9 Insurance Questions For Freelancers To Ask Their Insurance Broker
Do you make your living doing freelance work? If so, insurance should be one of your most important considerations.
Being your own boss has its benefits, but it also leaves you vulnerable to many risks. An unintentional accident can lead to accusations of negligence.
Disgruntled clients can file lawsuits. Natural disasters, a slip and fall, or damaged equipment can leave you unable to do your job or facing large replacement costs and liability payouts.
And, sometimes things are out of your control. When something goes wrong, people look for someone to blame.
As a freelancer, you may find yourself with a lot of fingers pointing in your direction.
Even if you are innocent, legal costs can add up. Lawsuits are rampant, people make mistakes, and unexpected things happen.
So, it is imperative that you sit down with a knowledgeable broker, discuss the value of the various types of coverage, and take the steps to make sure that you are protected for every possible scenario.
Here are a few questions that you should ask:
1. What Type Of Insurance Policies Are Available To Freelancers?
The two most common types of insurance are “general liability policies” and “errors and omissions policies”.
However, there are also several other types of insurance that you may want to consider, depending on the type of freelance work you do.
2. What Does Liability Insurance Cover?
This type of insurance is designed to protect you against accidental damage or loss that may be caused to someone else or their property.
If someone is hurt during a slip and fall at your home office or suffers injury to their reputation or character as a result of your work, you face the possibility of a lawsuit.
Since damages can be in the thousands (or even millions) of dollars, liability insurance is the best way to protect yourself and your business.
3. What Does Errors And Omissions Insurance Cover?
This type of insurance protects you if someone claims that you have been negligent in your work. Sometimes a client, or even a former client, will allege that a financial loss is a result of an error or accidental omission on your part.
If this is proven to be true, you may be responsible for any damages awarded. As a freelancer, E&O insurance is a great investment if your work puts you at risk for this type of liability.
4. Am I Covered Under Home Insurance?
Just because you work from a home office, don’t assume that your home insurance will cover your business.
Some companies require that you have a separate policy to cover loss or damage to electronics, equipment, documents, or other job related items. Ask your broker to be clear about the details.
You don’t want to be disappointed when you are facing thousands of dollars worth of damage.
5. Should I Buy Business Interruption Insurance?
This kind of insurance will ensure that you still have an income if you are unable to work due to a natural disaster.
Some incidents may be exempt (like earthquakes in California) unless
otherwise indicated, so read the agreement carefully and make sure you are clear on the terms of your policy.
6. Do I Need Cyber Liability Insurance?
If your job requires you to have access to a client’s or organization’s personal or private data, then you should probably consider this type of insurance.
The internet holds a lot of opportunity for freelance workers, but it is also vulnerable to hackers who can gain access to sensitive information by infiltrating your computer or network.
Cyber liability coverage offers protection against loss, theft, or breach of data, and should be a part of your insurance portfolio if you do a lot of business online.
7. Should I Have Disability Insurance?
If you get injured and can’t work, this type of insurance will ensure that you can still pay your bills. Your broker will evaluate your job and lifestyle and help you decide if disability insurance should be a part of your protection plan.
8. What Do You Recommend?
Most insurance brokers are experienced business advisers and are trained to help you assess your needs. Go through all the forms and information sheets carefully and ask your broker for their expert advice.
But, remember, the decision is ultimately yours. So, make sure that you are getting the coverage that makes you feel comfortable and secure.
9. Does The Broker (Or The Company They Work For) Have Professional Indemnity Insurance?
You are trusting your broker with your insurance needs, so you want to know that you have some protection or recourse if you are given the wrong advice.
Don’t be afraid to ask your broker if they (or the company they work for) carry this type of insurance themselves.
TIP: Before you make a final decision, go through each policy carefully and read all the details.
Even if you are happy with the type and range of coverage being offered, don’t hesitate to shop around. You might find the same, or even better, options somewhere else. Just make sure to use a licensed broker. That’s the best way to guarantee that you are getting reliable and expert advice.
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Disclaimer
The advice provided on this website is general information only. It has been prepared without taking into account your objectives, financial situation or needs. It is general advice for freelancers about the questions they should ask a professional advisor. Before acting on this education material for freelancers you should consider the appropriateness of the material, having regard to your own objectives, and seek detailed personal advice from an appropriate professional.
