Insurance policies for freelancers

Being a freelancer or independent contractor comes with many benefits such as control over your work and career. However, freelancers do miss out on certain valuable perks, namely employer-provided insurance coverage.

Health insurance is the most talked about employer-provided coverage, but there are many other business-related policies relevant to a freelancer. What insurance policies are necessary to keep you and your business secure?

Professional liability insurance

An employer will have liability insurance that covers any problems that may arise from the actions of their employees. Freelancers must usually purchase their own coverage. Liability insurance protects you in the event of a lawsuit related to monetary or other damages incurred as a result of your work.

Insurance covering your home office

While there are not many firms that offer home insurance coverage for their employees, most jobs do carry insurance covering items at the office, including computers and tablets. Once you work for yourself, you need insurance that covers the items in your home office. Keep in mind that standard homeowners’ policies will usually not cover items used for business purposes.

Auto insurance for business purposes

If you use your car to visit clients or attend meetings, you are using your vehicle for business purposes. Such business use may not be covered under a standard auto policy. Check with your insurance agent to see if you need to take out special coverage for the business use of your vehicle.

Business interruption insurance

An interruption in business due to a natural disaster can be particularly difficult for freelancers, leaving them without income for a long stretch of time. This type of insurance can replace much of your income in the event of a natural disaster.

Disability insurance

For many, if they must go on disability, they will be covered at least in part by their employer. For freelancers, it is an immediate end to their income stream. Disability insurance gives freelancers the security of knowing that a temporary or permanent disability will not render them unable to provide for themselves and their family.

Life insurance

For freelancers and independent contractors, life insurance can be tricky, especially when it comes to showing income in order to get the coverage level you need. However, this is an important policy to have. Look for companies that know how to work with freelancers and independent contractors when drawing up policies.

If you are uncertain where to look for any of these policies, work with an experienced insurance broker.