Technology and unstable economies have made it possible for millions of people to work as independent contractors. There are many benefits of being a freelancer. For example, you can work flexible hours and be your own boss. The downside is you are responsible for everything, particularly your finances.
While many contractors are conscious about accounting and contracts, they often forget about insurance. Luckily, commercial insurance is flexible enough to cover the demands of different businesses.
If you still need convincing, here are three reasons why getting this policy is the smart move.
Helps Secure More Clients
Your client can be vulnerable to a lawsuit by being involved with you. These days, some companies demand proof from freelancers that they have workers compensation insurance and general liability insurance before they'll even consider a contractor's proposal.
Having full coverage will boost your credibility with clients. You can even emphasize this fact on your website or other promotional materials. It will help you secure new clients and close more deals.
Unhappy Customers Can File Claims
The financial effect your work will have on a client can be murky. A client might believe that the working relationship they had with you affected them negatively, whether directly or indirectly. This can be the result of unclear expectations on both sides or a miscommunication.
Regardless of the reason, you can be held accountable. While it would be nice if you can hammer out a deal with the client, there's still the possibility that they will file a claim to recover any loss.
Home Insurance Does not Protect Home-Based Businesses
Conventional home insurance doesn't cover a freelancer's home-based business. Your equipment and materials could be exempt, and some insurance providers might even void your policy if you don't inform them that you're operating a consulting business out of your home. What's more, you're also at risk if a client or subcontractor visits your home and later on files a claim against you.
If you're a tech consultant, you're at a significant risk if you keep electronic records of your client's data at home. A cyber attack that affects your client could leave you liable beyond what you're financially capable of meeting.
Being an independent contractor might be the best career move you'll ever make. However, you still need to protect yourself, so make sure you sign up for commercial insurance.
At Desmond Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (859) 491-5100. Get your free quote today by CLICKING HERE.
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