What Every Freelancer Needs To Know About Business Insurance
Written by: YOURS INSURANCE AGENCY, August 20, 2019
If you’re a freelancer, you’re part of one of the fastest growing tribes in Singapore. There are currently about 179,000 freelance workers across the country; that’s about 8-10 per cent of the resident workforce.
Freelancing holds plenty of attractions, not least the freedom to choose your clients, your hours and your location. With flexibility, variety and no boss to answer to, for many it’s the perfect lifestyle.
On the flipside, freelancing also exposes you to certain risks that you wouldn’t face as a traditional employee, including responsibility for any damage or legal claims that arise. That’s why investing in the right insurance is essential, so you won’t be saddled with a crippling bill if anything goes wrong.
Yet, many traditional business policies aren’t designed for freelancers, due to the more flexible nature of what you do. It can be easy to find yourself with insufficient cover, or paying way too much, if you don’t shop around carefully.
To help you navigate your options, we’ve put together a quick guide to some of the policies you should consider getting, to safeguard your business.
Professional Indemnity cover
Most freelancers are in the business of offering consultancy or advice, which means that professional indemnity insurance (PI) is a good place to start. PI will protect you if you make a mistake, or if a client suffers — or claims to suffer — a financial loss as a result of your work, covering legal expenses and compensation you have to pay. So, if you’re a software developer, IT consultant, advertising or design consultant — or something similar — this is a must-have. You may also find that clients insist you have PI — so it could even help you win business (or not lose it!).
Chances are there’s some kit that you rely on for your business, whether that’s a laptop, filming equipment or more technical machinery — so, protecting this should be a priority. Office contents covers everything in the office, including your fit-out, computers, office equipment, furniture and documents. You should also consider portable equipment insurance, which covers everything you take out and about with you, such as laptops, mobiles, cameras and tablets.