When working freelance, you have flexibility regarding what hours you work and where – not to mention which companies or individuals you work for. In the UK, there are more than five million freelancers, reports Startups.co.uk; however, have all of them suitably insured their work?
If you work freelance or intend to, you should remember the riskier implications of this kind of work. Whereas a full-time job can provide the safety net of a regular salary, unexpected problems with your home office or work equipment could seriously compromise your financial security. Losing a legal battle and needing to pay big legal fees and compensation could have a similar effect.
There are various forms of business insurance that you should consider if you want to counter an array of financial risks that freelance life could bring. Here are good examples of such insurance.
Public liability insurance
Your freelance work might not always be home-based. It could occasionally take you to other people’s offices, where you would be obliged to be careful not to accidentally injure anyone or damage anything belonging to the client.
If such accidents did happen, you might need to fund a fight against a lawsuit which, if you lose, could also require you to pay compensation. Fees and medical bills are other potential expenses; however, all of these costs could be covered if you have public liability insurance.
This type of insurance can be described most simply as insurance that covers you for mishaps involving either property – besides your own – or members of the public. Accidents for which this insurance could cover you include injuries to colleagues or passersby, damage to crucial pieces of equipment, and flooding or fire in a building.
An especially big advantage of having liability insurance is that, as you could much more easily defend a claim, you don’t have to be forced to settle, Money Donut explains. The insurance can take much of the risk out of waging a legal battle.
Professional indemnity insurance
Your job may require you to provide expert advice; this could be the case if, to list some examples, you are an accountant, lawyer or financial advisor. Still, hard though you might try to give sound advice, you can’t entirely rule out the possibility of that guidance negatively affecting a client’s bottom line.
Should that indeed occur, whether the client is a company or individual, they may react by taking legal action against you and seeking compensation. If you are a doctor or dentist, a patient might do the same thing should they suffer due to a misdiagnosis made on your part.
However, by taking out professional indemnity insurance, you can help yourself fund both a legal clash and compensation if you fail in that tussle.
Having a workplace as down-to-earth as your home wouldn’t strictly mean that you don’t rely on specialist equipment or machinery to do your job. Obviously, a professional photographer or filmmaker could regularly use a high-end camera, while even freelance writers can still each need a basic laptop. Therefore, it could hinder your work routine if such items are broken or stolen.
Furthermore, getting such items repaired or replaced to enable you to pick back up your familiar working habits can burn large amounts of not only money but also time if you need a lot of the latter in order to raise the necessary money. However, with contents insurance included as part of your home insurance, you could arrange for repairs and replacements more efficiently.
As there are many different content insurance policies, you could struggle to decide on the best such policy for you. Fortunately, the UK-based Call Wiser insurance broker can compare various policies on your behalf before giving you a quote for the most fitting one it can find. Be Wiser, a sister brand of Call Wiser, can similarly help you source public liability and professional indemnity policies.