Freelancer Insurance is a factor for the success of your business

By Toni

In this litigious society, clients are more likely to hire a freelancer only if they are insured. Insurance has become a determining factor for the success of a business. You might have read and heard about negligence claims made against freelancers for mistakes that they had made at work. The cost of negligence claims is so high that the professional has to sacrifice a lot of money to settle the dispute with the client. Not only does negligence claims spoil the proper functioning of a business but also the reputation of the professional. It might have been a very small mistake made by the freelancer, for which he needs to spend a hefty amount. Having freelancer insurance buy now will give the professional peace of mind and confidence at work.

Freelancers insurance not only covers for negligence claims but also for liability and other claims. Suppose a client is dissatisfied in your work and sues you for negligence, then professional indemnity insurance cover will protect you by defending the lawsuit and also paying the compensation. Suppose a client gets injured when he/she is in your office, then he/she can claim you for improper infrastructure and you will have to pay for the medical expenses. Such claims can be settled through the liability cover of freelancers insurance. Suppose your office gets damaged by any natural disaster or some confidential documents get stolen from your office, then freelancer insurance will provide cover for the repairing the damages. Repairing or replacing the damaged things can take days to months during which you will not be able to make an income. If your freelancer insurance covers for business interruption then you can claim the insurer.

The freelancer insurance cover will help you settle compensation claims for losing the documents. These are some of the examples where freelancers insurance plays a major role to save the livelihood of the insured.

The type of public liability insurance and professional indemnity insurance cover that you choose for the freelancers insurance, the deductibles, extras, amount of cover, premium and so on play an important role in giving adequate protection. If you choose comprehensive and flexible freelancer insurance policy you will have adequate protection. But it is also important to examine if the cost of comprehensive freelancer insurance cover is affordable by you. There will be no use in buying expensive pi insurance for freelancer if you are not able to pay the premiums regularly. Hence be clear of your requirements and affordability and choose freelancer insurance accordingly.