Is Business Insurance Necessary for Freelancers?

Business Insurance

As a freelancer, you are your boss, and this can be very glamorous and enjoyable. However, with such great responsibility comes equally great risk. Being your boss means you do not have the luxury of protection that an employee has under their employer’s insurance policy. Regardless of the industry in which you work as a freelancer, you cannot predict how every transaction or deal will go. Therefore it is best to be prepared for the future with the right policy in place.

What Is Freelancer Business Insurance?

This is a general term for the different kinds of insurance policies that can protect a freelancer. It is important to note that a personal insurance policy is incapable of providing all the possible types of protection that a freelancer would require. Damage to property or third-party bodily injury can lead to court cases that can drag on for long, consuming a lot of time and money that you might not have.

Types of Freelancer Business Insurance

The uncertainties involved in freelancing are a major reason why some form of coverage is needed. Here are a few examples of common freelancer insurance options:

  • Business Owner’s Policy
  • Property Insurance
  • Liability Insurance (General, Professional, and Cyber)
  • Bonds
  • Auto Insurance

The liability insurance options provide coverage for legal expenses, should your business be linked to any form of injury, insult, professional misconduct, or data breach. Some of these incidents can happen suddenly, and without an insurance policy, paying for such liabilities may drain your resources.

The commercial property insurance covers your business equipment replacement cost should they be damaged, stolen, or affected by any other condition as specified in the policy terms.

Auto insurance will come in handy for your business-owned or hired vehicles and cover medical, legal, and other related expenses, should there be an accident or robbery.

Importance of Freelancer Business Insurance

In addition to the protection that these policies offer you as a freelancer, they are also necessary if you desire to be taken seriously by prospective clients and business partners. For example, you cannot apply for some jobs without having at least general liability insurance. Also, if you need to rent an office space, your landlord would want to know if you have a policy in place to cover any future damages.

Regardless of the industry you function in, freelancing is as open to risks as any other business venture. Hence, it is in your best interest to be adequately protected. Go over the available plans with credible insurance experts and find a policy that suits you. This will give you peace of mind to go all out for your business, boost client’s confidence in your ability to deliver, and save you unnecessary stress in the event of any problem.

Contact the team at American Premier Insurance, serving Phoenix and neighboring cities in Arizona, to get access to the right business insurance for your needs.