You got into the freelance life for a few reasons. You wanted more control over your life, control over the work you do, and freedom to come and go as you please while following your passion. Of course, you also wanted to control your income, too.
How much control do you think you’ll have if a former client who’s upset with you sues you for a bad job or lost information?
Lawsuits are any small business’s worst nightmare but even more so for a freelancer. Why? Because most freelancers have almost no business insurance which means you’ll lose time and money if you’re sued and you’ll likely have to go get a “real” job again when it’s over.
Freelancers need business insurance.
PROFESSIONAL LIABILITY
If you’re providing a service or working as a consultant, there’s an expectation from your clients that you’re a professional who knows what you’re doing. They’re relying on your expertise and abilities. When things go wrong, especially in a way that costs your client money, they might sue you. Professional liability insurance, also known as error and omissions (E&O), will protect you if an unhappy client decides to take you to court on claims of negligence or faulty work.
GENERAL LIABILITY
Many freelancers work alone in a home office or a coffee shop but that doesn’t mean you won’t meet with a client. General liability covers property damage or bodily injury you cause another person. Did you spill hot coffee over that new business client you were trying to impress? Did they trip over your laptop bag? Did you accidentally ruin their $1000 laptop and all the irreplaceable files on it? You’ll need general liability insurance.
CYBER LIABILITY
Remember when we said freelancers work digitally? This means you’re gathering or creating digital data for a client – graphics, images, files. If you have a website, it also means you’re taking personal information from people – name, address, and even credit card information if you run an ecommerce store. What will you do if your website is hacked and the information is stolen? What about if you lose your laptop, phone, or the memory card that holds all of your data? Worse, what happens when a client or customer realizes you’ve compromised their personal information or lost irreplaceable files? Cyber liability insurance will protect you in a lawsuit, help you pay the damages or settlement, and cover the cost of notifying everyone affected by a breach.
The freelance life has a lot going for it. Doing work on the beach or working on your own schedule are just some of the perks. But one angry client or lost piece of data can ruin your career and your business. Make sure you have the insurance to protect you and your business.
Contact us at Charlotte Insurance today to discuss your freelance business and the types of insurance that will offer the best protection.