In·vin·ci·ble
inˈvinsəb(ə)l/
adjective
too powerful to be defeated or overcome. “An invincible warrior”
A lot of 1099ers feel invincible. It’s probably true in a lot of ways. You’re a hustler with talent, and you’re killing it in the self-employed game. But as you get more popular, you might realize that getting business insurance can’t hurt.
Even if you’re invincible 98% of the time, it only takes a 1% margin of error to wipe out your small fortune. These are just a few of the things that could happen in that 1% margin of error.
That’s why having the right liability insurance when you’re a freelancer is a must.
1. Your great advice ends up being the wrong advice.
You’re expected to bring your expertise and skills on a certain subject to push projects to the next level. That’s why clients hire you. If your advice causes something to fail, and your client is sad, then you could probably end up sad, too… in court.
You’ll be thanking yourself for getting a professional liability policy.
2. Your computer crashes / dog eats the computer / hard drive putters out, and you end up missing promised deadlines.
We’ve all been there. Your computer screen starts flickering. Your heart stops. No big deal, a little restart should do the trick. It won’t turn off. You quickly realize this could be the end of life as you know it. Okay, that’s a little dramatic… or is it?
You’ve lost all your work and there’s no way you’ll get it to the client in time. You’re going to have to break it to them… And if they lose money because their project, campaign, or whatever you were working on is delayed, they could hold you accountable for the losses.
You’ll be glad you splurged on a professional liability policy, trust us.
3. A celebrity sues your client for libel, and they blame you.
It seemed harmless at the time to use that [celebrity] look-alike in that social media post for a local peanut farm. You didn’t know it was going to go viral. You didn’t know people would really think it was [a celebrity]. And you certainly didn’t think [a celebrity] was going to sue your clients for libel.
It was just a little tweet… but now you’re on the hook in court. If you have a general liability insurance policy, you won’t have to pay for expensive court costs and legal fees.
4. Your computer/equipment gets damaged (or, even worse, stolen) and you wish you could replace without emptying your bank account.
Sure, you might be using a computer that was handed down from your older sister. If something happens, then who cares? You’ve been saving to buy a new one anyway. But as you get going and become more legit, you’re going to buy new equipment, cameras, printers, or whatever it is you need to do business. And your homeowners/renters insurance probably won’t have enough coverage for all that.
With a business owner’s policy, not only do you get some liability coverage, but you also get property. This is important, because your homeowners policy will typically only cover up to $500-worth of business property damage.
5. Your client interprets your contract in a totally different way than you meant it.
Contracts are awesome. They’re wonderful, they’re great, and totally necessary. But everything in life is subjective, and everyone has their own unique spin on things. If something goes south, things can get muddy quickly. Especially with a high-profile client– because expensive lawyers are paid to argue contract cases in their favor.
Professional liability insurance will help save you from costly misunderstandings if you wind up in court.
6. Your client blames you for copyright infringement claims from some guy in Kansas.
You just finished a killer campaign and you’re sure there’s an Addy with your name on it in the near future. That’s until you find out someone is claiming it was their idea.
What? Can’t we all agree that nothing is original anymore? That we all have slightly different perspectives on things that have been done a million times?
Well, that might be a good starting argument if you have to go to court. And general liability insurance will help you pay for those court costs.
7. Your meeting at a high-profile client’s office ends in tears after you break something.
They’re giving you a tour of their new office. It’s so cool. They introduce you to the team that is using their new 3-D printer to make fake unicorn taxidermy. What? Awesome. That is, until you spill your venti skinny sugar-free vanilla whatever latte all over the control panel.
A little embarrassing… but general liability insurance will have you covered.
Pogo is an online business insurance agency dedicated to helping entrepreneurs and the self-employed get the right insurance, easily.Learn more about types of business insurance for freelancers.