How Freelancers Can Also Benefit From Insurance

By Steve Siebold

One of the best perks of freelancing is that it gives you a myriad of freedoms. You are your own boss, you can work whenever you please, and you can plan your work-life independently. Apart from a little bit of pressure from clients every now and then, there’s no one bossing you around. However, these freedoms also come at a cost. As a freelance worker, you are your own marketer, supervisor, and HR manager. If you were to fall ill or sustain an injury that leaves you unable to work, no one will compensate you for the time you spend recovering. This is not meant to scare anyone but freelancing also has a plethora of risks attached to it. Whether you’re already into it or you’re just considering leaving your day job to get into freelancing, it is important to know the benefits of having insurance as a freelancer and how it can benefit you. Without further ado, here are some hacks on how freelancers can also benefit from the insurance.

Liability Insurance

As a freelancer, depending on the kind of work you do, you could work from home or visit your client’s home/workplace to deliver your services. In both cases, liability insurance can benefit you. “But how exactly?” one may wonder.

If, for instance, a client comes to your home office and they trip and fall due to a slippery floor or they get bitten by your aggressive dog, they can make claim compensation for any injuries they sustain from the incident. In this case, carrying general liability insurance can help cover such claims and absolve you from liability. In other words, any claims or lawsuits that result from such an incident will be your client versus your insurance company. Liability insurance can also cover you in case you accidentally break valuable possessions or cause similar damages while on the client’s premises.

On the other hand, if a client hires you for services that require you to visit their home in Arizona, and you end up sustaining a personal injury, such as a trip-and-fall while (legally) at their home or business premises, you could also qualify for compensation under personal injury law. In this case, your client’s insurance company should compensate you for the pain and suffering that results from such an accident and in case they happen to decline your claim, experienced Tucson injury attorneys can explain why and help you get started with the process of filing a lawsuit against them, if at all they don’t agree to settle. As long as you’re on their property legally, every employer or property owner is required to observe the duty of care and if it can be proven that your injury occurred as a result of negligence, then getting you compensated for your pain and suffering becomes easier.

As you can see, liability insurance is a double-edged cutting sword that can benefit a freelancer in various scenarios.

Coverage for Professional Liability

Just like any other professional, freelancers may also need and benefit from professional liability insurance, which is also commonly called professional indemnity insurance Errors & Omissions Insurance or simply E&O. When rendering your freelance services, it is always your responsibility to ensure that you deliver your best work as per your industry’s standard safety protocol, which means without making errors or omitting certain steps/procedures. If a major problem occurs after you’ve rendered your professional services or given advice to a client, they reserve the right to make claims against you for the damages suffered.

For instance, a client calls you to repair their faulty HVAC unit and in the process, you make an error that leads to a completely damaged compressor. That simple mistake could cost you money that would require tons of hours of work to pay back in case the client demands compensation. With professional indemnity comp for freelancers, however, you’re covered in case such an incident ever occurs. PLI, in most cases, protects you from liabilities that a general liability policy may not be able to cover.

Auto Insurance

Especially if your freelance business requires you to visit clients at their homes or places of business, there’s a high likelihood you’ll need a vehicle to make navigation easier while improving efficiency and promptness of response. Let alone service delivery, you may need one for use in your marketing errands too, sooner rather than later. In this case, commercial auto insurance can benefit you in the event of a collision that results in injuries or damage to property.

Home and Equipment Insurance

If you work from home as a freelancer, chances are that you have a home office. In the event of a fire, burglary, or a weather-related catastrophic event, your business could easily go down the drain, not forgetting the high costs you’d incur before getting back on your feet. If you have home insurance, however, the financial and emotional toll can be reduced and getting back to business becomes easier. Additionally, commercial property insurance can help cover your work-related tools and equipment in case of severe damage, theft, or loss without having to worry about dents in your wallet.

Health Insurance

As mentioned in the intro, being ill for a few days can put a big dent in your revenues as a freelancer. This is because you have no employer to pay you for sick leave nor cater to your medical expenses. At the very least, it pays to have a health insurance plan to cover your medical costs whenever you fall ill and you can’t work. Thankfully, it’s not that hard to find a medical insurance policy that works for you as a self-employed individual. As long as you keep current with your premiums, health insurance can have a huge positive impact on your freelance business in the long run. In case your freelance income is not very consistent, you could also ask your spouse to include you as a dependent on their health plan if they’re employed. It’s a win-win situation for employer-based health plans are usually cheaper.

Life insurance

Life insurance is a great way to ensure that your family will be taken care of and relieved from financial burden while you’re gone. Various organizations offer freelancers the opportunity to get life insurance at affordable rates, so do your homework well and you can keep your family’s future is protected in the event of your demise.

Insurance can benefit you in many ways as a freelancer. While many insurance companies will ask for proof of income, there are many options out there for freelancer insurance. You just have to do your homework well and seek advice from the right brokers to secure yourself the best policies that the world of insurance has to offer to freelancers.

Steve Siebold is author of 177 Mental Toughness Secrets of The World Class and How Rich People Think, and is a psychological performance and mental toughness consultant to Fortune 500 management teams, professional athletes, entrepreneurs and other top performers.

Get started image

Ready to get started?

Get the expert support you need

Start Now

Related Articles

When You Are Self-Employed, What Insurance Do You Really Need?

by Team ZenBusiness, on May 26, 2023

Insurance Guide: Liability Insurance For The Self-Employed

by Team ZenBusiness, on May 26, 2023

Risky Business

by Janet Attard, on May 26, 2023

The Insider’s Guide To Insurance In The Gig Economy

Steve Strauss, on May 26, 2023

Steps To Take After A Construction Site Injury

by Team ZenBusiness, on May 26, 2023

Life Insurance For Small Business Owners – Would Your Business Survive Without That Crucial Employee?

by Team ZenBusiness, on May 26, 2023

Start Your $0 LLC Today