How to Insure and Protect Your Freelancing Business

Operating your own freelancing business can be a very challenging, yet rewarding career choice. There are numerous things that need to be considered while getting your freelancing business up and running. As with any business, one of the main things to consider is insurance. Insuring your freelancing business will protect you, your business, and your assets from any legal issues that may arise. You should also think about health insurance if you are self-employed. It is very important to have, especially if a serious medical situation happens to come about. Before making any insurance decisions, you should become familiar with the many different small business insurance options that are available. This will help you determine what types of insurance will properly protect you and your freelancing business.

Liability Insurance

One of the most important types of insurance for any business is professional liability insurance. It protects you should any insurance claims be brought against you or your business. In the world of freelancing, professional liability insurance can be the most important type of insurance to have. It will cover you and your business should there ever be an issue of errors, omissions, negligence, or malpractice.

Although you may think liability insurance may not be necessary if you are running a freelancing business, think again. There is always the possibility that a client will be dissatisfied with the work you have done for them. You do not want to risk your business or personal assets should that client bring a suit against you, for whatever reason. You should take the time to talk to a licensed insurance agent before making any liability insurance decisions. They will be able to tell you exactly which type of insurance is right for you and your situation, along with the amount of insurance your freelancing business needs.

Umbrella Insurance

Money Making Ideas: Freelance InsuranceOne type of insurance that is often overlooked is umbrella insurance. Some business owners and self-employed people do not realize how important umbrella insurance can be. It is basically a type of insurance that goes above and beyond the other insurance policies your business may be covered with. Say a lawsuit is filed against your freelancing business. Will your current insurance policies be able to cover the amount of all potential legal expenses? Most business owners would answer this question with a no. This is because anything is possible in the world of business, with freelancing being no exception. The bottom line is you never know what may happen should a client or customer become upset with your services. It is a good idea to be protected from all potential issues.

The great thing about umbrella insurance is that it really isn’t that expensive to carry. Although it is certainly another expense, the level of protection you receive is worth every penny. Your umbrella insurance policy will kick in after the limits of your other insurance policies are exhausted. If it happens to be a big legal issue at hand, you will be mighty glad you took the time to purchase that umbrella insurance policy, as you and your assets will be fully protected.

Health Insurance

Many self-employed people do not realize the importance of health insurance. They think that just because they do not get sick often, health insurance is not needed. The reality is that even if you are a healthy individual, medical issues can creep up at any time, completely unannounced. Will you be able to cover your medical expenses should a situation come up and you have to stay in the hospital? Your answer is probably no. You will risk losing all of your personal and business assets because they will be used to cover your medical expenses. You will also risk your freelancing business, because you will not be able to work if you are sick. This is why it is very important to look into health insurance if you are running your own business.

If you do decide to look into health insurance for yourself, you should always check around with multiple companies before purchasing a policy. This is also true for any other type of insurance you may be shopping for. You may think that all policies and companies will be about the same, but that is not always true. Insurance quotes can vary greatly from company to company. When and if you choose a health insurance company, just be sure you are getting the proper coverage for your money. With the added protection you receive with health insurance, you will definitely be glad you took the time to purchase it for yourself.

Although purchasing insurance can be a very confusing, and often frustrating issue to deal with, it is much easier when you have helpful insurance information provided to you. Making an informed decision will ensure you are getting the types of insurance and coverage that is best for you and your freelancing business. Then, instead of worrying about insurance, you will be able to focus all of your attention on your work, which is certainly a positive thing.

About the Author: This is a guest post by Bailey Harris. Bailey enjoys writing about business, small business insurance, finance, and related topics.
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