As the job market is rapidly changing, and the gig economy has been one of the leading trends for several years now, there is an important question that must be asked and answered: what are the best insurance options for freelance editors and other individuals who are involved in this type of work environment?
One of the most efficient options for freelancers is indemnity insurance, or liability insurance. Of course, as a freelance editor, the last thing you want to think about is insurance, but you definitely need it to protect yourself and your work from a dynamic and unpredictable environment.
So, why should freelance editors obtain professional indemnity insurance? Is this just a fantastic marketing gimmick created by the insurance companies, or should you seriously consider purchasing it?
Professional Indemnity Insurance for Freelancers
Also known as professional liability insurance, this type of insurance protects you against the possible lawsuits of your current or former clients who claim that your editing, or any other service you’ve provided, was negligent due to a mistake or accidental omission.
If you were sued for this sort of claim, it would be brought in the civil court system—which means that you would face very high costs. If your case somehow reaches the criminal court, your expenses would be even higher! That’s when professional indemnity insurance comes in to protect you.
It is very similar to malpractice insurance that is intended for doctors. Basically, professional indemnity insurance covers you and limits your liability while you’re doing your job—whether it’s editing, or something completely different. It’s a common type of insurance for freelancers, especially for consultants and other independent contractors.
Indemnity Insurance
With indemnity insurance, one party of the agreement guarantees to compensate for the potential or actual losses that are sustained by another party. In the freelance world, indemnity insurance protects both professionals and business owners when they face any event that could lead to a potential lawsuit.
Other than damages or losses, indemnity can also refer to an exemption from a liability that was incurred from damages. It protects against claims that result from the possible negligence or failure to deliver a desired quality, which leads clients into a financial loss or legal entanglement. These clients can file a civil claim—and if a freelance editor has professional indemnity insurance, it will cover the litigation costs and any other damages that have been awarded by the court.
Indemnity insurance can cover more than just court costs, fees and settlements. The actual amount covered by insurance will vary from one agreement to another. In other words, the more you pay for your insurance, the higher the amount of coverage will be.
In addition to professional indemnity insurance, you should also take care of your health insurance, as you don’t want to face any high medical expenses for something that should just be a routine check-up or consultation with a specialist. After all, managing your finances efficiently is one of the capabilities that makes a successful freelancer.
Freelance Editors and Indemnity Insurance
Since writing is such a highly creative process, it’s your responsibility as an editor to ensure that a text meets high–quality standards before it is returned to your client. Of course, with greater responsibility comes greater risks. It’s possible that, for any number of reasons, your decision on a certain piece of content did not measure up to your client’s requirements.
With more companies basing their marketing strategies and growth on content, the importance of quality editing is greater than ever before. Writing is a complex creative activity, so it isn’t always easy to measure it or to agree on certain criteria, regardless of how long you’ve been collaborating with your client. This complex environment for editing quality content can cause a potential loss or damage for your client.
To protect yourself and your work, you should obtain professional indemnity insurance—the price for which is truly negligible when compared to potentially enormous litigation costs.
Other Types of Insurance for Freelancers
Professional indemnity insurance and health insurance are not the only insurances that a freelancer should consider. For example, if you’re a freelance editor working from the comfort of your home, you should also think about home insurance. Put simply, if your home is your office, you should secure yourself in the same way that you would secure your company space if you had it. The location from which you work should not matter—just think about all the equipment you have and what it would cost you if it were damaged or stolen.
There are many other types of insurance that any freelance editor would find worth considering:
- Contents Insurance for Freelancers
- Auto Insurance for Freelancers
- Business Interruption Insurance for Freelancers
- Disability Insurance for Freelancers
- Dental Insurance for Freelancers
- Life Insurance for Freelancers
- Supplemental Insurance for Freelancers
Final Thoughts
Thinking that you don’t need insurance just because you’re a freelancer could potentially lead to unnecessary trouble—and not thinking about the types of insurance that you as a freelance editor need can ultimately result in unbearable damage to your freelance career. To be an efficient editor, it is important to protect against and prepare for anything that might financially threaten you, your work or your career.
