As a freelance writer what insurance does a freelance writer need? Have you ever thought about this? Or you just think a freelance writer does not need a business insurance?
I certainly didn’t until recently from research, I discovered that as freelance writers we are more at risk than we think. There was this case shared by a Youtuber, according to him, in 2013, there was a British transcriber, freelancer named Leslie Kemp, who was hit with an $82, 630 lawsuit because of 1 tweet that she had sent.
What happened is that she was working with a guitar based client, and they had paid her invoice late. So she decided to go on Twitter and send a tweet complaining about it, mentioned them by name, and they ended up suing her for libel.
Though the case was eventually dropped, not necessarily because it didn’t have any merit, however according to the Youtuber, in Britain there’s this huge fee in order to initiate a lawsuit and they didn’t want to pay it. They still felt like they had a case, but it was dropped.
In the overall sense, here’s what I think: freelancers do need insurance, and as it stands I’m going to explore these insurances.
But before listing what insurance does a freelancer writer need? Here’re what you should be expecting to learn from this article:
Why Freelance Writers Need Insurance
We live in a world where things happen for reasons. There are a ton of reasons some freelance writers would kick against going for insurance but I am not here to discuss that now let’s see why freelance writers need insurance.
- Default Business Structure: By default, you are a sole proprietor if you start working alone, which means you are personally liable.
- Partnership Risks: If you start a business with another person without a formal agreement, you are a partnership by default, increasing your personal liability.
- Income Threshold: It is advisable to consider having insurance if your income reaches $5,000 to $10,000 a year.
- Risk of Legal Action: If something goes wrong with a client and they decide to sue you, insurance can provide protection.
5. Liability Protection: As a sole proprietor, if a client sues you, they can go after your personal assets.
6. Asset Protection: Insurance provides a corporate veil, protecting personal assets from business liabilities.
Types of Insurance for Freelance Writers
It’s good to be your boss, live life in your terms, and work from any part of the world and travel to multiple places as it pleases you. However while living your life in full as a freelance writer, it’s important that you make the right choice of securing yourself and career. And below are the recommended insurance can help you achieve this.
- Professional Liability Insurance
This insurance covers professionals who are dealing with sensitive freelance jobs and clients, and writing is not out of it. It covers potential claims of negligence or mistakes in your professional services. If you hold any certification that positions you as an expert, professional liability insurance can protect you from significant legal risks.
- General Liability Insurance
General liability insurance provides protection from various claims, including bodily injury, property damage, and slander or libel. For example, if you meet clients at your home office and someone slips and falls, this insurance can cover the claim. Policies typically have limits (e.g., $1,000,000), covering expenses up to that amount. This insurance is relatively inexpensive, with some policies costing as little as $19 a month, making it a crucial foundation for any freelancer including writers.
- Business Property Insurance
If you have expensive equipment, property insurance is essential. Homeowners or renters insurance might not cover business-related items, so separate business property insurance ensures your equipment is protected. Keeping personal and business insurance separate is a good practice to avoid coverage gaps.
- Cyber liability insurance
In today’s digital age, this insurance is becoming increasingly important. It provides coverage for damages or losses that may result from a data breach or other cyber-attack. For example, if a hacker gains access to your computer and steals sensitive client information, cyber liability insurance would cover any legal fees, fines, or other costs associated with the breach.
How to Choose the Right Insurance for Your Freelance Writing Business
Choosing the appropriate insurance for your freelance writing business is essential if you want to safeguard yourself from unforeseen dangers. You will learn from this article why insurance is necessary and how to select the finest policy to protect your company.
1. Understanding the Importance:
Searching for business insurance can be overwhelming. It’s essential to make the right decision to ensure you’re getting the best deal and paying the lowest cost.
2. Finding the Right Broker:
Finding the best deal starts with finding the right broker. Choose someone you are comfortable with, who has the expertise you’re looking for, and whom you trust.
An independent broker or agent who represents multiple insurance companies can find you the best deal, unlike a captive or exclusive agent who works for just one insurance company.
