Freelancing and insurance – protecting your business and your future

Have you ever dreamed of working on your own terms, doing what you love, and being your own boss? Freelance work can make that dream a reality! But before you dive into the exciting world of freelancing, there’s an important factor you need to consider: insurance. As a freelancer, the risks and liabilities of your work fall squarely on your shoulders, so having the right insurance is crucial for protecting your business and securing your future. Don’t let unexpected mishaps or accidents derail your freelance career – make sure you have adequate insurance coverage to keep your business running smoothly!

Do freelancers need insurance?

Sufficient and appropriate freelance insurance or small business insurance is important for freelancers because they rely on their work – and their work exposes them to risks and liabilities. A small freelancer business may not have the funds to survive a liability claim against them and such claims may come from a large number of sources. For example, you could be sued for giving wrong advice, accidentally hit something with your work vehicle or have a data leak that exposes a client’s private information. Such costs could overwhelm a small business and leave you in personal financial trouble.

On the other hand, you could suffer the loss of expensive and important equipment that you need to carry out your work, leaving you with replacement costs and temporarily without income.

Each business has its own risk profile. Below are some of the most common types of insurance needed by freelancers.

Insurance types for freelancers

Public Liability

Public liability insurance is particularly important for when freelancers interact with the public. There are innumerable ways that injury to the public or damage to their property could occur in the course of your work. A client might injure themselves on your property or you might inadvertently cause damage to their property while performing work at their premises. The potentially high cost of being sued makes this insurance important for most businesses.

Product Liability

Did you know that you can have liability for products that you make, sell, assemble or supply? If such a product is faulty and causes further damage or loss you could be required to pay very large damages. Product liability is important for all freelancers who give products to their clients for this reason.

Professional Indemnity

Many freelancers give advice in exchange for payment. If you made a mistake in your advice or your client thinks that you did, they may sue you for compensation. Professional indemnity insurance, or professional liability insurance can protect your business and its reputation in such cases by ensuring you have funds for your legal fees and if you are found liable are able to pay what is required.

Cyber Liability

Every freelancer uses the internet to some degree – and that comes with a host of risks. Cyber insurance can protect your business against loss from cyber attacks like computer hacking, data theft and ransomware. This policy can be vital to your business because the compromising of your computer systems, websites and the private information of your clients would cause a lot of trouble for you.

Personal accident and illness insurance

As a freelancer and a business owner, your ability to work is vital for your business – but what if you were injured or sick and unable to work for a period? This insurance can protect you from loss of income while you recover your health.

Other policies that freelancers might need

Commercial vehicle insurance is important for freelancers who use vehicles for work. Commercial property insurance would be wise if you have an office. Insurance for your transportable tools and equipment might also be pertinent. Business interruption insurance can protect your business in case of an unplanned shutdown.

 

How to make sure that you have the right coverage

You can make sure that you have sufficient coverage if you do a thorough risk assessment and identify your areas of risk and liability. When comparing insurance policies, read the fine print to make sure that the inclusions and exclusions are suitable for your business. An insurance broker can be of immense help in this area, both in identifying risk and ensuring that the fine print of a policy suits you.

Tips for maintaining and updating your insurance

As your business grows and changes, expect your insurance needs to change too. Keeping on top of your insurance is important to make sure that your business activities are all covered and that money is not wasted on unnecessary policies. Make it a habit to tell your insurer about new equipment or tools that you have purchased and what is no longer in your possession. When planning a new type of business activity, always consider the risks of that activity and what insurance will be needed.

Freelance insurance through a broker is best 

The best thing to do when seeking the right insurance for your freelance business is to engage a good insurance broker. Insurance brokers work on your behalf to help you understand the insurance risks that your unique business faces and what policies will protect your business. Insurance brokers will also liaise on your behalf with the insurance company and advocate for you to get the best outcome. What is just as helpful is that you have a personal business relationship with your insurance broker and they will be ready to help you at any time with your insurance questions.

GSK Insurance Brokers based in Perth have been helping businesses get sorted with the right insurance for over 40 years. We’ll tailor an insurance package to help you protect your small business of any type. Contact us today for small business insurance and freelance insurance and we will make getting and maintaining it easy.