Does Your Freelance Business Need Insurance?

How do you know if your business needs the protection insurance provides? It depends on where and how you’re doing business. If you are self-employed, here’s what you should know about insurance.  

Liability Insurance

Many people who are freelancers need professional liability insurance. This type of insurance doesn’t just cover your personal injuries or property damage, though that protection is important. Professional liability insurance can potentially cover you for trademark or copyright infringement, libel, slander, lawsuits and legal bills. 

Homeowners Endorsement

You’ll want to check how much coverage you have for equipment, such as computers, under your homeowners insurance policy. If you don’t have enough protection, you may be able to add this coverage onto your homeowners insurance as an endorsement. 

In-Home Business Policy

You may need this coverage if your homeowners insurance policy doesn’t give you the protection you need, even with an endorsement. Along with equipment, an in-home business policy may cover important papers and records. It may also cover the cost of doing business from another place if your home workplace is damaged or destroyed.

Business Owners Policy 

This covers the same types of losses as an in-home business policy, but it’s designed for larger businesses. You might need this coverage if your freelance business operates in more than one location. 

Cybersecurity Insurance

If your work is at risk of a data breach, it’s a good idea to have cybersecurity insurance. This type of freelance business insurance, sometimes also referred to as data breach insurance, is especially important if you work with sensitive customer data like health information or financial records. 

Workers’ Compensation Insurance

State laws vary, but if you employ anyone other than yourself you probably need to have workers’ compensation insurance to cover medical expenses, rehab and lost income if they are hurt at work. 

Auto Insurance

If you use your car for business, you need to make sure your auto insurance policy covers you. This coverage isn’t just important if you’re a gig economy worker, driving for Uber or delivering groceries for Instacart. You need coverage if you’re driving to visit clients or delivering products to a place where you sell them, for example. 

Health, Dental, Vision, Life and Disability Insurance

Many employers offer some or all of these types of insurance as part of their benefits package. When you work for yourself, you’ll have to decide which types of these policies you’ll need, and what level of coverage meets your needs. 

• You don’t want to go without health insurance coverage, since an accident or illness could bankrupt you. 
• You may prefer to pay for dental and vision expenses out of pocket, or you may want to have insurance coverage.
• Your need for life insurance and disability insurance, and the amount of coverage, will vary based on your personal circumstances.

Get Advice About Insuring Your Business From a Professional

When you’re a freelancer, you want to focus on your business, not on researching your insurance needs. Reach out to Farm Bureau for help. We can review your current policies and coverage and create a home-based business insurance package that’s right for you.