Guest Post by Alanna
As a freelancer you can do what you love and have a degree of autonomy that a full time job couldn’t afford. However, things like insurance are not so cut and dry. In most cases, traditional commercial insurance plans won’t work for a freelancer. However, that doesn’t mean you shouldn’t be protected.
Freelancers should invest in business insurance. However, the type of coverage they decide on should be tailored to their unique activities. Without it, freelancers can be subject to liability or property damage which could be detrimental to their finances or sink their business.
Common Types of Freelancer Insurance
There is no one size fits all business insurance plan for freelancers. An insurance agent will meet with you, get you to fill out a survey or speak to you over the phone to get a feel for your daily activities, risk levels and needs. If you are self-employed as a freelancer, consider the following types of policies to protect you and your freelancing career.
General Liability Insurance: This is the most common type of insurance for freelancers. Any business with physical contact with the public should have this type of policy to protect them from financial loss resulting from a customer injury or property damage.
Professional Liability Insurance: If you are a freelancer who provides a service or professional advice you need this type of insurance. If your client suffers damages from your decision, they might have grounds to sue. This type of coverage will cover legal costs and more.
Cyber Insurance: Most freelancers work online today. If you have access to any sensitive client information which is shared over the web, it’s a smart investment to get a cyber insurance policy. It will cover financial losses or liability associated with lost or stolen information and more.
Personal Health and Life Insurance: If you work for yourself, you don’t have a company to offer you health insurance. When you buy your own policy you are putting a safety precaution in place so you can save on regular visits to your dentist, doctor or protect against disability. Life insurance will financially provide for your loved ones if the worse occurs.
Other Types of Freelancer Insurance: If you use a car for your job you might want to invest in commercial auto insurance, if you are involved in events you might need event liability insurance — the possibilities are endless. That’s why it’s important to talk to a professional so you can give yourself the piece of mind that you’re setting yourself up for success.
The Top Myth About Freelancers Insurance
Most freelancers who work from home are under the assumption that their business is covered under their homeowners insurance policy. However, this is not the case. Most homeowner’s policies specifically exclude business liabilities like a client being struck by a falling object or slipping.
Your policy might cover a limited amount of business property however, if you rely on expensive equipment and gadgets it’s best to top up your contents insurance. Check your current policy and consider adding more coverage.
If you want to save on freelancer insurance, try bundling your other insurance policies (like business, home or auto insurance) under the same company. Some newbies choose to increase their deductible for a lower yearly fee but this can be a risky move. It might end up costing you more in the long run, if you need to make a claim.
Most freelancers wouldn’t change their situation but it requires some foresight into possible risk if you have branched out on your own. Protect your business and give yourself peace of mind by investing in a freelancer insurance plan which is suited to your unique needs.
Alanna is an insurance professional with a passion for helping business owners and freelancers stay protected. When she is not at her desk, you can find her trail running or grabbing coffee with friends.