Business insurance for freelancers
Freelancers face the same business risks as a large company, but without the protection of an employer's insurance. Business insurance for freelancers helps cover your liabilities to protect your personal assets.
Recommended policies for freelancers
General liability insurance
A general liability insurance policy covers basic third-party risks, such as a client who slips and suffers an injury at a freelancer’s home office.
- Accidental client injuries
- Accidental damage to client property
- Libel and other advertising injuries
Errors and omissions insurance
Errors and omissions insurance (E&O) protects freelancers from legal costs related to their work performance. It's also called professional liability insurance.
- Mistakes in your work
- Failure to deliver promised results
- Accusations of negligence
Cyber liability insurance
This policy provides freelancers with financial protection against data breaches and cyberattacks. Bundle it with errors and omissions insurance in a package called tech E&O.
- Customer notification costs
- Credit monitoring services
- Data breach lawsuits
Workers' comp insurance
This insurance covers work-related medical costs, which health insurance could deny. A client might require it in a contract with a freelancer.
- Work-related medical bills
- Disability benefits
- Client contract requirements
Business owner's policy
A BOP combines general liability coverage with commercial property insurance at a discount. It protects freelancers from common third-party lawsuits, property damage, and theft.
- Accidental client injuries
- Accidental damage to client property
- Damaged or stolen business property
Professional liability insurance
This policy, also called errors and omissions insurance (E&O), protects small businesses that provide professional services or advice. It covers lawsuits related to work performance.
- Work mistakes and oversights
- Professional negligence lawsuits
- Late or incomplete work
Commercial property insurance
This policy covers the cost of property damage caused by incidents that are out of your control. Many commercial landlords require this coverage.
- Extreme weather
- Fire
- Theft and vandalism
Commercial auto insurance
Most states require that you carry commercial auto insurance for vehicles owned by your freelance business. This policy covers costs related to an accident involving a business vehicle.
- Medical bills from an auto accident
- Property damage caused by your vehicle
- Vehicle theft and vandalism
Fidelity bonds
A fidelity bond compensates the injured party if an employee steals money or assets. Clients might require freelancers to buy a bond in the terms of a contract.
- Employee theft
- Employee fraud
- Illegal funds transfer
How much does freelance business insurance cost?
Factors that affect premiums include business income, types of insurance purchased, and deductibles. From our customer data, here's a quick look at average costs for freelancers:
General liability insurance: $29 per month
E&O insurance: $59 per month
Workers' comp: $32 per month
Start a free application to see property and liability insurance costs for your business.
Hear from business owners like you who purchased insurance coverage.
Freelancer insurance requirements
Sometimes freelancers need to carry their own insurance. When you're insured, it shows your business can handle a lawsuit, so any issues won't escalate to affect others. It protects your personal assets and gives your clients peace of mind.
You may need insurance for:
Contracts. Clients might require you to carry E&O insurance, workers' compensation, or a fidelity bond to avoid legal fees and other financial losses. You can also ask clients to include you as an additional insured on their policy.
Leases and loans. Your landlord or a lender may require a certificate of insurance as proof of general liability insurance or commercial property insurance. Homeowner's insurance and renter's insurance only have limited coverage, if any, for your business equipment and risks.
Freelance marketplaces. Freelancers may need general liability insurance or other coverage to participate in freelance marketplaces, such as Fiverr and Upwork. Make sure to read the terms of service for any freelance platforms you use.
Compliance with the law. Vehicles registered to a freelancer's business must be covered by commercial auto insurance. This policy covers the cost of property damage, medical bills, and lawsuits if you get into a car accident. In rare situations, state laws may also require workers' comp for freelancers.
What are the insurance requirements in your state?
Bundle insurance policies to save money
Freelancers can save money on commercial insurance coverage with two packages common in the IT industry.
A BOP bundles commercial property insurance and general liability insurance.
General liability insurance is the policy that most small business owners purchase first. It covers common third-party (non-employee) lawsuits, including bodily injuries, property damage, and copyright infringement.
The policy is especially beneficial for freelancers who invite clients and customers into an office or storefront (such as a PC builder or computer repair shop), handle valuable items that belong to others, or have a website or social media presence (like graphic designers).
Commercial property insurance is critical for protecting your work equipment and your building, if you own it. This policy is a worthwhile investment even if you’re renting an office space, as your landlord’s policy won’t cover stolen or damaged business property.
Tech E&O is a specialized bundle for IT and technology risks.
Technology E&O insurance is crucial for freelancers in the tech industry and professional services. It covers the cost of lawsuits related to the quality of your work, including any security recommendations. It bundles errors and omissions insurance with both forms of cyber liability insurance:
First-party cyber liability insurance helps freelance businesses recover from data breaches and cyberattacks. It covers the cost of credit monitoring services, crisis management, and cybersecurity incident investigations.
Thirty-party cyber liability insurance protects freelancers if a client sues you for failing to prevent a data breach or cyberattack at their business. If you find yourself in this kind of dispute, it covers legal defense costs, settlements, and court-ordered judgments.
Chat with an insurance agent to find out more about bundles and discounts.
Get free quotes for freelancer liability insurance
With TechInsurance, freelancers and independent contractors can compare quotes from top-rated insurance providers with one easy application. Get free quotes for freelance liability insurance and property insurance policies that match your risks and budget.