Freelancers are self-employed entrepreneurs who manage their own business and earn wages on a per-task or per-job basis. They are their own business owner and therefore are held responsible for any property damages, injuries, or liabilities while on the job. Business insurance for freelancers can offer protection from client lawsuits, work oversights, lease agreements, or common hazards that may occur.
Looking for the best freelance insurance options for freelance or contract workers? Use our guide to learn more.
What is Business Insurance?
Business insurance is a type of insurance coverage for businesses that seek protection from potential lawsuits, contract disputes, or property damage. Freelancers evaluate their coverage needs based on possible risk factors, which can vary based on how and where they operate.
Nonetheless, having business insurance can prevent business owners from facing devastating losses that may spring up during their regular line of work. After all, emergencies and unfortunate events can occur at any time.
Business Insurance Explained
The U.S. Small Business Administration encourages freelancers to get business insurance to protect themselves from unexpected costs and to keep personal assets safe. There are several types of business insurance that you may need depending on your situation.
Types of Business Insurance
Here are several types of business insurance all business owners, including freelance or contract workers who own their business, may want to consider.
General Liability Insurance
Any business can purchase general liability insurance to protect against financial losses due to bodily injuries, medical expenses, and property damage occurring on your premises or resulting from your work. Advertising injuries such as slander, copyright infringements, and libel are also covered.
Professional Liability Insurance
Self-employed workers benefit from professional liability insurance since it covers legal fees, administrative costs, and settlement costs in the case of a lawsuit. Common problems can be delivering products past the deadline or miscommunicating project deliverables, therefore being accused of being professionally negligent.
Product Liability Insurance
Self-employed business insurance can include product liability insurance, which protects your company from lawsuits based on a product’s manufacturing, delivery, installations, and overall supply process. There is also protection in case a product malfunctions or has a defect, resulting in bodily injuries or property damage. Examples include having misleading instructions, production flaws, or design deficiencies.
Commercial Property Insurance
Whether you work from home or own an office, commercial property insurance can cover the cost to replace or repair business property that gets damaged due to a break-in, vandalism, hail storm, or fire. It is thereby essential to take stock of all your physical assets and property in case a burst pipe or theft occurs.
Workers’ Compensation
Freelancers often work with others to meet a task or job. Thus, having workers’ compensation insurance offers wage benefits and medical care in case employees fall ill or get injured on the job, no matter who is at fault. Injuries can also include natural disasters, violence at the workplace, or terrorist attacks.
Commercial Auto Insurance
Many businesses need to get to and from clients and work sites. Thus, having commercial auto insurance covers bodily injuries or property damage resulting from business-owned vehicles driven during business operations. However, employees’ personal cars or car rentals can also be covered if a non-owned auto policy is added to your commercial auto insurance.
Home-Based Business Insurance
Homeowner’s insurance can have home-based business insurance added as a rider to protect work equipment or critical business files and against third-party injuries for freelancers who work from their personal homes.
Business Owner’s Policy or Bundle
A bundle of general liability insurance and commercial property insurance make up a business owner’s policy. This can save the insured on costs in contrast to purchasing two separate policies.
Cyber Liability Insurance
Data breaches can happen often, and it is essential to keep client data, money transactions, and personal information safe. Dealing with cyberattacks can be costly due to informing affected customers, having to monitor credit, and pay for any legal expenses.
Best Business Insurance Providers for Freelancers
Navigating a plethora of insurance for your business can be confusing. Benzinga is here to introduce you to the process and share notable attributes of top business insurance providers.
Same Day Coverage?
Yes
Online Application?
Yes
Pros
- More than 200 years of insurance experience
- Provides online quotes
- Has a solid financial rating
- Offers a wide range of commercial insurance products
Cons
- Pricing is entirely quote-based
Best for Business Owner’s Policy: The Hartford
The Hartford has over 200 years of insurance experience and served over a million small business owners.
The Hartford is a leading expert in customizing clients’ needs and offering an expansive range of policies such as flood insurance, workers’ compensation, event insurance, and loss of business income.
Special discounts are offered for bundling options or adding extra protection.
Same Day Coverage?
Yes
Online Application?
