If you run your own freelance business, you’ll probably appreciate the freedom that this can give you, as well as the specific challenges it can bring. You may be an old hand at it and completely comfortable managing your own schedule and financial affairs. On the other hand, perhaps you’re new to freelancing and feel a little daunted by all the things to consider.
When you first start out as a freelancer, insurance may not be your number one priority. However, it could be wise to sort out adequate protection early, to be sure that you and your work are fully covered from the offset.
Here are 3 initial points to think about:
Do your ‘home work’
If you work from home, make sure that you’re not invalidating your home insurance. Most standard home insurance policies will not cover you if you’re using your home for business purposes. The definition of ‘business purposes’ may vary between providers, so take the time to read your full policy wording carefully. Typically, just using a spare room as an office should be fine, but make sure you check with your chosen provider. There can also be various home working expenses you can claim back – see our Guide to Home Office Expenses).
Tools of your trade
Whatever your work, you’ll no doubt have some essential items that are vital to your income. Don’t assume that all your business assets are automatically covered under your contents policy. Electrical equipment like laptops and iPads will normally require additional cover and will need to be specified on your policy.
If you take items out of your home, they may not be covered by your contents insurance. If you have tools or equipment that regularly accompanies you on client visits or other trips – make sure your policy stretches to cover any damage that happens away from home. If in doubt – talk to your provider.
If things go wrong…
We all know that in business, things don’t always run smoothly. Mistakes can happen and accusations can fly. If you offer a professional skill or knowledge to clients, you could be at risk of a negligence claim. This could be anything from a piece of flawed advice to a missed critical deadline. Even if it’s a spurious claim, the legal costs involved in defending your reputation could be difficult for you to meet. This is where professional indemnity insurance could come in handy. It could help cover you financially if a negligence claim was made against you.
If you regularly come into contact with the general public through your work, it may also be worth considering public liability insurance. If your work injures someone, you could be faced with hefty a compensation claim.
