Can Freelancers Get Business Insurance? Get answers in our Guide to Business Insurance for Freelancers.
Yes, freelancers can get business insurance! In fact, having business insurance is highly recommended for freelancers to protect themselves and their businesses against a myriad of potential risks and liabilities that can include property damage claims, medical claims, intellectual property damage claims, cyber theft, and more!
Learn about common types of business insurance that freelancers might consider in the comprehensive guide to business insurance for freelancers below.
What is Business Insurance?
Although the terms commercial insurance and business insurance are often used interchangeably, there are a few notable differences between these two insurance types.
Generally, commercial insurance is designed for larger businesses, corporations, and enterprise-sized companies. Commercial insurance can include coverage for owned or rented commercial properties, automobiles, and offers provisions for worker’s compensation insurance.
Business insurance that provides financial and legal protections for individuals and small business owners goes by many names. Following are a few examples of business insurance options for freelancers, gig workers, independent contractors, and small business owners.
- Self-Employed Business Insurance
- Professional Liability Insurance
- Sole-Proprietor Insurance
- Independent Contractor Insurance
- Gig Worker Insurance
- Home-Based Business Insurance
Why Do Freelancers Need Business Insurance?
Independent Contractors, Gig Workers, Small Business Owners, and Freelancers who provide professional services for clients face the same legal and financial risks as larger businesses who provide services directly to clients.
Freelancers should get business insurance to protect their earnings and income from potential liability claims, contract disputes, cyber-related risks, equipment and reputation damage that could damage their business.
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Business Insurance for Freelancers
Now that you know the many different names that freelancer insurance plans can go by, let’s look at some of the options and coverages available for freelancers.
Each insurance type below represents an option typically offered by popular and lesser-known insurance companies.
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General Liability Insurance
Freelancers seeking coverage from physical injuries and property damage claims can get general liability insurance to offset the cost of legal and medical claims. General liability insurance protects freelancers from claims that arise during the course of their freelance work.
Q: Which freelancers can benefit from having general liability coverage?
A: Graphic Designers, Freelance Writers, Web Developers, Digital Creators, and Photographers who provide in-person services can benefit from liability insurance protections when renting office space, handling expensive equipment, and in-person client contacts.
Professional Liability Insurance (Errors and Omissions Insurance)
Professional liability insurance is also known as “errors and omissions coverage.” This professional insurance protects freelance service providers against claims of negligence, mistakes, or failure to deliver services as promised.
Without adequate insurance, independent service providers can find themselves responsible for legal judgments or settlement claims as out-of-pocket expenses.
Q: Which freelancers can benefit from having errors and omissions coverage?
A: Freelance Writers, Designers, and Business Consultants can benefit from having professional liability insurance to protect their financial interests in cases where clients experience financial harm based on their receipt of products services, and advice.
Cyber Liability Insurance
Our immersion in the digital age requires that freelancers and professionals who provide services via the web take precautions to protect themselves and their clients from the financial impacts resulting from data breaches, hacking, and cyber theft.
Cyber liability insurance helps to protect individuals and small businesses from the devastating fallout associated with cyber attacks.
Protects if your business is affected by a data breach or cyberattack. This is especially relevant for freelancers who handle sensitive client data or work in the digital space.
Q: Which freelancers can benefit from having cyber liability insurance?
A: Professional Writers, Website Designers, WordPress Admins. IT Consultants, Digital Marketers, and Social Media Managers who regularly store, use, and access proprietary data and systems can benefit from cyber liability insurance to ensure financial protections against a growing number of cyber threats against individuals and small business owners.
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Business Interruption Insurance
Business interruption insurance has built-in income protections that replace lost income for freelancers when natural disasters, theft, vandalism, or other covered perils happen that cause their businesses to temporarily shut down.
Q: Which freelancers can benefit from having business interruption insurance?
A: Freelance Writers, Editors, Accountants, Web Designers, and IT Professionals can breathe easier when they are out of work for extended periods when they have business interruption insurance to replace some or all of their lost income.
What Other Types of Insurance Do Freelancers Need?
Health Insurance: While not specific to business operations, freelancers often need to secure their own health insurance due to a lack of employer-provided coverage.
Dental Insurance: Maintaining optimal dental health is another important step for self-employed workers, freelancers, and gig workers to take. Find dental insurance plans for individuals and available as add-ons to comprehensive health insurance plans.
Commercial Insurance: Your business insurance needs will change as your business begins to scale. Consider investing in commercial insurance when you notice a surge in business, you begin to hire employees, or when you purchase company vehicles for yourself and your employees.
Workers Compensation Insurance: Freelancers operating high-volume businesses and those who hire subcontractors or employees may want to consider investing in commercial insurance and worker’s compensation insurance that covers work-related illnesses, accidents, and on-the-job injuries.
Next Steps: How to Get Business Insurance for Freelancers
Contact your current insurance provider or a trusted local business insurance professional in your area to learn more about coverage costs, premiums, policy bundling options, how to get a business insurance quote or start a policy.
Freelance Insurance Providers
The Hartford: Offers Freelance Liability Insurance Plans on Their Website.
Next Insurance: Professional Liability and Contractor Insurance Options.
Independent Contractor Insurance: Best Companies, What Coverage You Need – Nerdwallet
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