As a freelance writer, you may wonder if you need business insurance. The answer is that it depends on a variety of factors. Here's what kinds of business insurance freelance writers might need and when they might need it.
Business insurance protects your business from financial losses due to unforeseen circumstances such as accidents, injuries, property damage, or legal action. If you have any employees, business insurance can also protect you from liability for their actions. Depending on the scope of your freelance writing business, you may need one or more types of business insurance.
Professional Liability Insurance
Also known as Errors and Omissions (E&O) Insurance, this type of business insurance protects you from financial losses due to errors or omissions in your professional services. For example, if a client claims that you failed to provide the services agreed upon or that the quality of your work was poor, professional liability insurance can help cover the costs of any resulting legal action.
General Liability Insurance
This type of insurance protects you from financial losses due to third-party claims of bodily injury, property damage, or personal and advertising injury (such as defamation). General liability insurance can help cover the costs of medical expenses, repairs, settlements, and legal fees incurred as a result of a claim.
Commercial Property Insurance
If you have a physical location for your freelance writing business, even if it is inside your home, commercial property insurance can help protect your business from financial losses due to fire, theft, wind damage, and other covered perils. This type of insurance can help pay to repair or replace damaged property, as well as lost income if your business is forced to close temporarily due to damage from a covered peril.
Depending on how your business is structured, you may be able to purchase short- or long-term disability insurance for yourself. If you injure your hand, wrist, or arm and are no longer able to type, a short-term policy can pay a portion of your normal earnings to tide you over until your injury heals. Similarly, long-term disability will help pay your bills should you be unable to continue as a writer due to a closed head injury or other brain damage.
There's no one-size-fits-all answer to whether or not freelance writers need business insurance. The best way to determine if you need business insurance is to assess your risks and speak with an insurance agent about coverage options. Even if you don't currently need business insurance, it's important to keep in mind that your situation could change in the future, so it's wise to stay up-to-date on coverage options.