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5 Reasons Freelancers Need General Liability Insurance

Freelancers offer their services to clients as self-employed, independent contractors. If you are one, you understand the importance of protecting yourself. While there are freedoms such as setting your schedule, freelancing can also leave you vulnerable. You will need to prepare yourself for a loss of work and maintain financial records.

Benefits of General Liability Insurance

Having your own business and working independently comes with great rewards and risks. In this blog, we will discuss the five main reasons why freelancers need general liability insurance. We will also discuss additional insurance coverage that is available and beneficial to freelancers. Continue reading to discover why freelancers need to get protected through insurance and help their business thrive.

1. Gain Peace of Mind

Whether you are a personal trainer, handyman, or freelance writer, your priority should be to do the job you were tasked with. You shouldn't worry about worst-case scenarios or what could happen if something goes wrong. 

With the proper business insurance, you can put your mind at ease and focus more on your work. Generally speaking, insurance for your freelancing business gives you greater freedom and peace of mind to work while actually enjoying what you do.

2. Protect Your Business Against Claims

General liability insurance protects your business against claims for which you are responsible. As a freelancer, you are responsible for the job that you do. If something goes wrong, you are accountable. There is no employer or corporation to fall back on or rely on. Claims covered under general liability insurance include lawsuits, medical expenses, and property damages.

For example, if you are doing a job in someone else's home and they trip and fall on a tool left behind by you, they could sue you for their injuries. Another example is if you accidentally break something in a client's home while working. It could result in a claim against you to pay for the damages.

3. Protect Your Assets and Investments

Property insurance ensures that the valuable equipment you use for your business is protected. For example, if you are a photographer, you may have thousands of dollars' worth of cameras, laptops, and setting props. These are essential components of your freelancing business. You want to ensure they are protected and insured.

Your equipment is your livelihood, as it makes your job possible and is essentially an asset for your business.

4. Help Your Business Thrive

Some clients will only work with freelancers who have insurance and adequate coverage. For some clients, this is an advantage in working with you. Most people want to feel safe should a problem arise.

Remember, clients are also looking out for their interests. Insuring your freelance business will boost your credibility and make you look good in the eyes of potential clients, thereby growing your business over time.

5. Become Self-Sufficient

Another reason freelancers need insurance is that they need to look after themselves should they run out of work or find themselves unable to work. Since they are not traditionally employed, freelancers are on their own to secure disability coverage or benefits covered under an employee healthcare plan. 

Insurance can help freelancers feel fully self-sufficient as they begin operating more like a business, with available coverage to depend on should they need it.

The Right Coverage for You

In addition to general liability insurance for freelancers, there is professional liability insurance, which is best for those who work closely with clients, provide professional advice, or offer services. This type of insurance protects you in case of a claim against your services or advice.

For instance, if a client is dissatisfied with the quality of your work, professional liability insurance can come to your aid. Another insurance type you may consider as a freelancer is commercial auto insurance. 

This insurance is particularly relevant if you are a delivery driver or frequently drive from place to place for your business. If driving is essential to your business, commercial auto insurance is necessary to protect you against accident claims and car damages.

In conclusion, insurance is crucial for any business, and freelancing is no exception. Experienced business owners understand the importance of proper insurance as accidents and mistakes can occur at any time.

With general liability insurance, freelancers can protect themselves against claims and loss of work, safeguard their assets and investments, boost their credibility, and become self-sufficient. By having the right coverage in place, freelancers can focus on doing their job to the best of their ability, with peace of mind and a sense of security.

For more information on general liability insurance in Toronto and the GTA, reach out to Marathon Insurance at 844-429-0837 or contact us through our website

We would be happy to guide you through our insurance plans and help you make an informed decision about your coverage. Get in touch with us today for more information on how we can support your business.

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