What insurance do I need when self-employed?
If you’re newly self-employed or have recently turned to freelancing, you’ve probably not had to deal with getting business insurance sorted before. But don’t worry, we’ve got self employed insurance covered - and we make it simple to buy online, on a flexible monthly subscription basis.
Types of insurance for self-employed professionals
Let’s break it down. To start with, you’ll definitely want to have what we call the three essential covers of business insurance - public liability, business contents insurance, and professional indemnity insurance.
1. Public liability insurance
If you interact with customers or members of the public, public liability cover is a must-have. It’s there to protect you against claims from any of these people you interact with, if they suffer an injury or damage to their property as a result of your work. It’s one of the most common types of claim in the UK.
For example, if someone were to injure themselves on your equipment (it could be as simple as a trip over your laptop charging cable), it could lead to a lawsuit. Public liability would cover you for this type of claim.
2. Business contents insurance
If you’ve got any work-specific equipment at all, such as laptops or monitors, you’ll want business contents cover. If you’ve got home contents cover, you’ll be familiar with this type of insurance. It’s pretty straightforward and covers your business equipment, including portable items such as laptops. A few of the risks it covers you for are:
- Malicious damage
- Storm damage
Unlike many insurance providers, Digital Risks covers contents if you’re based at a co-working office too. Plus we’ll cover your equipment if you’re travelling (for up to 90 days per year).
Much like home contents insurance, it all adds up quickly and your contents are probably worth far more than you’d initially think, so it can really pay off to make sure you have an appropriate level of business contents cover.
3. Professional indemnity insurance
Professional indemnity cover (PI) is designed to protect your liability for any work that you do for a customer, whether it’s work in the form of advice, or providing a service. Basically, if a customer pays you for it, there’s a risk that they could sue you or claim compensation if something goes wrong as a result of your work.
For example, if you were a software designer, licensing your software to clients, and it created expensive issues or errors for them, you’d be liable and it would be within their rights to sue you. PI would cover you for this. At Digital Risks, our PI cover also extends to work ‘done on behalf of’ (subcontracted). So if you hire a subcontractor to carry out this work, it’s covered as your own work.
Our PI cover also includes media liability as standard. This covers you if you get sued - this could be the result of something as innocent as unwittingly posting a trademarked image from your company Facebook page, or tweeting something that unintentionally causes upset, from your company Twitter.
Unlike many other insurance providers, we can also cover ‘retroactively’, so if you were to be sued for work carried out before the start of your policy, it may still be covered.
Depending on the type of work you do, you may also want to consider:
4. Cyber insurance
Cyber insurance, also known as cyber liability cover, protects your business in relation to damage done due to your computer systems or digital data being compromised. Cyber attacks cost UK businesses millions of pounds each year and with GDPR imposing fines of up to €20m or 4% of annual turnover – whichever is higher - cyber cover is certainly gaining popularity. Essentially, if you’re using a computer for work, you should consider this cover.
How can Digital Risks help you?
At Digital Risks, we’re committed to understanding your insurance needs. That’s why we strive to make self-employed insurance a simple, pain-free experience, with flexibility built in. We want it to work for you.
Unlike other insurance providers who tend to offer annual insurance contracts, we offer commitment-free cover by monthly subscription. You can chop and change covers as you please, by logging into your online account - and if you’ve got questions for us, we’re here for you - just give us a call on 0333 772 0759, or send us an email at firstname.lastname@example.org.
Fast, effective and commitment free insurance for digital businesses.
Although public liability cover isn’t a legal requirement for freelancers, it’s considered a basic cover by most. Moreover, depending on the type of work you carry out, clients may sometimes insist on you having this type of cover.