Insurance Policies for Freelancers

18 September 2021
Freelancer Using Computer - Banner Image for Insurance Policies for Freelancers Blog

The old standard of retiring after 40 to 50 years with one company, receiving a pension and a gold watch, is what was expected of your grandparent’s generation. A time when people were required to go follow in the footsteps of their father and their father’s father and so on and so forth, but today, all that has changed.

Today, according to Forbes, the U.S. has a growing numbers of freelancers and it’s projected that one out of every two workers will be freelancing in some capacity.

Many people are drawn to freelancing because of the promise of freedom it provides. A freelancer has the liberty to determine when they work and whom they work for, compared to the rigid rules of an established organization.

In just about any profession, working independently as an accountant, software developer, doctor, or plumber, you will be running your own business, and it’s our business to remind you that no matter what you do there is risk involved.

Whether you are already a freelancer or you are considering becoming one, business insurance policies can help protect you. It can protect your independent operation from a costly liability lawsuit that threatens your professional and personal assets. Not only that, but you might also find it challenging to work as a freelancer if you do not have insurance because potential clients will ask you for your certificate of insurance before they are willing to shake hands with you.

The bottom line is as a freelancer, having a quality insurance coverage will tell your clients that you take your business seriously because it’s your business, no matter what you do, to look out for theirs.

Types of Business Insurance for Freelancers

There are several types of insurance coverages that are highly relevant regardless of the freelance work that you do.

As a freelancer, you should consider purchasing:

1. General Liability Insurance

This is one of the basic insurance policies for freelancers and small business owners alike. General liability insurance covers you against common accidents in the workplace— property damage and/or injuries involving a third party. Even freelancers who work from home can benefit from this type of business insurance.

Additionally, this insurance coverage will protect you against advertising injuries which includes libel, slander, trademark, and copyright infringement.

2. Business Interruption Insurance

This type of business insurance for freelancers is important if an unexpected event occurs that prevents you from doing business. For example, riots, vandalism, and theft are usually covered under business interruption insurance. This insurance coverage can help you cover costs of lost income, relocation, lease payments and taxes. It may not be an important policy to be considered being a freelancer, but due to the recent global pandemic, it might be worthwhile to have this insurance policy.

3. Professional Liability Insurance

While general liability insurance protects you from claims of personal injury and/or property damages, a professional liability insurance is a type of business insurance that you may want to look into.

This policy is also known as errors and omissions insurance that covers freelancers’ professional errors, including being negligent in performing the job and omissions during the fulfillment of a professional service.

Take note, even if you perform your work well and if the client’s expectations were not met or are dissatisfied with your service, you can still get sued. A professional liability insurance must be considered if you provide services to customers or clients.

4. Health and Disability Insurance

According to a survey published by Forbes, freelancers say that a cost effective health and disability insurance is a concern since freelancers are self-employed and do not have an employer to help provide them with health insurance or any type of employee benefits. Not only should you find a good health insurance for yourself, but you should also consider a disability insurance since you do not have an employer to rely on for the employer-implemented worker’s compensation coverage in the event that you suffer some type of injury or serious illness as a result of your work.

5. Commercial Property Insurance

Even if you are working at home, you might need commercial property insurance because a standard homeowner’s or renter’s policy might not cover damages related to your business property. This means that if your tools for business are damaged or stolen, you will not be covered if you do not have a commercial endorsement for your homeowner’s or renter’s policy. It is a good choice to have a Commercial Property Policy to make sure that all your business-related property is covered.

Invest in the right insurance policy to protect your freelance business. If you have questions about the proper insurance coverage you need, we are glad to offer guidance. Please do not hesitate to contact Inszone Insurance now!

Leo Simental - Inszone Insurance Personal Lines Staff Development Lead

Leo Simental

Personal Lines Staff Development Lead

Leonel Simental is a Personal Lines Staff Development Lead at Inszone Insurance Services. As he entered the industry in 2011, Leo knew that insurance expertise was critical in delivering a high level of service to his clients. He worked diligently to master the concepts and afterwards found he was able to bring a unique value to each interaction by utilizing that knowledge to provide solutions to even the most complex scenarios. Leo quickly grew his customer base and to this day continues to impress with his knowledge, consistency and care for each and every one of his clients.

With Inszone since 2015, Leo has won multiple awards and has been integral in the growth of the Personal Lines Division. If you’re looking to improve your insurance situation for home, auto or other personal policies, Leo is the first and only call you will need to make.

Outside of the office, Leonel enjoys spending quality time with his wonderful family, hiking and staying active.

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