Insurance can provide you with the protection and peace of mind to grow and scale your freelance business. While peace of mind is priceless, it doesn’t help you set a budget for your freelancer insurance costs. So we’re rounding up some of the most popular policies for solopreneurs and home-based businesses so you can understand the costs associated with protecting your business.
No time for guesswork? Request a personalized quote for freelancer insurance from Coverdash to find out exactly how much it will cost to get the coverage your freelance business needs.
How Much Does General Liability Insurance Cost?
General liability insurance is the most common insurance protection for businesses of all sizes, including freelancers, solopreneurs, and home-based businesses. General liability (GL) is meant to shield your business against third-party injuries, property damage, and advertising injuries, like slander, libel, and copyright infringement.
Did you know? Some freelancer marketplaces, such as Fiverr or Upwork, may require you to carry general liability coverage before you can list your services. Fiverr, for example, requires you to carry adequate general liability insurance to cover the more common risks appropriate to the services you offer.
General liability insurance for freelancers is more affordable than you may think — a Hiscox survey of 50,000 small business owners revealed the average cost of general liability is around $30.00 per month.
How Much Does Professional Liability Insurance Cost?
Another common freelancer insurance policy protects your business against lawsuits from clients who claim they’ve suffered a financial loss due to alleged negligence or mistakes from your work. Professional liability insurance is particularly popular with freelancers who provide a service or offer advice and consulting to clients.
If you’re a service provider or consultant, such as an IT professional, website designer, graphic designer, photographer, accountant, or financial consultant, you may want to protect your business with professional liability insurance (also known as E&O or errors and omissions insurance).
Whether you’re at fault or not, professional liability is intended to help cover legal costs in the event of a lawsuit from an unsatisfied client who feels you’re responsible for their financial loss.
The median cost for professional liability insurance is around $60 per month. Most small businesses and freelancers invest between $500 - $1,000 annually for the peace of mind of this service-based business protection.
How Much Does a BOP Policy Cost?
So far, each freelancer insurance policy averages less than $100 per month, a price most solopreneurs could easily afford. However, when you need multiple coverages to protect your business, the cost of freelance coverage can add up.
A Business Owners Policy (BOP) provides a cost-savings benefit for small business owners who need multiple policies to protect their business. BOPs typically combine the protection of general liability and commercial property into one packaged policy that costs less than purchasing them separately.
Combining these two policies into one BOP bundle could cost you an average of $57 per month, although your exact costs could vary depending on how much coverage you need and whether or not your BOP bundles in additional protections as well.
How Much Does Cyber Liability Insurance Cost?
Many freelancers can benefit from the protection of cyber liability insurance, a policy designed to protect your business in the event of a data breach or data loss.
Advances in technology allow many freelancers to work wherever a laptop and WIFI network is available. “Digital nomads” is a term used to describe the intrepid explorers who run their freelancing businesses as they wander from one (often exotic) local to another. While other freelancers may wander no further than the local coffee shop, the data breach risks remain the same.
Cyber liability insurance can help protect your business from the costs associated with a data breach or hack if you handle sensitive information such as credit card information, client data, or personal information.
Cyber liability is becoming increasingly popular with IT professionals and other freelancers in the technology space. The median cost of a cyber policy is around $140 per month.
Get a Quote for Freelancer Insurance from Coverdash
Coverdash provides insurance solutions for freelancers, solopreneurs, and home-based business owners. We specialize in freelance insurance, insurance for ecommerce sellers, and coverage for small businesses, and we can provide a fast and accurate insurance quote from top-rated carriers that’s tailored for your specific business needs. Request your quote today.