What Insurance Policies Do Freelancers Need?

Being a freelancer is rewarding, but it’s also a risk that comes with being your own boss. One of the biggest risks for freelancers is having to pay for an unexpected or expensive business liability claim. The best way to protect yourself from these claims is by purchasing business insurance tailored to freelancers.

A few different types of business insurance policies are available to help freelancers protect themselves against some of the most common risks of their profession. Business Insurance can help cover expenses such as medical bills, property damage, and lost income if your business suddenly shuts down. It’ll also cover legal costs associated with defending yourself in court.

In this article, we’ll help you understand what business insurance is, and the differences between the insurance types so that you can make a more informed decision when purchasing insurance for your freelance business.

❓What is Business Insurance?

Business insurance is a type of insurance that covers the financial risks for businesses and individuals involved in business-related activities. Business insurance provides coverage for a variety of risks, including property damage, injury to employees, legal fees, and more.

Some types of business insurance for freelancers include general liability protection (to protect you against claims by third parties), professional liability protection (to protect you against claims by clients or other professionals), workers’ compensation, general accident and sickness coverage, and umbrella policy.

As a freelancer, you want to be protected from any potential liability claims that might arise. Business insurance can help protect you from costly claims and is a wise investment for any freelancer.

What to Consider When Purchasing Insurance

Before you take the leap and purchase business insurance for your business, it’s important to ask yourself a few questions. Here are some of the most important questions to think about when buying insurance for your freelancing business:

• What type of business insurance coverage do I need?
• What is my deductible amount?
• What is my maximum claim limit?
• Do I need workers’ compensation insurance?
• How much does the policy cost?

It’s important to consider the specific risks associated with the type of freelancer that you are. For example, if you are a freelance writer, you may want to consider coverage for libel or slander. If you are a graphic designer, you may want to consider coverage for copyright infringement.

Types of Business Insurance

There are a variety of different types of business insurance available to help freelancers protect themselves against some of the most common risks of their profession. The most common types of insurance for freelancers include general liability protection, professional liability protection, workers’ compensation, and umbrella policy.

General liability insurance protects you from financial losses if you are sued for causing harm to another person or their property. This type of insurance can help pay for damages that you may be liable for, such as medical bills, property damage, and legal fees.

For example, having this cover is recommended if you work from an office where clients visit. Otherwise, you could be liable for any injuries that occur on the premises.

Professional liability insurance protects you from financial losses if you are sued by a client or another professional for causing harm. This type of insurance can help pay for damages that you may be liable for, such as medical bills, property damage, and legal fees.

For example, as a freelance event organizer, you may run into a situation where you are unable to meet contractual agreements, and fail to organize an event for which the client takes you to court. Professional liability would help with your legal expenses and claim payouts resulting from it.

Workers’ compensation insurance is a type of insurance that provides benefits to employees who are injured or become ill as a result of their job. This type of insurance can help cover medical bills and other expenses related to the illness or injury.

For example, a freelance photographer more than likely employs an assistant to move equipment, hold lights, and help with other tasks. If that assistant is injured while on the job, workers’ compensation insurance would help with their medical bills and other expenses related to the injury.

Umbrella policies are a type of business insurance that provides extra coverage for businesses that have a high risk of being sued. This type of policy can help pay for damages that exceed the limits of your other business insurance policies. For example, if you have general liability and professional liability insurance, an umbrella policy would provide coverage for any damages exceeding those policies’ limits.

Conclusion

As a freelancer, it’s important to be aware of the risks associated with your profession and protect yourself with business insurance. General liability insurance can help protect you from financial losses if you are sued for causing harm to another person or their property. Professional liability insurance can help protect you from financial losses if you are sued by a client or another professional for causing harm. Workers’ compensation insurance can help cover medical bills, lost income, and other expenses related to the illness or injury if you are injured or become ill as a result of your job. Finally, umbrella policies are a type of business insurance that provides extra coverage for businesses with a high risk of being sued. Protect yourself and your business with the right business insurance policy today.