The gig economy is growing bigger by the day, with countless freelancers around the world finding that their line of work offers them immense flexibility and competitive wages. Despite the fact that more people are becoming freelancers, however, many in the gig economy have little understanding of the unique nature of their employment status. Few freelancers understand that they need business insurance, for instance, with many mistakenly believing that their financial wellbeing can be secured simply through hard work and determination.
For a freelancer, financial ruin can be one disaster away if you don’t have insurance. Here’s why freelancers need business insurance, and what you should consider if you’re going it alone right now.
Being a freelancer is stressful
If there’s one thing that’s certain, it’s that the gig economy is putting a serious strain on those laboring to make it a reality. Being a freelancer is stressful, with freelancers everywhere reporting higher rates of exhaustion and overwork than many traditional employees. Many in the gig economy think this is something that they have to suffer in order to enjoy prosperity and success, mistakenly believing that if they complain they’ll be tossed aside by their clients. The extreme anxiety of a freelancer thus continues to grow over time, with the stress of your work adding up and taking a serious toll.
Rather than sitting around and letting yourself waste away, you should be taking active steps to preserve your future. There’s no point in fighting burnout culture or navigating a dizzying market to find awesome clients if you end up facing financial ruin because of an unforeseen crisis, however. Thus, those freelancers who haven’t considered acquiring business insurance are walking on thin ice and effectively waiting for a disaster to come.
Indemnity insurance or general liability insurance, isn’t always easy to understand, but they can be lifesavers when a crisis strikes and you’re unprepared on your own. While many freelancers don’t see the need to invest in such luxuries, what too few of them realize is that such insurance is in reality a necessity, especially since the unique nature of a freelancer’s work can be brought to a halt with ease.
When a company’s equipment breaks, for instance, the company issues workers a replacement computer; when a freelancer’s laptop gets fried, however, they may not be able to instantly go out and get a replacement. Having a plan for when things go wrong is thus your only path to financial security.
Learning about freelancer insurance
For most freelancers, the kind of insurance that will interest you the most is either indemnity insurance or liability insurance. For those who are involved in freelance writing, for instance, indemnity insurance can prevent angry clients from being able to sue you in the event that they find the product you delivered to be unsatisfactory. Finding yourself insurance that’s been tailored for an independent worker is the only option many freelancers have at keeping themselves secure.
If you don’t have a massive corporate legal time on your side, you can only count on yourself and the preparation that you do ahead of time when a crisis occurs. Furthermore, some freelancers need to consider that while corporate employees have an office to work in, most gig economy workers only have their homes. If you’re working from home and use it for more than just residential purposes, it’s imperative that you have solid home insurance so that your living space and working space aren’t both ravaged in the unfortunate event of a fire or similar accident.
Having a home insurance plan that includes a homeowner’s policy which protects your belongings in the event of an accident can also guarantee that you stay working after a major crisis like a flood. If your laptop is destroyed yet covered by something like a business owners policy, for instance, you can rest assured that your clients will still receive your work on time and without any sort of delay. Many freelancers bless the gig economy because it frees them from the strict confines of an office, but what too few of them realize is that your home must be protected like a workspace, too, if it’s where you make your money.
Keep these tips in mind, and soon you’ll be a freelancing star with little concern about financial ruin.