The rise of the gig economy has allowed people to make a living from their passions and skills. Whether you are a freelance writer, graphic designer, or mechanic, being self-employed offers the flexibility and freedom to work on your own terms. However, with freedom comes responsibility. As a freelancer, it’s crucial to have commercial business insurance to protect your assets and mitigate potential risks.
That’s right, commercial business insurance is not just for big companies. It’s equally essential for freelancers who operate as a sole proprietorship or LLC. One single lawsuit or claim can drain your financial resources and put your business and livelihood at risk. Commercial business insurance provides coverage against these potential risks and gives you peace of mind.
Freelancers can opt for various types of commercial business insurance, depending on their specific needs. General liability insurance is a primary type of coverage that protects your business from third-party claims of property damage, bodily injury, or advertising injury. Professional liability insurance (errors and omissions) is another type of coverage that provides protection against lawsuits related to errors or omissions in your professional services or advice.
How Commercial Liability Insurance Can Protect You
Errors and omissions (E&O) insurance is essential for freelancers providing professional services. It protects you against claims of negligence, mistakes, or failure to perform your professional duties. Here are a few scenarios where E&O insurance can come in handy:
A web developer makes an error in the code of a client’s website, causing it to crash. The client loses business due to the website downtime and sues the web developer for financial damages.
A graphic designer fails to deliver a project on time, causing the client to miss a critical deadline. The client sues the designer for breach of contract and financial losses.
A freelance consultant provides erroneous advice to a client, resulting in the client incurring significant financial losses. The client files a lawsuit against the consultant for professional negligence.
In all these scenarios, E&O insurance can cover legal fees, settlements, and damages incurred due to the claims.
Bill Palmer Insurance in Ohio
Every freelancer in the gig economy should consider obtaining commercial insurance coverage. While it may seem like an unnecessary expense, it can ultimately save your business from financial ruin in the event of a lawsuit or other unexpected events.
Bill Palmer Insurance in Ohio can guide and assist in selecting the appropriate coverage for your business needs. We offer a range of commercial insurance options tailored to freelancers’ unique needs. Our experienced agents can help you find the right coverage for your business and budget. So don’t wait until it’s too late! Contact us today to learn more about our commercial insurance options.
Special thanks to Scott Graham for the featured image.