As a freelancer, you are exceptionally vulnerable to events that could bring your business to a halt. If you are unable to work due to injury or illness or a client sues you for more money than you have, you have everything to lose. If you have freelancer insurance as a safety net, you can take on bigger clients and projects without the worry of something going wrong.
What does freelancer insurance include?
A freelancer insurance package can be tailored to suit the needs of your own individual business but as standard it should include:
1. Professional indemnity insurance
Whether you have made a mistake or not if a client decides to sue you, professional indemnity insurance provides you with the cover for any compensation and legal costs. Even having your laptop stolen could get you into trouble if it has confidential client information stored on it.
Professional indemnity insurance shows your commitment to providing a professional service to your clients if something were to go wrong.
2. Employer’s liability insurance
Many freelancers begin working alone, but as soon as you employ someone as your business grows, you need to make sure that you have employer’s liability insurance by law.
3. Public liability insurance
Public liability insurance protects you against today’s ‘no win, no fee’ culture. Someone can sue you for simply tripping up on your laptop cable and they can claim against you for any injury they have or damage to their property which has happened whilst working with you.
4. Product liability insurance
If you design and make products as a freelancer you may need product liability insurance as part of your freelancer insurance package. If one of your products causes damage to a client’s property or injury to a third party, the legal costs could be huge.
5. Office insurance
Freelancers rely on their equipment as you are unlikely to have an IT department to fall back on. Most freelance businesses include computers, printers and office furniture so you need to take out office insurance to cover them. Even if you work from home, your home contents insurance might not cover your equipment. A single storm could cause flooding and damage beyond repair and if you aren’t properly covered then it could be catastrophic for your freelance business.
6. Building insurance
Whether you work from home or own an office, building insurance will cover the office building structure, indoor fixtures and flooring in case of damage.