Freelance Insurance Ontario

Freelance Insurance For Ontario Professionals 

Whether you’re considering the option of going freelance or no stranger to the freelance life, you’re on a career path that comes with the freedom to be your own boss and make your work suit your lifestyle rather than the other way around. There are plenty of perks that come with being a freelancer, but it can also expose you to some big risks that need to be managed effectively to ensure your continued success.  

The most critical tool for risk management is the right freelance insurance. Ontario freelancers with a robust business insurance package that addresses common risks they are most likely to encounter, can provide peace of mind. Knowing you are protected from paying unexpected out-of-pocket costs that come along with being sued or replacing business equipment after an incident. Call Morison Insurance today to speak with a licensed, experienced Insurance Broker who can help you find the coverage you need to protect yourself and your business from unexpected financial losses.  

What is Freelance Insurance? 

Insurance for full-time freelancers is essentially a type of commercial insurance that is designed for self-employed professionals who are freelancing in a wide variety of industries. Not all freelancers do the same type of work, of course, and freelance insurance is not a one-size-fits-all solution. Instead, it’s tailored to address your potential risk exposures based on factors such as what types of services you provide, who you work with, your experience level, the industry you work in and much more.  

There are many different types of freelance insurance coverage that you may need, but they can generally be divided into two broad categories: freelance liability insurance and business property coverage. Suppose you have legal action brought against you. In that case, liability insurance is there to cover associated costs, such as legal mediation, attorney fees, court fees, and settlement costs, should you be found liable in court. The reasons why you might be sued determine the types of freelance liability insurance you may need. Various types of property insurance, on the other hand, exist to offer you insurance compensation to deal with costs like repair, replacement and restoration following an event that damages or destroys your business property, such as a fire, natural disaster or theft.  

Who Should Have Freelance Insurance? 

Working as a freelancer in any capacity or industry should have the protection against paying out of pocket for unexpected expenses that come with the right freelance insurance in Ontario. That includes a wide range of freelancing professionals such as:  

• Writers and editors  
• Tutors and instructors  
• Translators  
• Graphic designers  
• Software developers  
• Web developers  
• Videographers and photographers  
• Audio-visual editors  
• Social media managers  
• Virtual assistants  
• SEO specialists  
• Human resource managers  
• Accountants and bookkeepers  
• Data entry operators  
• Consultants  

What Types of Coverage Are Included With Freelance Insurance? 

The types of freelance insurance coverage you need varies so it’s essential to make sure you have the best coverage options for your particular freelancing business and your unique risk exposures. When you speak with a qualified Broker at Morison Insurance, we start by getting as much information as possible about how you operate your business so we can track down the right freelance insurance and coverage limits for you, specifically. Here are some types of insurance coverage for freelancers that are well worth considering for most, if not all, freelancing professionals.  

Professional Liability Insurance 

Professional liability insurance, also called errors and omissions insurance, is the most crucial type of freelance insurance necessary for anyone working as a freelancer. No matter what industry or career field you work in, you provide professional services to your clients that may include designing, consulting, offering professional advice and delivering results. Those types of services are in high demand, but they also put you in a position where you are potentially liable for causing financial losses to your client.  

Suppose your client or another party alleges that you are responsible for negligence, breach of contract, acts of misconduct, undelivered services, misrepresentation, bad or inaccurate advice, slander or libel, and more. In that case, you will need to defend yourself in court—and if you are found liable, you could be ordered to pay a settlement. In that type of situation, your professional liability insurance policy makes you eligible to receive insurance compensation to cover costs such as your legal defence and settlement up to the coverage limits listed on your policy.  

Commercial Cyber Insurance 

Commercial cyber insurance is an important addition to most freelance insurance packages. Some freelancers conduct all or nearly all their business online, which makes perfect sense for professionals such as software developers and graphic designers. However, even freelancers who do most of their work in person are still likely to conduct some business online, from emailing clients to sending and receiving payments online. You may need to store or send sensitive information such as your clients’ financial records, identity documents or even trade secrets, and that leaves you vulnerable to the possibility of being targeted by hackers.  

