Business insurance for freelancers defined 

At biBerk, we use terms like insurance for freelancers and freelance liability insurance to refer not to a specific policy but to several types of coverage a freelancer might need. We offer various policies designed to address different needs. 

For example, professional liability insurance is for if someone sues you over professional advice or services you provided that they claim caused them financial harm, and cyber insurance can cover specified costs stemming from someone stealing sensitive data from you and using it to commit fraud. 

One of the advantages of this a la carte approach is that you can purchase only the policies you need and not pay for unnecessary coverage. That’s important for freelancers who may have fairly tight budgets. 

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7 freelance insurance policies you should consider 

What freelance insurance policies do you need to protect your business? That depends on several things, including the type of work you do, the business risks you face, any legal requirements for coverage that apply to businesses like yours, and other factors. However, it’s safe to say that every business can benefit from one or more of the essential business policies we offer:

General liability insurance
Also known as commercial liability insurance, general liability insurance covers things like damages and legal costs associated with injuries or property damage that your business causes. For example, if you’re working at a client’s home and knock their computer monitor off their desk, your policy can cover the repair or replacement cost. General liability insurance also covers libel, slander, and copyright infringement.

Plus, there are endorsements you can add to customize your general liability insurance, including cyber, hired and non-owned auto liability, and others related to employees. As a freelancer, you might not need those add-ons now, but it’s nice to know they’re available if your business changes or expands.

Professional liability insurance
This type of coverage is also called errors and omissions (or E&O) insurance. It can protect your business from damages and legal fees if someone says your professional service caused financial harm to them or their business. Coverage includes both mistakes by your business (errors) and the failure to perform a service (omissions). An example of a professional liability claim might be that in your work as a freelance interior decorator, you advise a client to purchase the wrong type of paint for a project and they incur costs for returning it and rescheduling the painters they’ve hired.

Workers' compensation insurance
Workers’ compensation insurance provides protection from the potentially high cost of on-the-job injuries or illnesses. It can cover medical expenses, legal fees, and lost wages due to the injury. States require nearly every business with employees to have workers’ comp coverage, but even if you don’t have any, the policy can benefit you. Imagine you trip and fall at a client’s office, striking your head on the desk and suffering a cut that requires stitches. Workers’ comp can cover the cost of your care.

Business owners policy (BOP) 
Also called property & liability insurance, a business owners policy (BOP) combines general liability with coverage for business property. You get protection from the costs of lawsuits and coverage for your business property, including owned or leased space needed to run your business. So, if a storm damages equipment you keep in a rented storage unit, your policy can help pay to repair or replace the items.

You also get what’s called business interruption coverage. If you have a covered property loss, this coverage can replace lost income and cover other costs associated with getting your business back up, like renting a temporary location. Here again, there are several potential add-ons.

Umbrella insurance
Every insurance policy has a maximum value it will cover in the event of an incident. Umbrella insurance adds another layer of protection, covering costs that exceed the limit of the underlying biBerk liability policy—subject to the umbrella policy’s limit, of course. Without this additional coverage, you’ll likely be responsible for anything over your policy limit. Imagine that you have a general liability policy with a $250,000 limit and have to file a claim for $275,000. Your umbrella policy can cover the $25,000 overage.

Commercial auto insurance
If you own or lease a vehicle for work purposes, this policy protects your business. It can provide coverage for your legal fees and the medical costs of others if you are at fault in an accident. It can cover the cost of damages even if the vehicle is used for personal activities outside of its primary business use. A commercial auto policy could pay associated costs if you accidentally run a stop sign, and another driver injured in the collision sues your business. 

Cyber insurance
You can buy this coverage as an add-on to a BOP, general liability, or professional liability policy. It’s especially important if you handle personal data, as it helps pay costs related to system hacks or data security breaches where a hacker steals sensitive information and uses it to commit fraud or is likely to.

Business insurance for freelancers: Getting quotes and buying policies 

As a freelancer, you probably spend the bulk of your workday completing gigs or looking for new ones. In that case, you’ll be glad to know you can get quotes for freelancer insurance on our website whenever it’s convenient. You just provide a little information about your business, and our system generates a quote. It only takes a few minutes to learn what you’ll pay for coverage that can protect your business from a financial crisis.

If our quote (which may be up to 20% less than other providers thanks to our direct-to-you approach) works for your budget, you can also buy policies right from our website. Coverage is typically active the next day, which tends to be a great relief to business owners concerned about financial protection. You can also report claims from our website and obtain a Certificate of Insurance for each of your policies.

These features highlight our emphasis on making business insurance easy for freelancers and other small business owners. We’ve streamlined buying and maintaining coverage so you can stay focused on your business. You can also face your business risks with confidence, knowing you’ve got the financial protection of biBerk (part of the Berkshire Hathaway Insurance Group) behind you.

Be prepared for the unexpected with freelancer business insurance

Costly incidents can strike anytime, but they don’t have to derail your business. Get quotes for the policies you need and get covered today!

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