Is freelance insurance required for your business?
Freelancer insurance may be contractually required in some professional situations. You may be asked to carry business insurance coverage if you:
- Sign client contracts. Some contracts require general liability insurance or professional liability insurance before work begins.
- Provide services on-site. Proof of liability coverage may be required to work at a client’s office, event space or at a remote job location.
- Lease office or studio space. Landlords often require general liability insurance as part of a commercial lease.
- Join certain freelance platforms or vendor programs. These platforms may require independent professionals to carry the right business insurance before onboarding.
Even when coverage isn’t required, business insurance can help protect your financial interests.
Examples of what insurance for freelancers could cover
Many freelancers are surprised to learn that homeowners insurance typically doesn’t cover business-related liability claims.
And because no two freelancers work the same way, coverage isn’t one-size-fits-all. A graphic designer may need protection for client claims tied to creative work, while a photographer may need coverage for damaged equipment or on-site incidents.
Here are two examples of how freelancers insurance could help:
- A client claims that a miscommunication over project deliverables delays a project, and that the setback costs them in lost profits.** While it might be an honest mistake, the client could take legal action against you for professional negligence. Professional liability insurance for freelancers could help protect you against the cost of your legal defense – even if you’re found not to be at fault.
- Your client visits your home office, trips and injures their wrist. You could be held responsible for their medical expenses or related claims. General liability insurance could help cover those costs, along with legal fees if a covered claim is filed against your business.
How much does freelance insurance cost?
Freelancers perform a variety of duties across a wide range of industries and services. Be sure to provide the most accurate information about your business to get a quote.
Your monthly cost for coverage (called the premium) is calculated based on your level of business risk and the type of coverage you choose. How much you pay can vary based on a number of factors, including:
- The type of work you do
- Your industry
- How long you’ve been in business
- Your location
- The coverage limits and deductible you choose
- Your claims history
Start a free, no obligation business insurance quote with ERGO NEXT. In about 10 minutes you’ll see the exact price you’ll pay, 100% online.
General Liability insurance for freelance workers
General liability coverage is one of the most common types of business insurance policies freelancers carry. It helps cover:
- Bodily injury: This is what it’s called if a non-employee gets hurt at your home office, studio or other place of business. For example, if a vendor or a client slips and falls at your office and you’re asked to cover their medical expenses, general liability insurance could cover some costs.
- Property damage: Your policy can guard against financial losses if you or one of your employees cause damage to client property. For example, insurance for freelance photographers could help cover costs if a client’s property is damaged during a photo shoot.
- Advertising injury: General liability could also help cover libel, slander and advertising trademark and copyright infringement defense costs and penalties.
Professional Liability insurance for freelancers
Professional liability insurance, also called errors and omissions insurance (E&O insurance), could help cover you if a client claims that your professional mistakes cost them money or caused financial or personal harm.
This type of business insurance can also help protect you if someone alleges you provided inaccurate information. For example, if you’re a marketing consultant and you make a mistake with a campaign and it underperforms, a client could claim your strategy caused financial loss.
Professional liability insurance can help cover defense costs and legal expenses to defend your business – even if you are not at fault.
Cyber Liability insurance for freelance businesses
If you store client data, process payments or work online, cyber liability insurance could help protect your freelance business from claims related to data breaches, hacking or cyberattacks.
This type of business insurance can help cover costs like notifying affected clients, legal expenses and certain recovery efforts after a covered incident.
Other types of freelance business insurance
Freelancer insurance isn’t just one policy — it’s a combination of coverages built for how independent professionals actually work.
Commercial Property insurance
Commercial property coverage could help protect your business property if it is damaged or destroyed by fire, theft, vandalism or another covered event. This includes business equipment (like laptops), products, inventory, business furniture, flooring and other structures you need for business.
Property insurance coverage also includes business income insurance, which can help keep your business going if you’re forced to stop working temporarily after a covered event.
Business Owner’s Policy
A Business Owners Policy (BOP insurance) combines general liability and commercial property coverage into a single policy that’s often more cost-effective than buying two policies separately.
Commercial Auto insurance
If you drive for business, your personal auto insurance might not provide coverage if you get into an accident. Commercial auto insurance could help cover medical expenses and property damage if you cause an accident.
