Insurance for Freelancers

The freelance economy has grown big. According to Exploding Topics, over 73 million freelancers in the U.S. churn out $1.3 trillion in annual earnings.

These self-employed professionals and independent contractors offer their services online. Hence, they do not enjoy the same financial protections or job security benefits provided to traditional employees by employers.

That leaves them solely responsible for their financial security and business risk management. That’s where freelancer insurance can help. 

What Is Freelance Insurance?

Freelancer insurance refers to different insurance policies that online or remote workers require to protect their businesses and finances.

It has become a critical component of a freelancing business to help manage various risks and avoid financial ruin.

What Insurance Do I Need As A Freelancer?

Various freelance insurance coverages work together to help protect your business and finances as a self-employed professional. Below are the most common freelance insurance policies that you may need.

Freelancer health insurance

Traditional employees have access to employer-sponsored health plans, which you don’t enjoy as a freelancer.

Thus, Freelance health insurance is one of the top insurance policies you should have. 

But how do freelancers get health insurance?

You can individually search for the best self-employed health plans or engage an independent insurance agent to help you. 

Alternatively, shop for affordable freelancer medical insurance through the Affordable Care Act (ACA) marketplace.

Professional indemnity cover

If you’re a freelancer offering professional services online, you should place a lot of premium on getting professional liability insurance.

Also known as Errors and Omissions insurance, professional indemnity insurance protects you against claims of negligence or mistakes in your work.

If you get sued for causing financial harm to your client, your professional indemnity insurance will cover legal fees and settlements.

Disability insurance

Think of a situation where you may be unable to complete your freelance gigs due to an injury or disability. Your income will dry out, right?

With disability insurance, you can whether such a situation without a hitch on your finances.

The policy helps replace your income if you are unable to work due to illness or injury so that you can still cover your living expenses.

Depending on your situation, you can go for short-term or long-term disability insurance.

Cyber liability insurance

Typically, freelancers operate online, making their business operations open to cyberattacks. For instance, sensitive client data may be compromised by cybercriminals.

Cyber liability insurance covers costs associated with data breaches, like legal expenses, data recovery costs, regulatory fines and penalties, etc

Life insurance

Most remote workers do freelance work full-time. That means freelancing is their only source of income to support their families. And, an eventuality like death can leave their loved ones financially devastated.

A life insurance policy can help you avoid such financial ruin. The policy offers financial protection to your family if you die unexpectedly.

A death benefit is paid to a named beneficiary (s). That enables them to continue affording the same lifestyle as before if you pass on.

How To Get Affordable Freelancer Insurance

There are a few things you can do to get the best freelancer insurance at the most affordable rates, including:

Assess your insurance needs: First, assess your freelance business risks and determine the type of insurance coverage you need. 
Compare rates: Shop around and get freelancer insurance quotes from at least 3 insurance carriers to compare rates.
Read policy terms: Make sure you read policy terms, conditions, and exclusions for each coverage from each carrier.

Talk to a professional

Though you can do all the above on your own, consulting a professional insurance agent is better. 

An independent insurance agent can help you easily and quickly assess your freelance insurance needs. 

They then compare rates from their network of top carriers to get you the best freelance insurance rates in town.