Yes
Pros
- Quick quote process
- Licensed agents to assist you
- Can choose from top insurance providers
Cons
- No mobile app
Best for Sole Proprietors: Simply Business
Simply Business has tailored insurance options for the self-employed, such as photographers, carpenters, IT consultants, plumbers, and interior designers. That’s why it’s a great choice for business insurance for freelancers.
Policy options are created in less than ten minutes, with licensed agents always available to assist you.
Simply Business has top-rated customer service and transparent quotes so that you can pick the right plan for your work.
Same Day Coverage?
Yes
Online Application?
Yes
Pros
- Flexible general liability and professional liability policy options
- Fast application process
- Ability to pause monthly coverage
- High-quality mobile apps
Cons
- Doesn’t offer business interruption insurance
- Doesn’t offer commercial property insurance
Best for Flexible Coverage: Thimble
Thimble offers temporary insurance for businesses that need flexibility for short-term insurance policies and instant upgrades. Liability insurance can be purchased by the hour, day, or month.
Applications take only a minute to fill out, and plans can be paused or canceled immediately if work starts to slow down.
Thimble offers great business insurance for freelancers and contract workers. And you can pause monthly coverage, meaning you’re not paying for coverage for slow months or times when you have lighter than usual workloads.
Same Day Coverage?
Yes
Online Application?
Yes
Pros
- Strong financial stability
- 24/7 customer support
Cons
- Limited when it comes to specialized policies
- Involves thrid-parties often
Best for Bundling Coverage: Progressive
Progressive offers annual savings for drivers who make the switch to their car insurance provider. Their comprehensive coverage can apply to vehicles such as motorcycles, classic cars, RVs, and even segways.
Additional discounts are also available for paying upfront or if you have been in operation for three years or more. If you travel a ton for work or need commercial car insurance, Progressive may be your one-stop-shop for all your business needs.
Pros
- Sells insurance policies directly
- Strong financial backing
- Cost-efficient policies
Cons
- Only business policies
- No additional discounts
Best for Workers’ Compensation: biBERK
biBERK is great for small businesses who need great worker’s comp coverage — without a lengthy or complicated signup process. Save up to 20% on coverage compared to other providers, and enjoy peace of mind with biBERK’s state and federal compliant policies. Also, biBERK will grow with you, offering expanded coverage that moves with the trajectory of your business.
All parts of the biBERK experience are online, from the application to submitting a claim. This allows busy business owners like you to keep your focus where it matters most.
How to Compare Business Insurance
When comparing insurance plans, look at reputable companies that have positive reviews from customers. Do not solely focus on pricing, but look at other protection, customer service, policy limits, payment options, and resourceful benefits being offered.
Pick a policy that enables your business to grow and give coverage right away.
Get Business Insurance Coverage Today
Get in touch with Benzinga’s partners, sign up for a quote, and work with a licensed agent.
Benzinga offers a variety of insurance that will protect your financial assets and business from harm. Get introduced to multiple providers, and you will be guided by a professional insurer.
Frequently Asked Questions
How often should I assess my business insurance coverage?
It is beneficial to reassess your business insurance yearly since your business is constantly changing as operations grow, more employees are hired, or as liabilities rise. Contact your insurance agent to review future business goals and plans, add or remove additional coverage, and change policy terms based on present conditions.
Is business insurance worth the cost?
Not having business insurance can result in a loss of thousands of dollars due to having to pay for damages or expenses out-of-pocket. It is vital to protect your dream job in case a disaster, theft, or accident happens. Plus, it is essential to protect your work’s reputation and brand in case a lawsuit occurs. After all, anything can happen.
Benzinga crafted a specific methodology to rank business insurance. We prioritized carriers based on coverage options, business types served, customer service experience and how quickly and easily you’re able to get insured including online tool usage. We also included business insurance quote aggregators in lists to make it easy and efficient to compare policy quotes and options. To see a comprehensive breakdown of our methodology, please visit see our Business Insurance Methodology page.
Simply Business Insurance makes buying business insurance easy for everyone. You can quickly, easily and affordably get insurance for your business – whatever the niche may be. Simply Business Insurance requires low down payments and flexible payment plans to fit each person’s individual budget. Its friendly staff puts customer service as its No. 1 priority to ensure you get the best experience.
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