freelance insurance

[Jonathan]

What (if any) insurance do freelancers tend to use. Im in the process of start-up and have been advised all kinds of insurance but is it really worth it for this type of work? Im in the UK. Thanks

[mattclinch]

as a UK freelancer you should definitely take out Professional Indemnity Insurance (PI) and possibly Income Protection Insurance.

if you are out shooting with tripods you will also need to look at Public Liability Insurance (PL) incase anyone trips on your tripod and sues you. Also if you have expensive kit that you are taking out of the house/studio I would insure that too.

 

good article here - http://www.f2freelancephotographer.com/business_insurance.html

[Scott Schroeder]

You many want to look into forming an LC or limited company. Across the pond in the US, we call it an LLC or limited liability company. What I have found is that being an LLC, more of the larger companies are willing to work with me as I am an actual company with a tax ID. It's easier and safer for them to pay me through that channel rather than pay me as an individual.

 

The LLC protects you in the same way as the PI or PL insurance, but you'd have to do some research to see if you'd need those previously mentioned on top of the LLC. The biggest thing with an LLC is that, if, you are sued your company is sued and not you. Your personal assets are exempt and only your investment in the company is at risk. Though, there are restrictions in how the LLC must operate in terms of investments, bank accounts, and so on.

 

However, all of this costs money and you are just starting out. Realistically, I'd say operate at risk without all of this until you start to get yourself established. Most freelancers, in CG, I know carry no sort of insurance. It's just too expensive and causes your rates to increase which can lead to less work. Hopefully, you won't be knocking any old ladies down delivering your final works.

 

If you are really concerned about this, I would advise you to sit with a business attorney and get it all sorted out.