Our short guide to help you understand the sorts of things that could happen and how your insurance could help you.
Here at ipro insure we specialise in insurance for freelancers, so it will come as no surprise that we speak to all different types of freelancers every day. One of the most common questions that we get asked is ‘What sort of claims could a freelancer have?’ – we have therefore put together a few examples below.
Type of Insurance: Professional Indemnity
Situation: You are a freelance PR consultant who has been brought in to help with a campaign for an upcoming product launch for a multinational drinks company. The client changed the logo quite a number of times and when you organised all the agreed materials to go to print at a cost of £20K, you inadvertently used the old logo. Not only do the materials need to be reprinted but the client has had to delay the launch which has cost them considerable amounts of money. The client is now looking to you to recover their financial loss.
How my insurance could help me:
Your professional indemnity insurance policy could help you in a number of ways. Firstly, they could provide advice and where necessary appoint a solicitor to help you defend the claim. Secondly, if you were found to be liable, then your insurance policy could also pay any award made against you up to your policy limit.
Type of Insurance: Public Liability
Situation: A client visits your office and you’ve left your bag near the door. As they are leaving they trip over the bag and injure themselves. They indicate to you that they hold you responsible for their injury and that you will be hearing from their lawyers.
How my insurance could help me: Your public liability insurer would be able to advise on what you should do. They could also provide legal advice or representation if necessary. Should your client be awarded compensation for the injury then your insurer could also reimburse you for that expense as well.
Type of Insurance: Management Liability Package
Situation: You get a letter from HMRC to say that you are the subject of an IR35 tax investigation.
How my insurance could help me: Tax investigations are time consuming and potentially costly to defend. Your insurer could help you with the costs of accountants and other professionals that you may need in respect of such an investigation.
Type of Insurance: Employers Liability
Situation: Your business has grown and you have too much work for one person and as a result have employed Sarah 3 days per week. Sarah has injured herself in the course of her employment and broken her leg. She has indicated that she is going to claim off you for her injury.
How my insurance could help me: If you have any employees then, under statute you must have employer’s liability insurance. Your insurer could defend the claim for you and pay for any compensation that was due to Sarah.
Type of Insurance: Business Equipment
Situation: You are travelling to meet a new client, and you have brought your laptop with you in order to show them some of your previous work. As you are leaving the train station, someone runs past you and steals your bag containing your laptop.
How my insurance could help me: Your insurer could pay for a new laptop and in some cases will even buy it for you and have it delivered within days, getting you back up and running as quickly as possible.