Business Insurance Policies for Freelancers and Contract Workers


You've completed a full day of work with your dream client. You return to your home office to find it's been torn to shreds and most of your equipment is gone.

Hopefully, this will never happen, but if it does, you might rely on your business insurance. Even if you work as a freelancer, having adequate coverage can help protect you in the worst-case scenario.

Keep reading to learn how business insurance can benefit you and about the types of coverage to consider.

Benefits of Business Insurance

As a freelancer or contract worker, you may wonder why you should pay for insurance. It's one more expense that can cut into your profits, and you might already have a volatile income.

However, consider the following reasons why it could be worth considering insurance for your business.

Help Protect Yourself

Working as a freelancer can be risky. If something goes wrong, you could lose out on revenue or clients, or you may need to replace your equipment.

You could face anything from a cyberattack to a natural disaster in your home office. Depending on the type of policy you have, your coverage can help protect you if something bad happens. The amount you spend on your premium could be well worth it for the protection.

Help Attract More Clients

If you're struggling to obtain clients for your freelance business, consider if anyone has rejected you due to a lack of insurance. Some companies may require freelancers to have their own insurance coverage before working together.

Depending on your industry, you could miss out on a lot of work when you do not have insurance. Consider if you had to turn down a contract because it required insurance.

Even if a client doesn't require insurance, showing proof of coverage may give them “peace of mind.” This could help you convince new clients to sign up with you over your competition.

Help Save Money

It may sound counterintuitive, but adding business insurance to your budget may help you save money. Should something happen to your business, from a natural disaster to a burglary, you might have to replace equipment and inventory.

Without coverage, those costs could fall on you. Meanwhile, if you have insurance coverage, the policy could kick in to help cover the cost. You could also get help with legal fees in the case of a lawsuit.

Business Insurance Policies for Freelancers

If you're serious about growing your freelance business, you should consider some of the types of coverage you might need and how they can help you. Each policy is a bit different, as is every business.

Think about your needs and the type of work you do. That way, you can obtain the coverage you could be looking for to help make running your business much smoother.

Home-Based Business Insurance

Many freelancers work from home because it can be easier and more affordable than a commercial office. If you're starting a home-based business or already have one, you should think about home-based business insurance.

A HomeHQSM policy from PolicySweet® includes business liability insurance, business stock insurance, and business property insurance. Liability protection can come in handy if your business experiences a third-party claim.

Of course, stock insurance can help you replace lost or damaged inventory stock. And property insurance can come into play if something happens to your business equipment.

Business Owners Policy

As a freelancer, you are your own business, even if you have no employees. For that reason, it can be important to consider a Business Owners Policy (BOP).

Instead of purchasing multiple policies separately, it comes with several coverages you might need. You'll receive general liability coverage, property coverage, and cyber risk coverage with a BOP from PolicySweet.

Whether you have a physical business location, track customer information, or have business assets, you should think about a BOP. Then, you may not have to search for individual coverages.

A BOP is similar to home-based business insurance. However, it's open to freelancers and contractors who operate a business outside of the home.

General Liability Insurance

One type of coverage that comes with a BOP is general liability. General liability insurance can help protect you against advertising injuries. It can also help when there are accusations of slander or libel.

If you work with clients in person, this coverage can cover expenses related to third-party injuries. This can be especially useful in case a client or customer slips and falls when at your business, for example.

Property Insurance

Another type of coverage that comes along with a BOP is property insurance. Almost every freelancer has some sort of equipment they use to do business.

If you're a designer or writer, it may only be a computer. Meanwhile, if you work in the food industry, it could include your baking supplies.

This coverage can also apply to office furniture you have as well as company items you keep on site. If someone breaks into your office and steals or damages these items, insurance can help.

Cyber Insurance

Cyber insurance is the last coverage comprised in a BOP. It can help protect against computer-related crimes and losses.

If your business is the victim of a cyber-attack, it could help cover expenses for investigating computer system repairs and customer notification costs.

Will You Purchase Business Insurance?

You might think you don't need business insurance. However, freelancers and independent contractors can benefit from having the right policy.

Be sure to consider the different types of coverage available. Then, think about what may apply to your business so that you can choose the right policy for you.

Are you ready to purchase business insurance? Review our coverages today.


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