What are your Insurance options as a Freelancer? Your guide to freelancer insurance.
Posted on 31st July 2017 by Katherine Ducie
Running your own business day to day, reaching out finding new clients and building your portfolio are all pretty terrifying; but as a new Freelancer the word that appears to send a shudder down even the most confident freelancers back is ‘Insurance’.
Don’t worry you can open your eyes now, we know it can be scary, exploring your insurance options as a freelancer is daunting. How do you know what is best for you? What’s affordable and fitting to your business?
We know there’s a lot of options but we don’t want you to panic; we’re here to help. To get you up and running as quickly as possible we have put together this quick step guide to help you understand what your insurance options are as a freelancer starting out.
Top Insurance policies to consider
The main insurances you will usually be required to hold to comply with your contract, will be Professional Indemnity, Public Liability and Employers Liability.
Whilst these are normally contractual requirements it is well worth having them even if your contract does not specify. This allows you to limit the exposure you are placing on your business and pitch for more work, employers love to know you are prepared with your own insurance.
| Insurance Cover | Description | Example of when Insurance comes in handy | Price starting from |
|---|---|---|---|
Professional Indemnity Insurance | Professional indemnity insurance can cover you for mistakes including:
| As part of your role you are required to undertake calculation work. A simple error could result in project down time and huge financial loss.This mistake could come from something as simple as making an error when typing your calculations. | Starting from £98. |
Public Liability | Public liability insurance covers you for the cost of a claim from a third party (not employee) that has suffered injury or property damage caused by you or your employees as a result of their negligence. | Imagine you are visiting a client and you spill coffee on their laptop. Your PL cover would help cover the costs of repairs on the laptop or cover the costs of arranging a replacement.A potential client comes to visit you and they slip inside your premises. Your PL Insurance would help cover costs of defending a claim and settle costs incurred. | £112 Public Liability is part of our Business Combined Package. Included in this package is Employers Liability and Equipment Cover. |
Employers Liability | Employers liability, can help cover you in the event that one of your employees is injured in the work place. | You are required to ensure you provide a safe working environment for your employees.What if an employee fell over in your office, or a piece of equipment injured them. If the employee pursues a claim for your negligence the Employers Liability Insurance will help protect you. | £112 as part of our Business Combined Package. |
Equipment Cover | Equipment Cover, provides cover for your business equipment. This cover is provided on an “All Risks” basis. | You are a photographer on a shoot. Sadly, your camera accidently gets damaged on the day. Your Equipment cover will provide a safety net allowing you to have your camera fixed or replaced in the nick of time. | £112 as part of our Business Combined Package. |
Personal Accident, Sickness and Travel | Personal Accident cover can be an essential policy for freelancers in the event of an accident or injury which prevents you from undertaking your role.As an extension to this policy, you can also purchase sickness cover, this will protect in the event of an unexpected illness that leaves you unable to work. An additional benefit is you can extend your policy to cover you for business and or holiday travel. | Personal AccidentImagine being at work and unfortunately suffering a traumatic fall. Or you are on your way to work and are part of a road traffic accident. This fall or RTA has resulted in broken bones. You would be unable to work, resulting in a loss of income. Your PA cover would help you stay on top of your finances by providing you with income from a sickness benefit. Meaning no missed bills. Sickness cover Sadly, if you were to be taken ill and unable to work for the foreseeable future, how would you pay your bills? This is where your sickness cover would help, offering you the financial support to keep paying your bills on time without any risk. Business and holiday travel: This will assist in the event that your flight is cancelled, or your luggage is lost in transition plus much more as well as the added benefit if you were to fall ill abroad. | Prices starting from £36.44 Sickness, Business and Holiday travel will be an additional charge. |
Tax Enquiry and Legal Expenses | Tax Enquiry and Legal Expenses provides a multitude of cover.Under this policy you be covered for:
| When HMRC begin an IR35 investigation into your limited company. It is important that you have an expert handling your case to guide you through the process and ensure all documentation is correct.Legal costs can also add up; If an invoice isn’t’ paid by a client and you need legal help in order to retain the money owed. Claiming on your Tax Enquiry and Legal Expenses policy can also help front the costs of legal representation in the event of an IR35 investigation. | £75 |
If you have any further questions, don’t hesitate to get in touch. Please call: 0333 321 1403
Click here to find out how much you could save on your insurance
Related Articles:
Personal accident and sickness insurance.
Prices correct at time of publication. For an up-to-date quotation please call 0333 321 1403
Useful Links
Professional Indemnity Insurance
Protects against claims of alleged negligence in your professional services, advice and designs.
Public Liability Insurance
Protects against claims of injury to third-parties or damage to a third-party's property.
Employers' Liability Insurance
A legal requirement for anyone employing staff. Protects your business in-case an employee is injured at work.
Personal Accident Insurance
Cover for work injuries, illnesses caused by work and compensation awards.
Directors and Officers Insurance
Protects your assets in the event of a claim. You may be held personally responsible for your business action and will have unlimited personal liability.
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