vary by insurer and your situation, and government benefit rules can change. Sources: Government of Canada, EI special benefits for self-employed people and eligibility.
