Professional liability insurance remains an option — until it isn’t! It’s common for clients to mandate independent contractors and freelancers to have adequate liability insurance as part of their legal relationship. This requirement ultimately reduces the client’s risks.
When you’re insured, your clients know they can claim your policy if something goes wrong.
So suppose you commit an error leading to hundreds of thousands of dollars in losses for your client. They would likely sue for compensation. But if you don’t have hundreds of thousands of dollars to compensate them, there’s little they can do.
A professional liability policy ensures your client that money’s available if they file a claim.
Further, individuals who aren’t insured often avoid taking the blame for their mistakes. If they accept their negligence, it may mean paying out of pocket. The uninsured professional may push the responsibility towards the client instead.
This back and forth creates enormous stress for both parties. However, the proper liability insurance remedies this issue. Because the insurer ultimately pays out any compensation, a freelancer who failed to meet a hard deadline may accept responsibility because their policy pays compensation costs.
These risks are top of mind for clients hiring independent contractors. When you have the correct liability policies, you ease client concerns. They have one less thing to worry about and one more reason to hire you for the job.
Having the right insurance also makes your business look professional. It shows that you’ve thought about your business’ and your client’s risks and took steps to mitigate them. You’re not just the hobbyist running a freelance business for a bit of extra cash.
Professional liability insurance is affordable with APOLLO, Canada’s largest online insurance marketplace.
Get a free quote and purchase professional liability insurance in under five minutes with our online portal. Best of all, you can quote, purchase, and bind your policy from the comfort of your own home and access the portal 24/7 and from any device.