Professional Indemnity Insurance for Freelancers

If you’re a freelancer or self-employed it can be hard to know what kind of insurance you need. Whether you’re providing a service or advice, or a product or service, you could be at risk of a client or other third party bringing a claim against you for damages, if you make a mistake or don’t provide a good service.

This is where Professional Indemnity Insurance comes in handy. It’s also known as Errors and Omissions (E&O) insurance, and it can be purchased alongside other types of cover that a freelancer may need.

It is a great way to protect you and your business from the unexpected costs of claims and litigation, and it can also help you keep your head above water if things go wrong with your work.

You can get professional indemnity insurance for all sorts of freelance businesses, including design, marketing and IT services, and it will protect you against any type of claims or allegations made by clients or other parties. It can also help you defend any legal action taken against you if you’re sued for errors and omissions.

One of the most important reasons you should have professional indemnity insurance is to protect your reputation if you make a mistake or fail to deliver a high standard of service. It can cost you hundreds of thousands to defend a claim if a client or other party believes that you haven’t delivered a high quality service.

The costs of a legal action can be prohibitive, even if the court rules in your favour, so it’s always best to have a back-up plan. It’s especially important if you’re working on a contract basis and you have a number of clients that are likely to bring a claim against you.

Public liability insurance is another policy that most businesses have, and it covers you against any claims made by members of the public who are injured or damage property as a result of your negligence. It can be particularly useful for freelancers who spend a lot of time travelling to client sites, or who are often based from home offices.

It’s also worth thinking about getting cyber liability insurance if your business is involved in the creation of online content or data, or if you run an e-commerce website or app. This will cover you against any potential damage to a client’s reputation or computer system, as well as losses that occur due to downtime as a result of a cyber attack.

This can be costly, but it’s a necessary part of the freelancing game if you’re a designer or other creative who provides a service that involves dealing with intellectual property or storing client information. Many clients will only use freelancers that have this protection, so it’s worth considering this if you aren’t already covered by your business insurance provider.

The best way to find out what types of cover you need is to talk with a broker who can provide advice on the right type of policies for your particular freelance business needs. They can also recommend insurers who specialise in insuring small and medium-sized businesses, so that you can be sure that you’re getting the cover you need at a price that makes sense.