Top 5 freelancing insurance options for every freelancer

As the gig economy booms, more and more folks are opting for the freedom of freelance work. A survey conducted by Upwork revealed that since 2014, freelance workforce growth had jumped a whopping three times faster than the U.S. workforce as a whole. This surge in freelance popularity is hardly a surprise – it's an attractive proposition, offering flexibility, independence, and a chance to work on different projects without a boss's watchful eye.

Of course, some challenges come with running your own business - finances, taxes, marketing, etc. But let's not forget about insurance - something freelancers often overlook in their business endeavors! In this Workee article, we'll dive into why freelancing insurance is vital and the various types that are available to you.

What is freelancing insurance?

Freelance insurance refers to the various types of insurance coverage specifically designed to protect individuals who work as freelancers rather than being employed by a company. As a freelancer, you manage all aspects of your business, including financial risks and liabilities. As a result, it is not out of place to sometimes run into troubled waters while carrying out business. During such a period, freelance insurance can protect against circumstances impacting your business or personal finances.

Freelance insurance can be tailored to meet your specific needs and the needs of your business brand. However, if you must enjoy the benefits of insurance as a freelancer, It is important to contact an insurance professional to determine the types and amounts of coverage best suited for you.

Why freelancers need insurance

The world of freelancing is becoming increasingly popular, with many individuals choosing to leave traditional employment behind and work for themselves. However, the freelancing space isn't without its challenges. Below, we will look at some reasons freelancers need insurance.

1. Income protection

The most important reason why freelancers probably need insurance is to protect their income. As a freelancer, remember that you don't have the same level of job security as traditional employees. As such, you need a safety net to protect your income if you cannot work due to an illness, injury, or other unforeseen circumstance.

A perfect type of insurance that comes to mind here is disability insurance. This type of insurance can help protect your income if you become unable to work. This type of insurance gives you a percentage of your income if you become disabled and cannot work. It can help you pay bills and other expenses while you recover and get back on your feet.

2. Protection against liability

As a freelancer, you are responsible for your work and bear the responsibility for any mistakes that come with the job. If a client is unsatisfied with your job, they may sue you for damages for losses they incur while doing business with you. This is where liability insurance comes in to help you cushion the effects of such damages. This type of insurance can help protect you from financial losses if a client sues you for a mistake you made or for any other reason. It can also help cover the cost of legal fees and any damages that may be awarded from such losses.

3. Protection of health

Another major reason why freelancers need insurance is to protect their health. As a freelancer, you don't have access to enjoy from the same health insurance packages as traditional employees. This means that you need to find your health insurance policy to protect yourself in case of illness or injury while performing your job.

But not to worry, several health insurance packages are available for freelancers, including individual, short-term, and group health insurance plans through professional associations or organizations. Tapping into any of this will ensure you get covered during the rainy days.

4. Peace of mind

Finally, freelancers need insurance for the peace of mind that it provides. Knowing that you are protected in case of illness, injury, or a lawsuit can help you focus on your work and feel more secure in your career. It can also help you feel more confident in negotiating contracts and setting rates, knowing you are protected if something goes wrong.

Types of freelance insurance available

While trying to work for yourself and achieve the freedom to pursue your own goals and interests as a freelancer, you need the right insurance policies to ensure you are properly insulated from the risks and challenges incidental to the freelancing business. This section of our article will explore the types of insurance available to freelancers and how they can help protect you and your business brand.

1. General Liability Insurance

The top on our radar is general liability insurance. This type of insurance covers third-party claims of bodily injury or property damage. As a freelancer, this type of insurance can not be overlooked as it keeps you insulated from claims that may arise due to your work. For context, check out this example below. Let's assume you are a graphic designer, and a client claims that your design work caused them to lose a business deal. Rather than running helter-skelter, general liability insurance could cover any damages or legal fees resulting from that loss your client suffered.

2. Professional Liability Insurance

Professional liability insurance is one of the freelancers' favorite types of insurance policies. It is popularly known as errors and omissions insurance and provides coverage for negligence claims or errors in your work. This type of insurance is particularly important for freelancers who provide professional services, such as accountants, lawyers, and consultants. Professional liability insurance can protect you from claims arising from a mistake or oversight in your work.

3. Business Owner's Policy

A business owner's policy (BOP) is a type of insurance that combines several types of insurance coverage in one package. A BOP typically includes general liability, property, and business interruption insurance. For freelancers who work from a home office, a BOP can be an ideal way to get comprehensive coverage for a wide range of risks.

4. Health Insurance

Health insurance is important for freelancers who do not have access to group health insurance plans through an employer. Individual health insurance plans can be purchased through private insurance companies or healthcare exchanges established by the Affordable Care Act (ACA). In addition to individual health insurance plans, freelancers may also be able to purchase short-term health insurance plans or group health insurance plans through professional associations or organizations.

5. Disability insurance

Disability insurance provides coverage if you become disabled and are unable to work. As a freelancer, your income is directly tied to your ability to work, which makes disability insurance a crucial part of your insurance portfolio. Disability insurance can help provide financial support if you become disabled and cannot work for an extended period.

Why you need Workee as a freelancer 

Workee was built with freelancers in mind. The Workee software is one business management software all independent professionals will find essential to managing their freelancing work properly.

Are you wondering how Workee makes business management seamless? Here are some specific ways Workee takes the stress off freelancing. Workee provides:

• You can set up a free, professional website in minutes. Clients can find you when they run a quick Google search. You can customize your experience with templates and layouts that you love.  

• Smart booking and scheduling features, considering that freelancers often manage appointments with clients across multiple time zones. Workee also provides reminders, so you never miss any meetings or activities.

• Payments and automated invoicing for services, account logs of received payments, automatic tax calculation, and multi-currency support — all without commission fees.

• Integrated workspace for holding meetings, managing contacts, and receiving payments, all in one place.

• Video calls from any device allowing you to make notes during call sessions conveniently.

• Clients' management tool to easily manage your interactions with clients. Here you can keep all respective client information in one place, manage sessions, take notes, and receive payments.

There are many more ways Workee helps freelancers enjoy their jobs. The best part is that using Workee is free, with the option to upgrade anytime. All you need to do is sign up and get started.

Conclusion

Various insurance options are available to freelancers to protect themselves and their businesses. General and professional liability insurance can protect you from claims related to your work, while a BOP can provide comprehensive coverage for a wide range of risks. Health and disability insurance are also important to protect your physical and financial well-being. By understanding the types of insurance available to freelancers, you can make informed decisions to protect yourself and your business.