What kind of insurance would I need to be a freelance supplier of digital solutions?
What are digital solutions?
Digital solutions are about digitalising the legacy processes within an existing business. There are many reasons that a business may require the services of a freelance supplier of digital solutions or IT Consultant. Bringing in external expertise can be a smart strategic step to overhaul the legacy systems of a business and bring it into a new age.
A business may be motivated by many benefits of applying digital solutions.
- Leading the Industry. The first industry players to adopt digital solutions in different parts of the business can leverage a first mover advantage.
- Improving Customer Experience. How do customers interact with the business at the moment and how do they want to interact with the business in future?
- Cost-cutting. Digital Solutions help to modernise businesses and introduce key efficiencies.
- Keeping Up. Certain Digital Processes may be a requirement to be able to continue to function in your industry as the rest of the industry charges ahead with new technologies.
These are just some of many reasons to engage a digital solutions specialist.
Does a digital solutions freelancer need insurance?
Imagine that you have recommended and helped implement a suite of digital products to a business but, unfortunately, a data breach occurs in the following months. It may be that the solution you recommended and implemented did not have adequate security as required by the business. You may be held liable for the costs of rectifying the data breach, including reputational damage, communications, compensation and more. You can imagine the costs involved would be crippling for a freelancer. Certain types of insurance may be able to cover these costs. A full assessment of the risks in your digital solutions business by an insurance broker who specialises in insurance for the technology sector will identify key areas where insurance coverage can assist.
Unique risks for sole traders and freelancers
Did you know that freelancers and sole traders, operating under their own name, are particularly at risk of being held personally accountable and liable for damages and other expenses? This is by nature of their business structure and is different to a regular business structure which is constructed of a separate entity. In a standard business structure the company affords some protections to individuals within the company, which is not the case for sole traders.
Many sole traders will pursue a comprehensive suite of insurance coverage as recommended by an insurance broker with expertise in insurance coverage for sole traders and freelancers. This may be their preference to reduce their personal exposure to risk. Additionally, many businesses will require freelancers to have specific types and levels of insurance before they will engage the sole trader. This is certainly the case for government contracts, but is common across all industries and sectors.
What types of insurance does a digital solutions freelancer need?
An insurance broker with experience in digital solutions businesses and the unique needs of freelancers and sole traders is best placed to provide you with advice on the types of insurance you should consider. Some types of insurance that may be applicable include:
- Public Liability Insurance - a mandatory requirement that covers damage to third party property or injuries that arise from your services
- Professional Indemnity Insurance - to cover you for negligence, errors and omissions in your professional advice, such as the example described above
- Cyber Insurance - including coverage for cybercrime and other technological disruptions
- Income Protection Insurance
- Life Insurance
- Total and Permanent Disability (TPD) Insurance
- Third-party personal injury insurance
- Workers' Compensation Insurance
Cyber insurance is an insurance cover that would be worth exploring in greater depth with your insurance broker, as it can be used to cover many risks arising from the implementation of digital solutions. You can read more about cyber insurance on our Cyber Insurance page.
How can I get appropriate coverage for my digital solutions business?
Reach out to an insurance broker today to learn more about insurance coverage for freelance suppliers of digital solutions. Your insurance broker will ask questions to seek to understand your business. They will take a thorough look at what you do day to day and be able to make appropriate recommendations. An insurance broker can help design an insurance coverage portfolio that suits the unique needs of your business. You can go to sleep at night knowing that your personal liability is covered and be freed up to spend your time and energy on creating amazing, game changing digital solutions for your clients.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by ADVISR.