My projects aren’t high profile, do I need insurance?
Many freelancers think because they aren’t working on multi-million dollar projects or they’re working from home they don’t need insurance. Or they simply underestimate what their client can and will do.
Imagine you’re a photographer on location and something knocks your camera bag off a cliff or your memory card dies on the shoot. It’s not really your fault, but your clients won’t care and you could be liable for the costs of the shoot. Or perhaps you’re a web developer and your e-commerce software gets hacked on the day of a big sale. You’ll be glad you had insurance.
Are you considering a contract in the corporate, financial or government sector? Chances are you’ll need insurance before they’ll even hire you. So no questions there.
Public liability insurance
This is essential, regardless of the size of your business. It covers damage to third party property or bodily injuries resulting from services that you provide. It also covers accidents, which can be as simple as someone tripping over your cables and sustaining an injury.
Professional indemnity insurance
If you provide professional services or advice this kind of insurance protects you and your business against claims of negligence, errors or omissions. It provides cover if your client incurs a loss directly attributed to your services or advice.
Insurance for your gear and equipment
Many creative professions require gear costing in many thousands of dollars, losing this equipment could spell the end of your income for quite some time. Don’t learn this the hard way. There are some insurance companies who specialise in insuring creative professionals. For photography insurance in Australia have a look at Professional Photographers Insurance and for musicians check out Musicians & Singers Insurance.
How much does it cost?
To get exact prices for insurance you usually have to go through a quoting process on an insurance brokers website which can be a little frustrating. From our experience as freelancers, for decent public liability and professional indemnity insurance you should expect to pay between $50 and $100 Australian dollars per month. To cover gear like cameras and instruments, $500 a year should cover around $12,000 worth of equipment.
It’s a cliché, but it happens often enough to warrant it – do not learn about insurance the hard way. Getting your insurance sorted should take no longer than half a day and will be well worth the time and money in case something does go wrong.