Featuring Q&A with Tommy Hodgson of Eggar Forrester Creative Insurance.
As a freelancer you might wonder if you need insurance, or whether that could just be overkill for say an office-based Motion Graphics Designer… what could possibly go wrong on a one-day booking adding some simple After Effects to a piece of branded content?
Although at times it may seem like you do not have much to worry about in your work, unfortunately no matter how experienced you are there is always the possibility for problems to come up. Insurance can offer protection against mistakes on a project which would cause your client loss of income, or if a client claims your work does not match their expectations.
Insurance can cover compensation costs and provide you (the freelancer) with a team of solicitors and legal experts to fight your case. In all these circumstances insurance is there to protect your business and income. It can also cover the cost of damage to your own equipment and hardware.
To arm you with more information about the insurance available to freelancers, we put together a Q&A with Tommy Hodgson, Director of Eggar Forrester Creative – an insurance broker dedicated to finding bespoke cover for creative professionals.
YC: Is it important for a freelancer to have insurance?
Tommy: There is always the possibility that an unforeseen event could put your livelihood at risk so insurance is as important for a freelancer as it is for a small/medium/large business
YC: What does insurance typically cover, are there different kinds of cover that a freelancer can choose between?
Tommy: There are many different covers available but the majority are split in to 2 categories: 1) Cover for damage to your property (equipment, contents, buildings) and 2) Liability cover (you make a mistake or breach a contract and are found legally liable or you injure a third party and are found to be at fault). We can also extend your cover to include things like cyber insurance (you get hacked and suffer loss of income as a result), personal accident cover (this gives you a pay out if you get injured or ill) and travel insurance.
YC: Is there anything that the insurance will not cover?
Tommy: A standard insurance package for a freelancer would not include any cover for business interruption as a result of an infectious disease such as Covid-19
YC: What does the process of setting up insurance involve? What kind of questions will a freelancer be asked?
Tommy: You’ll need to answer a series of questions in order to receive a quote for your insurance. Questions will include things like – What kind of work do you do? What is your annual turnover? What is your single largest project? What is the total value of all of your contents/equipment?
YC: Will the cost of the insurance be different for different types of freelancers?
Tommy: The cost will depend on the type of work you’re doing and the scale of your operation. If you’re operating in remote, hazardous locations or you do a lot of US work where the cost of litigation is very high you will pay more than if your work is UK-based and low risk.
YC: How long will a freelancer be covered, and is it normally a monthly or annual payment?
Tommy: Normally insurance is arranged on a 12 month basis. You can then choose to pay in full or in monthly instalments.
YC: What happens when a freelancer makes an insurance claim?
Tommy: You would contact your broker straight away and they would take you through the process.
YC: Are there any providers who specialise in freelance insurance?
Tommy: We at Eggar Forrester Creative work with freelancers in the creative space. We have access to a large number of insurers and it’s down to us to find the most appropriate cover for our clients.
At Yellow Cat we know that every freelancer is different. Everyone’s day to day work involves different factors which can affect your business, so it is important to evaluate your own unique situation and consider if it is worth protecting yourself from risks to your livelihood. If you do decide to get insurance cover, there are different packages available to you so you can create a bespoke plan that works for you.
If you have any further questions about insuring yourself as a freelancer, or to request a bespoke quote, contact Eggar Forrester Creative on 0207 382 7710 or email them directly on email@example.com