Most businesses will face some level of risk, and insuring against these risks may be a good idea. The level of risk and subsequently the amount you might pay to insure against these can vary widely depending on the type of work you do.
There are three main things to consider when deciding whether to take out business insurance:
- Could you afford the cost of a claim? The cost of any claim will likely far outweigh the cost of purchasing your insurance.
- Do you have a legal obligation? Whilst less common for freelancers if you have staff, even if they are part time or temporary, insurance is a legal requirement. You could be fined if you don't have it in place, with the certificate to prove it.
- Will insurance open more job opportunities? Some clients will require adequate insurance to enter into a relationship with you as a freelancer.
Knowing what insurance you need can be confusing. As a freelancer, depending on your work, you may be more likely to take steps to cover against accusations of copyright infringement, for example, or public liability should a member of the public have an accident as a result of the presence of your equipment.
Below, we've listed some of the most common risks that freelancers are likely to face and how to take steps to protect against them.