1. What is liability insurance exactly?
According to Investopedia: it provides an insured party with protection against claims resulting from injuries and damage to other people or property. Liability insurance policies cover any legal costs and payouts an insured party is responsible for if they are found legally liable. Intentional damage and contractual liabilities are generally not covered in liability insurance policies. Unlike other types of insurance, liability insurance policies pay third parties, not policyholders.
2. What do you need liability insurance for?
Who pays what when someone steps over your laptop bag and hurt themselves when you visit a client? Other examples of potential damages:
- Lawsuits
- Copyright infringements
- Data breaches
- Cyber-attacks
- Property or equipment damage
Some companies, mainly larger ones require freelancers to have liability insurance before starting an assignment.
3. How much does it cost?
The price of liability insurance depends on your profession, risks and coverage. Anything between 100-500 € a year. It’s recommended that you read the small print carefully before purchasing your insurance to avoid surprises.
In some cases, it’s not possible to get liability insurance. This is for example if the profession is too difficult to define or the damage risk is perceived to be too high.
4. Where do I get liability insurance?
Insurance providers and brokers such as Securex Insurance Agent but also major banks provide liability insurance.
Tip: Remember: next to liability insurance you can and should additionally protect yourself with sound contractual agreements between yourself and your client.
Contact Securex Insurance Agent to get advice about your insurance and legal needs.
Kickstart your career as freelancer with the tools of Securex
- Do the Securex Freelance Check here to see if freelancing is something for you
- Download the free Start2Freelance Guide to learn about working as a freelancer
- Sounding board? Make an appointment for a personal introductory chat with one of the Securex coaches
