Do freelancers need professional indemnity insurance?
It really depends on what trade or profession you are in. If you offer professional advice or consultancy as part of your freelancer activity, or in any other way provide knowledge, you should consider professional indemnity insurance. You might be a freelance architect, it could be you install CCTV systems – if you offer advice, there’s always the risk that the client blames you when something goes subsequently wrong.
Professional indemnity insurance is a type of cover designed to protect you from the costs of defending a claim when you have provided advice or consultancy that is claimed to have been deficient or wrong.
Other freelance liability insurance covers to consider when taking out a professional indemnity insurance policy.
Freelance public liability insurance
If you work from premises and have clients visit you, or if you work offsite at clients or other premises, you should consider public liability, which protects you from costs of defending yourself, as well as any pay outs awarded, in the event that someone claims to have suffered a loss, injury or illness as a consequence of your business activity.
If you have anyone working for you – even on a casual or part time basis – you are required by law to have employers liability cover in place.
Product liability insurance
Working as a freelancer, you may not only provide professional advice, but also supply products and equipment. If a product that you have supplied is deemed to have caused injury or loss, you could find yourself in a position of being held accountable. Product liability insurance again protects you from costs, up to an agreed indemnity level, in this situation.