Freelance Insurance

As a freelancer, you get the freedom of working independently, but even with all the independence, you still face a number of unique risks. 

 

Freelance insurance is essential for safeguarding your company, earnings, and reputation, whether you’re a graphic designer, writer, consultant or something else.  Before you can protect your business and livelihood, it’s crucial to understand your coverage options. 

 

Jump To: 

• What is Freelance Insurance?

• Why Do Freelancers Need Insurance? 

• Who Needs Freelance Insurance? 

• What Types of Insurance Do Freelancers Need? 

• How Much Does Freelance Insurance Cost? 

• FAQs

• Get Freelance Insurance Today!

What is Freelance Insurance? 

Freelance insurance is a type of specialized business insurance designed to help shield certain self-employed professionals from financial losses brought on by lawsuits, property damage, or other accidents. Since freelancers don’t have many of the built-in protections that other businesses have, investing in insurance is vital for maintaining long-term stability and peace of mind. 

Why Do Freelancers Need Insurance? 

Even though freelancers don’t usually work in traditional business settings, like all professionals, they can experience job-related risks. This risk can lead to expensive legal fees, lost wages, reputational damage, property damage and much more. Here are some of the main reasons why all freelancers should consider getting specialized business insurance: 

 

• Client Agreements: For many clients and businesses, it’s a standard practice to require proof of insurance, before hiring or partnering with freelancers. 
• Errors and/or Accidents: Misunderstandings, mistakes, or other unintentional damage can result in costly lawsuits. 
• Property Protection: If property used for work-purposes, such as tools, laptops, or cameras are damaged, you won’t be able to work. Insurance can help replace the costs of these assets. 
• Wage Replacement: In certain cases, insurance can offer financial assistance if your operation is closed down due to property damage or other circumstances. 

Who Needs Freelance Insurance?

Freelancers come from a variety of different backgrounds, but no matter the specialization, they all need sufficient insurance coverage. Some of the different freelancers who should consider getting protection through a freelance insurance policy include: 

 

• Graphic Designers
• Consultants
• Web Developers
• Writers and Editors
• Photographers
• Videographers
• IT professionals
• Event Planners
• Contractors and Handymen
• Personal Trainers and Fitness Instructors

What Types of Insurance Do Freelancers Need? 

All freelance businesses have unique needs and risks. In other words, not every freelancer will require the same types of insurance policies. With that being said, here are the most common kinds of insurance coverage that freelancers should consider: 

 

• General Liability Insurance: An essential type of policy that protects against claims relating to third-party bodily injury, third-party property damage or advertising damage stemming from freelancing services. 
• Professional Liability Insurance (Errors and Omissions Insurance): Protects freelancers who provide professional services like consultants, financial advisors, healthcare professionals and legal professionals. This coverage covers claims of negligence, faulty advice, or failure to deliver promised services. 
• Commercial Property Insurance: Covers the costs to replace or repair damaged property in the event of a fire, storm, robbery or vandalism. Covered property generally includes, private offices, home offices, work equipment, inventory and furniture. 
• Business Owners Policy (BOP): A combination policy that provides both general liability and commercial property insurance for freelancers who need both. This policy generally comes at a discounted price compared to purchasing each policy separately. 
• Business Interruption Insurance: Provides financial support if a business is forced to shutdown temporarily due to a covered event. Funds can be used to replace lost income, pay for a temporary work space, pay taxes and other fixed expenses. 
• Cyber Liability Insurance: This coverage protects business against cyberattacks, data breaches and other technological attacks. It helps to pay for costs associated with data recovery, client notification and other legal costs. Cyber liability is essential for any freelancer dealing with large amounts of sensitive data.
• Tools and Equipment Insurance: Essential for freelance professionals like contractors who use tools, and machinery on a daily basis. This unique coverage pays for the replacement or repair of tools that are stolen or damaged while working. 
• Workers’ Compensation Insurance: Legally required if you have employees, or hire subcontractors (in all states except for Texas). This coverage works by providing employees who become injured or sick due to work-related factors with funds to cover lost wages and medical bills.
• Commercial Auto Insurance: Freelancers who use vehicles in their day-to-day operations are likely legally required to obtain a commercial auto insurance policy (all states except New Hampshire). It helps to cover the costs associated with vehicle accidents like property and injury claims. 
• Health Insurance for Freelancers: Freelancers need their own health insurance policy since they work for themselves and can’t rely on an employer-sponsored plan. Whether opting to get a traditional plan or a unique alternative like an ICHRA, most health insurance works by providing access to essential healthcare benefits like doctors visits, prescription drugs, hospital stay, preventative care and much more. To read more about all of your health coverage options, read out individual health insurance overview page.

How Much Does Freelance Insurance Cost? 

The cost of freelance insurance varies greatly depending on a number of factors. Here are some of the things that insurers consider when determining policy rates: 

 

• Location: Local laws and risks may affect the cost of coverage. 
• Industry: Industries that have higher risk factors may have to pay more for their policies. 
• Claims History: Freelancers with an extensive history of lawsuits or claims may experience higher insurance costs.
• Coverage Limits: The higher your coverage limits are, the more protection a policy provides, but that also means it’ll be more expensive than a policy with a low coverage limit. 
• Number of Policies Needed: Freelancers needing multiple polices will pay more overall than someone who only needs one policy. 

Below are the average costs of some of the most common freelance insurance policies. Keep in mind that the averages may not reflect the actual amount that you’ll pay for a policy, and it’s best to work with a professional broker like EZ.Insure, to get an accurate quote:

 

• Business Owners Policy (BOP): $50-$60 per month.
• General Liability: $30-$50 per month.
• Professional Liability: $60-$75 per month.
• Cyber Liability: $100-$200 per month. 
• Commercial Property: $40-$60 per month. 

FAQs

Is freelance insurance required by law? 

No, in general freelance insurance is not required by law. With that being said, there are some cases where you might have legal obligations. For example, if you have employees or subcontractors, you may be required to obtain a workers’ compensation policy. 

 

Additionally, if you use a vehicle in your work operation, you may be legally required to obtain a commercial insurance policy. Lastly, some clients may require proof of insurance for general liability insurance or other policy types before hiring you. 

 

What qualifies you as a freelancer? 

If you are an independent contractor who earns money on a per-job or per-task basis, you’ll typically be defined as a freelancer. Freelance work is also generally based on short-term agreements, unlike full-time employment. 

 

What insurance do I need as a self-employed consultant or freelancer?
Each freelancer has their own unique set of business challenges and risks that will determine the specific policies necessary for an operation. With that said, many freelancers start out with a general liability insurance policy, which protects against third-party claims of bodily injury, property damage and advertising damage. Another popular option is a Business Owners Policy, which provides both general liability and commercial property insurance coverage.

 

Can I deduct freelance insurance costs from my taxes? 

Yes, in most cases freelancers are able to deduct business insurance premiums from their taxes. To be clear on your unique tax situation, it’s always best to consult with a tax professional. 

Get Freelance Insurance Today with EZ.Insure!

Being a freelancer presents its own set of unique challenges, but getting insurance doesn’t have to be one. Whether you’re looking for  a comprehensive business insurance policy, or health insurance benefits, EZ.Insure has solutions tailored to your specific needs. 

 

Our platform makes the process simple and quick giving you access to instant, no-obligation quotes, side-by-side plan comparisons, and 24/7 expert advice from our licensed agents. Don’t go uncovered any longer, instead, get the coverage you deserve with EZ.Insure! 

 

To get started, click the button below to get your free, no-obligation quote, or call us directly at (844)-770-0876.