Freelance insurance

Professional indemnity insurance

In case you’ve made a mistake in your work or your service hasn’t met the expected standards.

What’s typically covered by freelance professional indemnity insurance?

Claims against your business for professional negligence causing your client a financial loss, which may include:

• advice you’ve given which turns out to be incorrect
• errors in your freelancing work which cost your client money

For example:

• you agree a hard deadline with your client, but aren’t able to deliver. The unexpected delay causes them to lose money
• the client has implemented your advice, but they’ve seen negative performance – and lost income – as a result

Read more about professional indemnity insurance

Public liability insurance

In case someone is injured or property gets damaged because of your freelancing business.

What’s typically covered by public liability insurance for freelancers?

Claims against your business for:

• injury or damage to someone’s property, caused by you or as a result of your work
• accidental damage or injury caused by your employee, if you have one

If you do employ anyone, you’re usually required by law to have employers’ liability insurance too.

For example:

• you accidentally spill coffee over a client’s laptop, causing damage
• while on site at a client’s office you leave your equipment on the floor, causing someone to trip and break their ankle

Read more about public liability insurance

Employers’ liability insurance

In case something happens to an employee while they’re working for you.

What’s typically covered by employers’ liability insurance?

Claims against your business for:

• an employee suing you because they’re injured or fall ill as a result of working for you (includes temp staff and casual workers)

**Employers’ liability insurance is required by law if you have people working for you. Without it, you could be fined up to £2,500 a day for each employee.**

For example:

• one of your desk-based employees develops back pain after sitting on a chair you’ve provided, which isn’t set up properly
• while presenting at a client’s office your employee drops some heavy equipment on their foot, breaking a toe

Tools insurance

In case something happens to your tools.

What’s typically covered by tools insurance?

• theft of the equipment you use to run your freelance business (operational equipment, not tools of the trade)
• accidental loss of your operational equipment
• flood, fire or accidental damage

For example:

• there’s a fire at your flat and your make-up brushes are destroyed
• your audio equipment suddenly stops working and needs replacing

Read more about tools insurance

Business and office equipment insurance

In case something happens to equipment like your laptop.

What’s typically covered by business and office equipment insurance?

• theft of the equipment you use to run your freelance business (operational equipment, not tools of the trade)
• accidental loss of your operational equipment
• flood, fire or accidental damage

For example:

• you’re late for a meeting, and accidentally leave your laptop bag on the train
• all of your computer equipment is stolen during an office break-in
• your drink bottle leaks in your bag and spills over your laptop

Read more about business and office equipment insurance

Legal expenses insurance

In case you’re faced with legal costs while running your freelance business.

What’s typically covered by legal expenses insurance?

• legal costs associated with day-to-day operations, like an employee dispute
• legal costs you incur as a result of property damage, nuisance or trespass
• HMRC tax and compliance issues, if they come up
• includes a tax advice helpline, a 24/7 confidential legal helpline and crisis PR support to help you protect your reputation as a freelancer

For example:

• the client makes a dispute of contract claim against you when the project goes over budget and misses deadlines
• you dismiss an employee and need to defend your legal rights

Read more about legal expenses insurance

Personal accident insurance

In case you or anyone you’ve covered has an accident, at work or off duty.

What’s typically covered by personal accident insurance?

• injury or death of anyone you’ve chosen to cover in your policy – whether this happens at work or elsewhere
• lost income, hospital bills or other medical costs associated with the accident

For example:

• you’re out running on your lunch break and twist your ankle, meaning you’ll be off work for a few days
• you were in a car accident over the weekend and have bad whiplash, forcing you to take two weeks off work

Read more about personal accident insurance

Can I just cover my most expensive tools?

Make sure you cover the total cost of replacing all your tools or you’ll only get a proportion of your claim paid out if something happens to them. Learn about tool cover.

Which type of workers do I need insurance for?

Employers’ liability insurance is a legal requirement if you employ people.

If you have people working for you, including bona fide subcontractors (BFSC), labour-only subcontractors (LOSC), part-timers, or full-time staff, employers’ liability insurance is required by law.

Read on for our simplified guide to the difference between labour-only subcontractors and bona fide subcontractors.

Will tools insurance cover all my equipment?

Depending on what you use to do your work, you may need other covers.

You may need more than tools insurance – for example, business equipment insurance if you have a work laptop, plant insurance if you use machinery.

Does freelancer insurance cover my work correctly?

Make sure you’re picking the right cover to protect you properly. It’s important to know that if you have another trade or job, you’ll need additional cover.

Do I need cover for other types of work?

If you provide other services, make sure you’re covered:

• Web designer insurance
• Photography insurance
• Videographer insurance
• Interpreter insurance
• Language professionals
• Journalist insurance

Other types of insurance

• Limited company insurance
• Self-employed insurance
• Freelance insurance
• Consultant insurance
• Sole trader insurance

Which public liability cover limit should I choose?

Think about the maximum possible loss your business could face in the event of a claim, and make sure you take legal fees and damages into consideration. You can choose from three levels of coverage – £1 million, £2 million, or up to £5 million.