You are responsible for safeguarding that information while it’s in your care, so if it’s stolen or your clients’ privacy is breached, you could have legal action brought against you for failing to protect the information and your clients’ interests adequately. In that case, the cyber liability portion of your freelance insurance would offer you compensation to deal with the costs of the lawsuit, and you may also be able to receive funds to deal with related expenses, such as notifying your clients of the breach or reputational management.  

Commercial General Liability (CGL) 

Commercial general liability insurance is a cornerstone of most business insurance policies, and it’s also a beneficial addition to freelance insurance policies. CGL insurance offers liability protection in the event that you are sued for causing third-party bodily injuries or third-party property damage. For example, if you are a tutor visiting your client’s home to prepare their child for a college entrance exam and you accidentally spill your coffee all over a costly antique rug, the client could sue you to recover the cost of repairing or replacing the rug. Your commercial general liability coverage on your freelance insurance would provide you with the funds necessary to deal with legal mediation and defence, along with the cost of repair or replacement for the rug, up to the limits on your policy.  

Business Contents Coverage 

You may not have a lot of commercial equipment that you need for your freelance work, but the tools you do have, such as your laptop, are essential to keeping up with your business obligations. If equipment such as your work computer is stolen or destroyed in a fire, you need to be able to replace it right away and get back up to speed on fulfilling your contractual duties. Business contents coverage gives you insurance compensation to replace items such as electronics, furniture and more that you need to do your job. Note that if you own a business property, you need commercial property insurance to give you financial protection if the building itself is damaged or destroyed.   

Additional Coverages for Freelance Insurance 

• Business Interruption Insurance  
• Commercial Auto Insurance  
• Legal Expenses Coverage  

Is It Mandatory to Have Freelance Insurance in Ontario? 

You are not legally required to have freelance insurance in Ontario. In fact, that’s the case with most types of business insurance, except commercial auto insurance. But just because the government doesn’t require you to have freelance insurance coverage, that doesn’t mean you can safely and effectively operate your business without it. 

The cost of dealing with major unexpected expenses such as lawsuits, settlements, property destruction, and more are often much higher than an individual can comfortably pay out of pocket, which makes freelance insurance a crucial addition to any successful freelancer business insurance plan. But it’s not just about dealing with expenses should a lawsuit arise or a disaster occur. Before they sign a contract to work with you, many potential clients will want to see a certificate of insurance that lists the right types of freelance insurance coverage. If you’re unable to provide proof of insurance, you could be forced to walk away from lucrative client contracts and leave them for your competitors to snap up. You also need insurance coverage to lease a commercial space, if that’s part of your business plan.  

Does My Home Insurance Cover My Freelance Business? 

As a freelancer, you may choose to run your business from your home, and that makes plenty of sense if it’s just you and a computer. But it’s essential to note that even though your home is likely already covered by home insurance, that coverage does not extend to your business equipment and activities.  

When it comes to freelance insurance in particular, it’s also critical to understand that while your home insurance has some personal liability coverage included, it cannot provide you with the necessary professional liability insurance you need to avoid the astronomical costs associated with defending yourself in court against liability allegations. You will need separate freelance liability insurance policies for professional liability coverage as well as commercial general liability coverage.  

How Do Insurance Companies Determine the Cost of Freelance Insurance? 

When an insurance company reviews your request for a quote on freelance insurance, they look at a wide range of factors to determine your level of risk exposure and calculate a premium cost at which they are willing and able to extend coverage. Those factors can include:  

• Your career field or industry  
• The services you offer  
• Your experience level  
• Your insurance claims history  
• Your location  
• Your annual and projected revenue  
• Your business equipment  

When you speak to a Broker at Morison Insurance, give us as much information as you can about how you operate your freelance career so we’re able to find the right types of coverage for you with the right insurance provider. 

Who Can I Speak With About Freelance Insurance in Ontario? 

Suppose you are embarking on a freelance career or are already a freelancer and want to ensure you have the right freelance insurance in Ontario. In that case, the first step is to speak with a licensed Insurance Broker at Morison Insurance. Give us a call at 1-800-463-8074 to find out more about freelance insurance coverage options and get started on getting some quotes on the best types of coverage to protect you against financial loss related to unexpected expenses.