Types Of Business Insurance That Every Freelancer Needs

​Many people who lost their jobs due to the government-imposed lockdown measures shifted into freelancing. A survey conducted last year revealed that 12% of the American workforce turned to freelance due to COVID-19. 

The demand for freelancers will inevitably increase in the future since nearly half of hiring managers are more likely to tap their services in the future. Freelancing is a type of business, and similar to any other company, freelancers are vulnerable to risks associated with running their business. 

Hence, freelancers like you need to protect yourself and your business. You can do that by getting business insurance for your freelancing business. Business insurance comes in many options that can provide financial protection to your business. Here are three types of business insurance that can benefit any freelancer:

General Liability Insurance
General liability insurance is one of the essential types of insurance for freelancers like you. It offers financial protection from claims that your business caused bodily injuries, property damages, or advertising injury to another person. 

In other words, it protects you from common accidents that you might encounter during the ordinary course of your business operation. For example, you are a freelance IT professional. During a meeting with a client, you are making a presentation when you accidentally tip over a cup of coffee that spills into your client's laptop. 

This incident will fall under property damage caused by your business. If you have general liability insurance, it can cover the cost of fixing the computer or getting a replacement.

Professional Liability Insurance
Freelancers that provide professional services need to get this type of insurance. Professional liability insurance protects you from claims regarding a professional error you committed, such as negligence in performing your job, not meeting the set deadline for work, or not completing your work.

For example, you are providing accounting services. Suppose you committed a clerical error that costs your client a large amount of money. 

Professional liability insurance could shoulder the legal costs in defending you from a lawsuit if you committed a mistake in your professional service. It can also cover the cost associated with a judgment in which you are found legally responsible.

Conclusion
Freelancing is a booming business today, and demand will continue to increase. And like any other business venture, you are facing risks that are part of running a business. Protect yourself and your business by getting the right types of business insurance for you. You can select from a variety of business insurance options suited for freelancers.

At Kapasu Insurance Services Inc., we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (760) 995-3853. You can also request a free quote by CLICKING HERE.