Do you really need coverage when you’re the only employee?
As a freelancer, you no doubt enjoy the freedom, independence and flexibility that comes from being your own boss. But just like any profession, independent contractors face myriad challenges when doing business. While you may not have thought about it before, protecting yourself and your business is not only a smart idea, it is often required by some clients depending on your industry. There are a few different types of policies that can protect you if you’re a freelancer. Here’s a breakdown of two of the main types and how they can protect you.
1. Professional Liability Insurance
Whatever business you’re in, Professional Liability Insurance will protect you in the event that a client sues you for something that went wrong. Whether it’s your fault or not, things happen that can have disastrous results. Consider the freelance web designer who created a website for a client that was supposed to be secure, but something went wrong and the client’s data was compromised. Or the photographer who lost his/her files and was unable to deliver pictures of a client’s momentous event. All of these examples and many more could result in a lawsuit. But with Professional Liability insurance, you’ll be covered for:
- • Negligence
- • Damages and defense costs
- • Libel and/or slander as a result from your work
- • Punitive damages
- • Damages, slander or errors resulting from subcontracting
2. General Liability Insurance
If you’re renting an office space or you have clients come visit you in your home office, you may want to consider getting a General Liability policy. Think about what would happen if your client came by to pick up a project or drop off important documents and they were injured while on your premises. Imagine if their car was damaged in your driveway or some other unexpected event caused harm or injury. General Liability Insurance would protect you if your client decided to sue.
Protecting your business, your livelihood
You may be thinking that as a self-employed worker your business isn’t big enough to warrant any insurance. But the truth is that anyone can get sued at any time. When you’re working with clients on projects that are important to them, you taking a risk if you’re not covered. And because everything in life is so technologically driven, it’s even more important to remember that things happen—files get lost, information gets leaked, communication can get misconstrued. So whether you’re an artist, writer, photographer, builder, IT consultant or some other professional, insurance can protect your livelihood and mean the difference of your continued success and having to close your proverbial doors if someone decides to sue.
Being a freelancer has its advantages, but with them comes the need to protect yourself against possible lawsuits and loss due to unforeseen events. Luckily there are insurance policies available that can cover you if something happens. Contact us today
for more information on professional liability or general liability insurance and to discuss your needs options.