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Why Would A Freelancer Need Liability Insurance?

Freelancing is an attractive employment proposition to those individuals who choose to work on their own terms: they can make their own schedule and work with clients of their own choosing.  

Whether you have a small business or earn a bit of money on the side from freelancing, it is important to know what specific liability insurance coverage can help you cover costs in the event that a claim is made against you. Freelancer liability insurance coverage can give you peace of mind so that you can continue to flourish in what you are passionate about. 

What Is Freelance Liability Insurance?

Freelance liability insurance is a specific insurance policy designed for self-employed freelancers that earn their income on a per-project basis across various industries. Some of the liability coverage options that are offered through freelancer liability insurance can protect your business from the following claims:

  • Negligence.

  • Third-party property damage.

  • Bodily injury.

  • Failure to deliver services.

Who Needs Freelance Liability Insurance?

In general, freelance liability insurance is recommended for any freelancer that provides services through their business. The most common freelance business covered by freelance liability insurance include the following:

  • Digital marketers and media. 

  • Consultants. 

  • Engineers.

  • Graphic designers.

  • Illustrators. 

  • Makeup artists.

  • Photographers.

  • Tutors.

  • Personal trainers. 

  • Web developers.

  • Writers.

  • Yoga instructors.

What Does Freelance Liability Insurance Cover?

Freelancers come from many different industries, and so a digital marketer would need different liability coverage as opposed to, for example, a makeup artist. However, the core coverages for freelancers as part of their freelance liability insurance include the following four policy options:

  • Professional Liability Insurance or Errors and Omissions Insurance: this coverage can protect your business from allegations of negligence, misconduct, or the failure of delivering a service as promised to your customers and clients. This liability insurance option is important if your freelancing business is based on you providing expertise advice to your clients. In the event of a claim made against you, errors and omissions insurance can help you cover legal and other costs for negligence or error. 

  • Cyber Liability Insurance: this liability insurance option protects you as a freelancer from cyber criminals who can hack your customer list and gain access to sensitive information (e.g financial information of your clients). Cyber liability insurance can cover you for customer notification costs, legal expenses and risk management fees.

  • Product Liability Insurance: this liability insurance is critical to have if you manufacture, sell, or distribute items. This insurance option is specifically designed to provide you with financial protection in the case that a bodily injury is caused by your product, or if your product causes third-party property damage. If a client decides to sue you in court, you can have peace of mind that product liability coverage can help you cover legal costs, or costs associated with financial judgements made against you.  

  • Commercial Property Insurance: this liability insurance option protects the building from which you operate your business, along with other physical assets such as: equipment, technology, inventory and stock. For example, a personal trainer who freelances from home and has his equipment destroyed by a fire would be provided financial coverage through commercial property insurance to cover the costs of repair or replacement of the affected equipment.  

If you are currently a freelancer, or if you plan on pursuing your dreams as a freelancer in the near future, please contact us today to find out on how we can best meet your freelance liability insurance needs for your business.