Being a freelancer comes with plenty of freedom and flexibility, but it also comes with many risks.
While the demand for skilled freelancing is rising, freelancers need business insurance to protect themselves if something goes wrong.
As a freelancer, there’s often no division between you and your business (unless you create an LLC). Your business assets, but also your personal assets, could be at risk in the event of a lawsuit.
Freelance business insurance can protect you if you make a mistake that affects your clients’ bottom line or if you are held responsible for causing an injury or property damage.
If you’re a freelancer, you’re in good company.
Freelancers make up 36% of the workforce in the United States, according to a recent Upwork report. But you might wonder if you need freelance business insurance.
Business insurance can protect you financially in several situations and provide peace of mind — for you and your clients.
For example, suppose there’s a miscommunication over project deliverables. It delays the project, and the setback costs your client money in lost profit. While it might be an honest mistake, the client could sue you for negligence.
Without the right coverage, you could be forced to pay entirely out of pocket for legal fees and damages if you are ruled at fault. Freelancer business insurance help can protect against this scenario and others.
A freelancer’s general liability policy is one of the most important types of coverage they can have. It can protect you even if you work from home. It can provide financial protection if you are accused of:
If you drive for business purposes, your personal auto insurance might not provide coverage if you get into an accident. Commercial auto insurance can help cover medical bills and property damage if you cause an accident.
This coverage can help protect your business property if it is damaged or destroyed by water, wind, fire or another covered event in your policy. This includes business equipment, inventory and structures your business needs.
It also includes business interruption insurance that can keep your business going if you’re forced to stop work after a covered event.
Professional liability insurance is also known as errors and omissions insurance (E&O). It can cover mistakes you might make that cost your clients money or cause financial or personal harm.
It can also protect you if someone alleges you provided inaccurate information. Professional liability can help cover legal expenses to defend your business even if you are not at fault.
A Business Owner’s Policy (BOP) includes general liability and commercial property coverage. It can often cost less to purchase these two types of coverage together than buying them separately.
The average freelance salary is $68,703 per year, according to ZipRecruiter, which leaves little room for expensive insurance coverage.
How much you pay depends on factors like:
When you get an insurance quote, NEXT calculates your rate according to your specific situation and risk factors to offer cheap business insurance.
Freelancers perform a variety of duties across a wide range of industries and services, so it’s essential to provide the most accurate information about your business when you get a free quote.
Freelancer business insurance is a great option if you’re self-employed or perform contract work.
How can you get business insurance for freelancers? The first step in securing coverage is finding a reputable freelance insurance company that offers the coverage you need at a fair price.
We create customized business insurance packages tailored to the needs of small business owners like you.
The entire process is online, so you can get a quote quickly, review options and purchase coverage within 10 minutes.
When you buy a policy, you will have immediate access to your certificate of insurance (COI) around the clock.
Get started today with an instant quote.