Why Business Insurance Is a Must for Freelancers and Independent Contractors

Freelancers and independent contractors often enjoy flexible work arrangements, including the liberty to choose jobs and projects according to their needs and skill sets. However, while curating your day-to-day work and being your own boss may be convenient and enjoyable, you may also need to bear significant risk levels by yourself. Despite your best efforts and due diligence, even the most skilled freelancers and independent contractors may eventually need insurance.

What Types of Business Insurance Are Essential?

Business insurance is a general term that may refer to many different combinations of policies, coverages and endorsements. Whether insuring a large corporation, small business or independent entity with a sole proprietor, business insurance packages must be tailored to meet policyholders’ unique circumstances. Still, several types of policies may transcend industry lines and specific details of your situation, potentially providing valuable financial protection regardless of your sector or specialization.

Think about how the following types of insurance may help secure your interests and assets:

• Professional liability insurance—Also known as errors and omissions insurance, these policies are critical for freelancers and independent contractors, as they may help offset legal costs and losses should a client allege that you made a mistake or otherwise provided inadequate services.

• Business interruption insurance—As an independent business entity, you may struggle to promptly regain your footing following incidents disrupting your operations. Fortunately, this type of coverage can help you recoup lost income and manage ongoing expenses.

• Commercial property insurance—If you rely on tangible assets for your work, such as tools, electronics and equipment, this type of coverage can help you repair, restore or replace them following covered incidents.

• General liability insurance—This type of policy can offset other parties’ losses and resulting legal expenses if you’re at fault for an incident, such as if you damage a client’s property or damage another business’s reputation.

• Commercial auto insurance—Freelancers and independent contractors often rely on their own vehicles to travel between jobs and meet with clients. Even if you’re using a personal vehicle, doing so for business purposes typically requires this type of policy.

• Cyber liability insurance—In the digital era, this type of policy may be critical, as you could face significant losses and expenses following a data breach or other cyber incident, such as those in which your clients’ data is compromised.

We’re Here to Help

At Baker Insurance Group Inc. in Fort Myers, Florida, we understand that freelancers and independent contractors may require robust loss control measures to maintain financial stability. Contact us today to explore coverage options and compare quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.