When starting out as a freelancer, the temptation is always to keep things small. By staying lean, you can cut your overheads and keep more of the profit. This might mean working from your kitchen table to save of office rental and renting rather than buying computer equipment.
One area that you should never skimp on is insurance. If you offer professional advice, your words could come back to haunt you if you client suffers a loss as the result of your work. While you might have a rosy view of the world and you might like to believe that no one would take legal action against you, think again!
Insurance claims against freelancers are on the rise, and with legislation like the GDPR set to come into play later this year, there are also IT security risks that could cause you a headache in future. Staying protected with freelancer insurance just makes sense. So, what type of insurance do you need?
Professional indemnity insurance
This is the most obvious one for freelancers offering professional advice. PI insurance will protect you against claims made against you if a client suffers a loss as a result of advice you gave them. For example, if you’re a marketing professional and you make a mistake on budgets that causes a client to overspend and they make a claim, you’ll be protected from the financial cost of compensating and defending the claim.
Employer’s Liability Insurance
If you employ another person and they are injured while doing work for you, they have the legal grounds to sue. Employer’s liability insurance protects you. If you’re a photographer and your assistant breaks their leg while on a shoot with you, you’ll be covered.
Public liability insurance
If your job brings you into contact with the public, then this type of insurance will protect you if a member of the public is injured or suffers a loss as the result of you. For example, if you are a freelance event planner and a member of the public suffers a burn during one of your events, public liability insurance will cover you. Often, you won’t be able to go ahead with events of this type without the right level of coverage.
If you aren’t sure what kind of freelancer or contractor insurance you need, it’s worth getting in touch with a professional to help guide you.