Freelancers Insurance Ontario

What You Need to Know About Freelancers Insurance

One of the benefits of being a freelancer is you have the ability to set your own hours and work on your own terms. You can pick and choose who you work with, how much you work and even how often. As most freelancers tend to work short-term jobs, they have to adapt to ever-changing responsibilities each time they begin a new project or assignment. And with each new contract comes new possibilities for industry-related risks and liability claims they may have to face. 

This is where comprehensive freelancers insurance comes in. While standard business insurance policies will cover a lot of the risks your business will face, freelance insurance is tailored to tackle your business’s unique liabilities and perils. Whether you are freelancing full-time or just doing it to make some extra money on the side, it is important that you are prepared for anything.

Insurance Coverage Options

At Insurance Hero, we understand that no two freelance businesses are alike. That’s why we have several affordable coverage options to meet the unique needs of every freelancer. Our insurance experts know how to ask the right questions to ensure you get the exact coverage your business needs. By working with us, we assure you that we will find you high-quality insurance coverage at the lowest price. From content writers and photographers to consultants and translators and everything in between, we can build you a comprehensive policy to safeguard you and your business from everyday risks and perils.

Why do freelancers need insurance?

No matter how many precautions you take, there is always the risk of finding yourself dealing with a client who is unsatisfied with your work. Should they feel that you failed to deliver your product or service as advertised, you could find yourself facing a costly lawsuit. Expensive lawsuits could put you and your business at risk of financial ruin. That is why it is important for any freelancer to protect themselves financially with insurance. Plus, if a dissatisfied client tries to slander your reputation, liability insurance can also help with damages.

What do freelancer insurance plans cover?

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, is absolutely essential for any freelancer. It is the most important coverage for you to have. It protects your business against claims of misconduct, negligence, failure to deliver a service or inadequate work. Professional liability covers:

• Errors, mistakes and oversights
• Failure to meet deadlines
• Failure to deliver your product/service as advertised
• Professional negligence or malpractice
• Failure to meet a standard of care
• Breach of contract

Commercial Property Insurance

Should you work out of a brick and mortar office, commercial property insurance protects your office and the contents inside (e.g., equipment, inventory, etc.) by covering the financial loss from such perils as:

• Property damage due to natural disasters, flood, fire, vandalism or theft.
• Property damage or theft of electronics, equipment, company documents or employees’ personal belongings.
• Inventory theft by employees.

Freelancers insurance can also include business interruption, which protects your business should you be unable to work due to an illness or injury and have to shut it down temporarily. This helps offset ongoing costs from income losses, such as bills, employee wages, etc.

Commercial General Liability Insurance

Commercial general liability protects you and your business from legal liability against third-party bodily injury or property damage claims that occurred while a client was at your office. It covers the costs of medical bills, legal fees, and repairs or replacements. This insurance policy also protects you against any advertising and reputational injuries (e.g., slander, libel, copyright infringement).

Cyber Liability Insurance

Cyber and privacy liability insurance protects your business by covering damages and legal claims if your customer’s personal information is leaked or stolen due to a data breach or theft. As storing business information online has become standard practice, this has become an essential insurance policy for any business with customers to have. 

Product Liability Insurance

Product liability insurance protects you against claims of bodily injury or property damage due to a product you manufacture, distribute or sell. If a customer is injured by a product you sell, you could face a costly lawsuit. Having product liability insurance will help cover your legal fees, settlement fees or payouts.

What other coverages should you consider adding to your insurance policy?

Equipment Breakdown Insurance

Some freelancers, like ceramicists, carpenters, caterers and designers, have tools and equipment that are vital to their businesses. Equipment breakdown insurance covers financial costs for equipment that need repairs or to be replaced due to internal damage. While you have some coverage for external event damage under commercial property insurance, this policy covers internal damages, such as power surges, motor burnout, electrical shorts, operator errors and mechanical breakdowns. 

Business Insurance – Home-Based

If you run your freelance business out of your home instead of at a separate office, you must let your insurance provider know immediately. Standard home insurance will not cover any business-related accidents or losses, even if they occur in the home. 

Auto Insurance – Business Use

Some freelancers may also travel to their client’s homes, sometimes to perform their work there or to deliver a product. These freelancers will need to let their insurance provider know they will be using their vehicles for business purposes, as your insurer may deny a claim if you are using your vehicle for work without informing them. You can likely add this to your personal auto insurance policy.