3. Evaluating Insurance Companies:
If you go directly to an insurance company online (e.g., Hartford, Geico, Allstate, Hiscox), you will probably get one quote. To find the best deal, you need multiple quotes to compare.
4. Understanding Value vs. Price:
Value and price are two different things. Just because an insurance policy is cheap doesn’t mean it’s the best deal. Evaluate what coverage you’re getting for the price.
5. Using Insuretech Firms:
Insuretech firms like Next, ByBurke, or Insureon offer fast, easy quotes online. However, fast and easy might not be in your best interest if you don’t understand the coverage details and exclusions.
6. Importance of Expertise:
It’s crucial to have an expert who can explain complex insurance terms and coverages to you. Protecting your business correctly is about protecting your personal net worth.
7. Developing a Trust-Based Relationship:
Your insurance broker should be one of your trusted advisors, similar to your accountant, lawyer, and banker. This relationship is essential for protecting your net worth now and in the future.
8. Engaging with Brokers:
When searching for the best business insurance, consider finding a broker who can guide you through the process. If you prefer a local broker, that’s fine too. The key is finding someone who will advocate for you and find the best options for your needs.
9. Continuous Support:
If you have questions or are in the research phase of your search, it’s helpful to have a broker who is open to connecting and chatting about your needs without pressure or sales gimmicks.
10. Contact Information:
Ensure that the broker you choose is easily reachable and provides multiple ways to contact them, including email and direct booking links.
Top Insurance Providers for Freelancers
- Insureon – Insureon according to them, they are the number one independent agency for online delivery of small business insurance, like freelancers and freelance writers. Their services allows small business owners to easily compare insurance quotes from top-rated companies, buy policies, and manage their coverage online.
- Bizcover – they provide Professional Indemnity Insurance for Freelance Writers and they act the middle person to help freelance writers buy their indemnity insurance online without hassle.
- hiscox – Protect your freelance business against legal claims, equipment breakdown and other risks with their tailored insurance policy.
Common Risks Freelance Writers Face Without Insurance
Here are the risks faced by a freelance writer who does not have insurance:
1. Financial Vulnerability to Catastrophes: Without insurance, unexpected catastrophes such as accidents or legal issues could lead to significant financial losses, potentially bankrupting the business.
2. Legal Liability and Lawsuits: Freelance writers can face lawsuits for issues like copyright infringement or defamation. Without insurance, legal defense costs and potential settlements would have to be paid out of pocket.
3. Business Interruption: If unable to work due to illness, injury, or equipment failure, a freelance writer may lose income. Insurance could cover lost earnings or expenses related to replacing damaged equipment.
4. Professional Reputation Damage: Errors or omissions in work could lead to claims from clients, damaging the freelance writer’s professional reputation. Insurance can help cover costs related to legal disputes or client dissatisfaction.
- Personal Asset Risk: Personal assets, such as savings or property, could be at risk if legal action leads to judgments against the freelance writer. Insurance helps protect personal assets from being seized to satisfy business-related liabilities.
What insurance does a freelance writer need?
To answer the above question, what insurance does a freelance writer need? I believe this has already been answered while listing the types of insurance available for writers. However, here’s the direct answer to this question; general liability insurance, property insurance, professional liability insurance and cyber liability insurance are what you need to consider to safe guard your career.
Let’s wrap up
Securing the right insurance as a freelance writer can seem daunting, but it doesn’t have to be. Just like how getting client has become easier with the right tools and strategies, so too can acquiring the right insurance for your needs.
Many insurance providers offer ready-made policies tailored for freelancers, so you don’t have to start from scratch. These policies can cover everything from professional liability to health and disability insurance.
Just like using sofware like appollo.oi to automate your client getting, you can streamline your insurance acquisition by identifying what you need and finding providers that specialize in freelance coverage. With just a little research and a few steps, you can set up comprehensive coverage that protects you and your business, allowing you to focus on your writing with peace of mind.
Still not convince about getting an insurance as a freelance writer, click here to discover 9 keys that will help you guide your decision.
