Whether you’re an entrepreneur, freelancer, or self-employed, it’s always smart to have professional liability insurance (also known as E&O insurance). Professional liability insurance protects you from being held responsible for any damages that result from your actions on the job. For example, if you accidentally break something while performing your service, you might be held liable for it if you don’t have E&O insurance. This can cost hundreds of thousands of dollars, and could even put your business at risk in some cases.
Identity Theft
As a freelancer, you are responsible for your taxes, healthcare, and retirement planning. But did you know that you are also responsible for your professional liability insurance?
Many freelancers don't realize that they need this type of insurance until it's too late. Here are three reasons why you need professional liability insurance
Regulatory Penalties
If you happen to make a mistake while working on a project, you could be facing some serious regulatory penalties. Depending on the severity of the offense, you could be fined or even lose your license.
Professional liability insurance can help protect you from these penalties by covering the cost of any damages or legal fees.
Non-Criminal Suits
The first reason you need professional liability insurance is to protect yourself from non-criminal suits. This type of insurance will cover you if someone sues you for negligence or any damages that they incur because of your work.
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