Being a freelancer is like managing a business on your own. Your clients depend on getting assignments done as well as you rely on them for sustainable cash flow.
Just like a business, a freelancing career is full of up and down steep curves where you face profits and losses alike. That’s why it is important to get an insurance policy that covers you and acts as a financial safeguard during an emergency.
Read on to know about different types of insurance policies designed just for freelancers and helping tips to save insurance costs.
Professional Indemnity Insurance
This insurance policy protects you when a client sues you for financial loss that occurred due to your suggestion or service. When you’re managing a micro-business on your own, it is a mind daunting experience to deal with legal professionals and claims in the background. So signing up with professional indemnity insurance will not only protect you from legal matters but also save time and money.
What it covers?
Professional Indemnity Insurance covers you for:
This insurance policy will provide a monthly income when you’re bedridden, suffering from an illness or met with an accident. Unlike a regular employee you don’t have the privilege to paid leaves that’s why you need to prepare a financial backup, thereby subscribing to income protection insurance is necessary.
What it covers?
Income protection insurance will cover you for:
If you work from home or remotely then you need not read about this insurance. However, if you own a small office or have meetings with clients before working on a project, then this insurance will cover for public liabilities. That means if a client meets with an accident on your premises, then this insurance cover will protect you.
What it covers?
Abbreviated as PA, this insurance policy will cover you for injury or death caused by accident. You can also include it as an additional cover to your private health care insurance. If you travel often for freelance business-related work, then it is necessary to get personal accident insurance which can save thousands of pounds.
What it covers?
Personal Accident Insurance will cover you for:
This insurance plan will cover your expenses and a monthly and/or one-off payment to your family after your death. If you’re a sole earner of your family or have dependents to support, then this subscribing to life insurance will financially support them.
What it covers?
Provide a monthly payout to your family.
This insurance cover is important when you have employees working with you. It will protect you financially if your employee sues you in case of an accident or illness caused by your work. In case you handle projects on your own and don’t have a team, then you don’t need employers liability insurance.
What it covers?
This insurance plan will cover you for:
While working as a freelancing you’ll have access to client’s company data through emails and cloud storage platforms. In case you’re a cyber crime victim who lost data to a hacker, your client can sue you for this. But don’t worry cyber and data risk insurance will protect you from cyber attacks as well as accidental data breaches.
What it covers?
This insurance plan will cover:
Register as a Sole Trader
This will help in saving costs and help you in running your freelance business smoothly. By registering as a sole trader you won’t be affected by IR35 legislation in the UK, thereby saving tax.
Keep a record of your Revenue
Maintain a record of your revenue by tracking your sales and expenses on a regular basis. This will help in providing the right information to the insurer, so they can suggest the right insurance policy for you.
Pay taxes on Time
Pay your taxes on time by completing the annual self-assessment tax return. This will help you maintain a legal revenue record and save on insurance premiums.
Register for VAT
If you make more than £83,000 in revenue as a freelancer then you should register for VAT here. It will help you in saving taxes and keeping a clear record of your revenue.
We at Simple Insurance Solutions have proven experience of providing insurance for freelancers and sole traders. Just let us know about your business, your insurance needs and we’ll find the right insurance plans for you. So you’re not financially stressed due to uncertain events and continue to scale your business.