Do you bother insuring your freelance business? Many people don’t, but the truth is that is a big mistake. It can be tempting to avoid the extra costs of insurance, but you will regret it if something were to happen to you, your equipment, or your customers.
With this in mind, I thought I would go through a few insurance essentials for all freelance businesses. Take a look and have a think of you should find yourself a plan and get on board the insurance train. You never know, one day, it could come in useful.
Health and medical insurance
First of all, it is essential to look after your own health. Without it, you won’t be able to work. And, unless you have a horde of money stashed away somewhere, you won’t be able to pay for treatment if you need it. Of course, it’s not just enough to have standard medical insurance, as you may need extra cover for the work environment. So, given your ability to do your job is the cornerstone of everything else, look into the plans and policies that will give you that cover.
If you have an accident disability insurance, it’s going to put enormous strain on your finances. And, possibly your relationships. All it takes is one simple trip or a fall, or a call to your doctor’s office and your life could irrevocably change. Now, disability insurance tends to cover you for half your current earnings, so you will have a shortfall to make up. But, it will give you a firmer base to start from than you would get without it.
Professional liability insurance
Now, let’s get to the nitty gritty of real life insurance your freelance business. What you need is professional liability insurance, or errors and omissions insurance. It covers you for any accidents that are deemed as your fault. No matter what service you provide people, there is always a chance that something could go wrong. Perhaps somebody will trip over your bag, or maybe you have missed something in your repair job that causes issues. You have to have this insurance in place to protect you because there is no telling the damage your mistake could do.
Employer’s liability insurance
Just because you are a freelancer, doesn’t mean you will never have any staff working for you. And, the moment you do, you’ll need insurance. As an employer, you are responsible for the health and safety of your staff. If they have an accident or suffer an injury under your care, you could be liable. Make sure you have the right protection in place with robust employer’s liability insurance.
As a freelancer, you won’t get any of the benefits that employees enjoy. And, in many different careers, one of those benefits is a death in service payout. So, you have to cover your own back to make sure your family and loved ones get what they need in the event of your death. It’s not expensive, but it will give them the support they need if you aren’t here to provide for them.
Any more questions about business insurance for freelancers? Why not put them to the other readers in the comments section below?