Why buy insurance for freelancers?
Liability coverage for freelancers is known as Professional Liability insurance. The product is designed to protect you from mistakes or unforeseen events that could lead to legal disputes between you and your clients.
For example, imagine you've set up a website for a small business and your code crashes - halting online sales just days before Christmas. The business owner, after missing out on the biggest sales days of the year, sues you.
Events like this can easily cost thousands (or even tens of thousands) of dollars and professional liability insurance will cover it.
Also, keep in mind that many potential clients require freelancers to have insurance. Getting yourself coverage could help you grow your business.
What is covered?
Our freelancer insurance covers legal claims that can be brought against you relating to negligence, poor performance, and errors or omissions in your work that could have caused damage to clients. If a client thinks your work has caused them to lose money – whether it was creative graphics, consultancy, market research, or you fell ill and couldn't meet a deadline – they can sue you. Our insurance gives you peace of mind that your reputation and income is protected, covering the costs of any legal case against clients that claim damages against you.
What is not covered?
Professional liability insurance only offers protection against claims made against you. In other words, your client needs to sue you for the policy to cover you. The policy will not cover you for lost wages or income.
Professional liability also does not cover criminal or fraudulent activity, bodily injury or property damage. It also doesn't cover cyber threats like cyber extortion, ransomware, or security breaches. You'll need a separate cyber policy for that.
How much coverage do I get?
With Surround Core, we cover you up to $100,000 per policy period.