Freelancers liability insurance: What you need to know

In this Article:

• As a freelancer, do I need insurance?
• How liability insurance protects freelancers
• Get freelancers liability insurance today

Being a freelancer is a lot like being a cowboy in the wild west.  You have all of the freedom and flexibility to roam where you want to. You don't have to answer to anyone, you can decide which projects to take, and you get paid well for the work that you do. On the other hand, when something goes wrong it lands on you, whether you are at fault or not. That’s where freelancers liability insurance comes in. 

As a freelancer, do I need insurance?

You probably do. Whether you’re a Mompreneur, who wants more time with the kids or just someone who prefers to make their own schedule, freelancing can be a great way to make a living. But you need to know how to protect your business, and freelance insurance can help with that. Any business that provides a service or gives advice would benefit from the peace of mind that freelancers liability insurance offers. 

📌 Freelance professions that should have freelance  insurance include:

• Accountants & Bookkeepers
• Business Consultants & Management Consultants
• Photographers
• Manufacturer Sales Reps
• Insurance Agents & Insurance Inspectors
• Property Managers
• Real Estate Agents
• Many More...

Back to top

How liability insurance protects freelancers

There are several kinds of insurance policies for freelancers. The best one(s) for you will depend on the type of services you provide, whether you have business property, and other factors. Consider these kinds of insurance policies to protect your freelance business.  

Professional liability insurance

If you provide advice to clients, consider a professional liability insurance policy. Professional liability insurance, sometimes called error and omissions or E&O coverage, can protect you against claims that you incorrectly provided a contracted service or that the work you did was faulty in some way.  

Here’s an example. A freelance graphic designer took a project that included the design of a logo for a start-up technology company. The designer submitted several designs for the client to choose from. The client requested that elements of two different proposed designs be combined into the final logo. The designer didn't realize it, but the final design bore a striking resemblance to the logo of another company in the technology space. The established company sued the start-up for copyright infringement, and the start-up sued the designer. A professional freelancers liability insurance policy could have covered the designer for the cost to defend against the suit as well as a settlement or judgement.

General liability insurance

In addition to professional liability insurance, freelancers should consider general liability insurance. A general liability policy covers property damage or bodily injury to someone else. If you meet with clients in your office, or if you go to a client’s office or job site, a general liability policy will protect you if a client slips and falls on your icy sidewalk, for example, or if someone trips and falls over your laptop bag while you’re at a client site.

Cyber security insurance

If you use computers, send emails or accept electronic payments – consider cyber security insurance to protect your freelance business. Cyber security insurance can protect against the costs of a data breach or ransomware attack. And, with a free suite of training tools and breach response services, a Hiscox Cyber Security Insurance policy can help you prevent an attack in the first place and recover faster if one occurs.

Back to top

Get freelancers liability insurance today!

💡✍ As a freelancer you help your clients improve their performance by solving problems and improving processes. At Hiscox, we make it easy for you to get business insurance that's tailored to your field. Get a fast, free quote now and your consulting or freelance business could be covered today. 

Back to top