Is there something a freelancer can do to reduce the risk of legal action being taken against them and their business?
The answer is yes. As a freelancer, you can drastically reduce the risk of a legal action by following the due process and understanding your limits.
The gig economy offers a freelancer the opportunity to work from anywhere in the world, choose the kind of project they want to be involved in and also decide how much they wish to be paid for their professional service.
According to statistics, there are over 2 million and 57 million freelancers in the UK and the United States respectively. These people need to understand their privileges and what pitfalls to avoid so that they don’t get sued.
With 2.18 million temporary workers in Canada, the need for yoga freelancers to protect themselves continues to increase.
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Before we discuss various ways to reduce the risk of a legal action as a freelancer, let’s take a look at the common reasons why freelancers get sued.
Common Reasons Why Freelancers Get Sued
- You can get sued by your client over security breaches.
- Legal action can be taken against you as a freelancer over errors or inability to complete a project at the agreed date.
- A freelancer can get sued in the UK, in the United States, Canada and other parts of the world for intellectual property theft or misuse.
- Violating the terms of service you had with your client can get you sued.
- Refusal to make a refund to an unsatisfied client can call for a legal action.
Having understood some of the key reasons freelancers get sued, let’s now focus on how to reduce the risk of a legal action as a freelancer.
How to Reduce the Risk of a Legal Action as a Freelancer
It will be unfair to freelancers to assume that they can’t make mistakes or encounter an accident while trying to perfect their client’s work.
Mistakes and accidents can happen. But what matters most is this, are you doing anything to protect yourself and your business?
Do you have freelancer insurance to protect yourself and your business? What type of freelancer insurance policy do you currently have or intend to get?
To help you stay on top of your game as a freelancer, here are basic steps you can take to protect yourself:
- Always make sure your client’s expectations are clear and agreed in a contract, especially if you design or build for them
- Be honest about what can be achieved, breaking down into set deliverables where possible
- Record all contracts and sign-offs in writing and log them safely
- Keep work areas as tidy as possible, completing Risk Assessments of all activities and processes where possible
- Keep clients and the public well away from dangerous areas when you’re working
The 3 Basic Types of Freelancer Insurance Policies You WIll Need
There are basically 3 common freelancer insurance policies you will need to fully protect yourself against accidents, mistakes and lawsuits.
1. Professional indemnity insurance for freelancers
Professional indemnity insurance protects you if a client accuses you of professional negligence. This type of business insurance undertakes the cost of defending a compensation claim relating to professional negligence.
2. Public liability insurance for freelancers
Public liability insurance protects you if defending claims for accidental damage or injury sustained in connection with your work.
3. Employer’s liability insurance for freelancers
Employer’s liability insurance for freelancers protects you if any of your employees are injured or become ill due to work, and failure to have it can result in a fine of up to £2,500 for each day uninsured.
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To get the best freelancer insurance quote from a reliable insurer, you will need to compare freelance insurance quotes.