Unlike employees, freelancers take full responsibility for their work … and for their possible mistakes! right here a Professional Insurance for Freelancers is particularly useful. This covers you in various situations as well as being a way of reassuring your customers (often not very pleasant, let’s face it).
Here is everything you need to know about the protection offered by professional insurance for freelancers in just a few steps!
What is Professional Insurance for Freelancers?
L’professional liability insurance Acts as a lifeline in case of unforeseen events, errors, incidents or accidents. Whether you’re a computer consultant, doctor, web editor or builder, such coverage is a must.
This includes damages and financial losses related to:
- towards you material or of the customer;
- to one serious data loss ,
- Feather Disease one of your products or services;
- One physical accident,
In contrast, professional insurance for freelancers does not cover:
- breach, curtailment or cancellation of the contract;
- Deceptive advertising or unfair competition results;
- Voluntary and foreseeable delay in the delivery of a service.
Is Freelance Professional Insurance Mandatory?
The answer is simple: no. it’s not Not compulsory to take out professional liability insurance, but that’s highly recommended,
You know the famous saying “It just doesn’t happen to others”? This is valid for your independent activity. Even if you think you are doing a risk-free activity, zero risk never exists, In the next part of this article, we will also see examples where such protection proves to be a life saver.
When you have a business there are many compulsory insurances, such as those relating to your assets (for your car, your premises or your equipment). Some upscale businesses absolutely must carry professional liability insurance.
This is the case for professions in the medical world, for example. There are specialized security bodies for these specialized activities, who know the risks of medical work. Generally, these insurers also provide legal aid.
If you work from home, Pay attention to the terms of your home insurance, It may not include your freelance activity. If your home or apartment is damaged as a result of a professional mission, the insurer may refuse to indemnify you. Remember to enquire. Some home insurance offers an additional option for covering your home office.
When is professional indemnity insurance useful?
It is impossible to list all the scenarios where professional insurance for freelancers can save your day! However, here are some concrete examples where this protection is welcome:
as part of a consulting mission
An independent consultant, irrespective of his field, is called upon to provide advice and a roadmap to his client.
If the latter implements the consultant’s strategy and it does not work as expected, he can claim against the freelancer that his part of the contract has not been fulfilled, or worse, that he has violated his activity. has harmed.
as part of a mission “on the ground”
In the construction world a freelancer may need to hire labor to help him on a construction site. Let’s imagine that one of the employees is injured… It is professional insurance that will cover the medical costs and any ITT.
Similarly, if, during the construction site, the freelancer or any of his service providers cause damage, it is this cover that will allow the client to be compensated.
In case of accident caused by freelancer
You are a freelance photographer or videographer. During one event, a guest tripped over the cables of your electronic equipment and hurt themselves. You will be liable, but it will depend on your professional insurance cover medical expenses,
We can also take the example of a client who gets injured during a training session given by a sports coach or yoga teacher. Once again, it is your security that will take care of it compensation, medical and/or legal costs,
Professional civil liability will protect you from accidents.
In case of inadvertent error by the freelancer
No one is perfect and we all make mistakes. Experienced freelancers too! This is human.
We can give an example of a webmaster who forgot to fix all Website Security Vulnerabilities before giving it to the customer. If the latter becomes a victim of a cyber attack, it can hold the freelancer responsible.
Why Get Freelance Professional Insurance?
Professional coverage in addition to protection Insures you in case of dispute, damage or injurySubscribing to such a contract is useful for:
reassure customers
Some companies now require you to have professional insurance appropriately before signing with you, It is a way of protecting yourself in case you make a mistake or a loss.
seek legal advice
Some insurers offer legal aid or protection, Thus you can get your service contracts proofread or approved by legal experts before signing.
ease your loans
If you need to invest in equipment or premises for your business, your bank may ask you to proof of professional insurance,
avoid chargeback
Thanks to the legal protections included in some contracts, you benefit from valuable advice and resources collect your payments,
prevent cyber threats
Regardless of your activity, you necessarily work with IT equipment, which exposes you to malicious attacks, You may lose data or may have to hire a professional to recover all your resources. Professional coverage can protect you against losses related to such attacks.
How to choose your professional insurance as a freelancer?
Do you want to get pro insurance for freelancers, but you don’t know how to choose? It is true that the offer is quite large and each organization has several levels of guarantees.
To help you choose the one that best suits your activity and your needs, here are 5 criteria to keep in mind:
1. Your Specific Risks
is one of the first things to do specific risks inherent in your activity, Do you have to cover material, human, cyber, administrative, legal risks…
of course, it will depend on you Work And places you practice, If you essentially live at home and do not employ service providers/employees, you will have less exposure to cover than a freelancer who frequently travels to clients and uses large equipment.
2. Quantity and type of customers
Something else to consider: Profile and number of your customers, The more customers you have, the more risk you take.
Also, if you work with large corporations, construction companies, or organizations that operate in sensitive fields (such as medical or security), you will need more protection.
Indeed, these types of clients often have strict contractual obligations. Needless to mention that they can provide expensive equipment and resources for you. In the event of a problem or complaint, the cost may be higher for your smaller structure. Better to be well protected.
3. Level of Coverage
After a precise analysis of your needs, make sure the chosen freelance professional offers insurance different levels of coverage, The aim is to find the formula with the best safety/price ratio.
If you work in your living room, with only your PC, there is no need to subscribe to offers with higher content guarantees. And vice versa! If you regularly travel to construction sites like to promote safety.
4. Exclusions
As with any contract, you need to read the fine lines… What are exclusion criteria , It would be a shame to learn that risks specific to your mission and your activity are not covered by your professional insurance…
So remember to find out about the situations where you will not be reimbursed, along with the conditions that need to be met in order to receive compensation.
5. Experience of the insurer
Another element to take into account when choosing your professional indemnity insurance is the experience of the insurer. Ask yourself these questions:
- How long has it been on the market?
- Does it cover other freelancers or businesses in your industry?
- What is its reputation for compensation?
- Is it typical in particular occupations and in your profession in particular?
The more experienced and specialized the insurer, the better they will be able to help you choose a formula best suited to your needs.
How much does Freelance Professional Insurance cost?
The price of your professional coverage will obviously depend on the level of protection desired, but also on the risks associated with your activity. Some insurers also take into account the size of the company and the declared turnover in calculating your premium.
When you have very low-risk activity, little travel and customers with a non-sensitive profile, count on around €20 per month. But if you need extra security, the formulas can go up to 50€/month,
feel free to make quote online and using comparators to choose the formula with the best quality/price ratio.
conclusion
As you can see, professional insurance rates for freelancers are very beneficial. The advantage of the price ratio is largely in your favor. So it would be a shame to miss out on good protection for economic reasons!