The Main Benefits Of Getting Insurance As A Freelancer

November 24, 2021

Nowadays, there has been a rise in choosing freelance work over traditional employment due to the flexibility this method of earning money offers. Not only that, being self-employed means having the freedom to create and maintain a better work-life balance that employees working in an office setup find difficult to do. These benefits, however, come with the cost of managing other aspects of your life on your own. Full-time freelancers are practically and legally small business owners who don’t have an employer whose insurance policies they can benefit from.

Aside from the obvious reasons for getting insured, there are multiple aspects that freelancers can benefit from:

Protection from Lawsuits

Regardless of what profession you belong to, there is a possibility of making mistakes that affect the client, like not following a contract. If you’re providing services independently related to programming, designing, writing, accounting, or any other field, there is a need to protect yourself. This is because if your client is harmed financially as a result of your negligence, they could file a lawsuit against you. Most freelancers lack the financial resources that long, costly legal cases require, so getting professional liability insurance would help since it provides coverage for expenses related to those claims.

Protection From Property Loss

An employer’s property insurance protects the business’ equipment from loss, theft, or damages. Whereas the expenses related to property damage of a self-employed individual aren’t covered if they don’t have homeowner’s or renter’s insurance. Since your home serves as an office, and the equipment you use is crucial in carrying out work-related activities, the team at My Choice recommends considering a homeowner’s insurance to ensure that all property related to your work or business is protected. Additionally, make sure to add a commercial endorsement to your existing policy that will provide coverage for your tools and equipment. This way, any loss or damage caused to your camera or laptop that you rely on, will be covered.

Protection from Cyber Attacks

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There is a risk of data breaches involved for freelancers that belong to the field of IT. Since they are responsible for handling sensitive information of clients like credit card information or any other personal data, there is a possibility of this data getting compromised as a result of cyberattacks. To limit your financial liability for these damages, consider getting cyber liability insurance, which covers expenses related to a data breach on your system. The coverage includes the cost of notifying clients whose data was stolen and the legal fees associated with claims against the IT freelancer.

It’s common for freelancers to overlook insurance if they’re previously working for an employer that provided them with the necessary coverage. Whether you have financial obligations or not, getting insured means preparing yourself for the worst especially since you can only rely on yourself. There are numerous options of plans that they can choose from. To understand the complications involved in buying an insurance plan, you can talk to an agent who will help you select a plan that is sufficient for you.

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