Working as a locum or contractor can be incredibly appealing: greater flexibility, higher pay, and more opportunities to travel or spend time with loved ones. If you’re looking for a better work/life balance, this path might feel like exactly what you need at this stage of life.
Like any career decision, it's important to protect your income by understanding what you gain by being independent and what you may give up. While the flexibility and income potential are attractive, this kind of work often comes with gaps in protection—gaps that are less common with permanent employment. TMA Insurance Trust can help you understand these trade-offs in advance, so you can make an informed decision and take steps to protect your income—no matter which path you choose.
The Advantages of Locum and Contract Work
There’s a reason why locum and contract roles are in demand across Texas. Job boards frequently show openings in specialties such as emergency medicine, internal medicine, anesthesiology, radiology, and pediatrics. Other high-demand areas include OB/GYN, vascular and plastic surgery. If you're open to temporary assignments, you may find these roles come with significant benefits:
- Increased earning potential: As a locum or contractor, you may find yourself earning more—especially when you're stepping in to fill an urgent or hard-to-staff role. In many cases, your travel and meals may be covered, too.
- Flexible schedule: You can often set your terms, giving you more control over your time. Work weekdays only, take extended breaks between contracts, or pick up night and weekend shifts if that suits you.
- Professional growth: You’ll experience how different practices operate, which can shape your career path and inform future decisions.
- Meaningful contribution: You help facilities stay staffed and support other physicians by allowing them to take time off or transition into retirement.
- Fewer workplace politics: With fewer long-term obligations to one facility, you can focus on patient care without navigating office dynamics.
Important Considerations Before You Begin
Working as a locum or contractor offers freedom; however, it also requires preparation. Here are a few key factors to keep in mind:
You’ll Be Operating as a Business
Most locums and contractors are classified as independent contractors, not employees. That means you'll likely need to set up a business structure. An accountant and business attorney can help you decide if a sole proprietorship, PLLC, or corporation is best for your situation.
You’re Personally Responsible for Retirement and Health Savings
This type of work doesn’t typically come with employer-sponsored retirement plans or health benefits. However, you can still contribute to a retirement plan or open a Health Savings Account (HSA) for tax advantages. These options can also help cover health insurance costs during periods between contracts.
Expect Gaps in Health Insurance
Some staffing agencies offer temporary health coverage—though that coverage usually ends when your contract does. Gaps in coverage can be stressful—and risky. TMA Insurance Trust may be able to help you secure reliable, portable health insurance so you’re protected no matter where you work.
Avoiding Financial Catastrophe
Some key protections are easy to overlook until you urgently need them. Make sure you’re covered in these areas:
- Disability insurance: This may be the most crucial coverage you’ll need—and it’s rarely offered to locums. Your ability to practice medicine is your most valuable asset. If illness or injury keeps you from working, disability insurance can help replace lost income. While it can be more challenging to secure coverage in a contract role, TMA Insurance Trust has experience helping physicians obtain coverage that travels with you from assignment to assignment.
- Malpractice insurance: Staffing agencies often include this, though it’s still important to double-check the details and to ensure there aren’t any gaps in coverage.
- Personal liability insurance: Your auto or homeowners coverage won’t change with your employment status, but it may not be enough. Many physicians choose to add an umbrella policy for extra protection.
- Life insurance: Most locum positions won’t include this benefit. Fortunately, term life insurance—especially when purchased at a younger age—can provide significant protection at a reasonable cost, offering peace of mind if your loved ones depend on you.
Helping You Make an Informed Decision
Choosing to work as a locum tenens or contractor isn’t just a career decision—it’s a lifestyle decision. It offers flexibility, income potential, and the opportunity to serve where your expertise is most needed. But it also requires thoughtful planning to ensure you’re not left without critical protections.
If you're considering—or already pursuing—a locum tenens or contractor role, it's a good time to review your insurance coverage. TMA Insurance Trust has been supporting Texas physicians for over 70 years and can help you find coverage designed for nontraditional roles like yours.
As the demand for locums grows, it’s important to consider all aspects of this career path and take steps to protect the career you've worked so hard to build. Our experienced advisors are here to help you understand your options and secure the right coverage. Click below or call us at 800-880-8181, Monday through Friday, 8:00 AM to 5:00 PM CST, to get started.
For over 70 years, TMA Insurance Trust advisors have been serving Texas physicians, their families and staff. TMA Insurance Trust prides itself on offering unbiased information and strategies to members, along with exclusive group rates on a range of the highest-rated plans in the industry.
