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Insurance for Freelancers

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Freelancer

Insurance for Freelancers

As a freelancer, you open yourself up to different risks every day. Your clients rely on you to deliver important pieces of work, and you rely on them. Being properly protected in the unfortunate event that something goes wrong can stop you from having to worry about the financial effect any claims made against you could have on your business.

A single premium, renewal date and set of documents means that getting insured is as quick and as simple as it should be – leaving you to get on with the important stuff.

Working from home

As a freelancer, you may work from home. Your conventional home and contents insurance policy might not cover the items you use for your business, and you may need a separate business insurance policy.

If you have clients visiting your home, you may also need public liability insurance.

Public liability insurance for freelancers

Public liability insurance covers your business against compensation claims and any legal costs if a third party suffers injury or property damage while on your premises, or while you’re working on theirs.

Public liability insurance covers:

  • Compensation payments for third party injury, or death.
  • Repair or replacement costs for damaged property or possessions
  • Medical fees
  • Legal expenses

How much public liability insurance do I need?

Simply Business’ public liability insurance policies offer a minimum level of £1m. Depending on the nature of your business and customer/client’s needs, you might require a higher level of cover to make sure that both you, and your business are protected.

It’s best practice to check your policy when you take on a new job or contract. For example, companies working on government contracts are required to have a minimum of £5m or even £10m in public liability insurance.

Professional indemnity insurance for freelancers

Professional indemnity insurance is a vital protection for businesses that give advice or offer professional services. It will cover you if you give bad advice which results in a financial loss for the company you’re working for.

Professional indemnity insurance covers:

  • Professional negligence or breach of duty of care (making a mistake in your work or providing bad advice)
  • Unintentional copyright infringement
  • Unintentional breach of confidentiality (sharing information that’s confidential or sensitive without consent)
  • Loss of data or documents
  • Defamation or libel (a false statement that is damaging to a company’s reputation)

How much cover do I need?

It’s always worth asking your customers and clients how much cover they need you to have, to ensure you’re protected in the unlikely event that something goes wrong.

Making sure you have the right level of cover before you start a job is crucial. If you need to change your level of cover, let your insurance provider know as soon as possible. Underestimating the amount of cover you need could mean that any claims you make might not be paid.

 

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