Liability for freelancers

Freelancers are responsible, or liable, if they cause any damages. Two of the most well-known liability insurances are business liability and professional indemnity. With these insurances, freelancers are covered if they cause damages to people, other people’s belongings, or financial damages due to a mistake.


It kind of speaks for itself – these insurances make sure freelancers are protected in case they’re held liable. If that happens, the insurer covers (part of) the sum they need to pay, or the costs for any legal assistance. The two most important liability insurances are business liability and professional indemnity.


Difference between business liability & professional indemnity.

What’s the difference between business liability and professional indemnity? Both are to do with liability, but cover a different type of damage. Business liability covers damages caused to people, or other people’s belongings. Sometimes that includes others’ belongings that a freelancer works with – that’s called ‘care, custody and control’ in insurance language. Professional indemnity however, covers damages caused by professional errors, which lead to financial damages. Examples would be when a freelancer gave the wrong advice, or made a mistake in their calculations, affecting their client negatively.


Being held liable can cost a lot, especially in the case of professional errors or damages to people’s health. Having liability insurance can make the difference between an inconvenient situation and big problems.


Mandatory or not.

Whether having these insurance is mandatory or not, depends on the situation. Having business liability insurance is not mandatory by law. Still, it’s very important that they do – many clients demand that freelancers have it sorted by stating it in their contracts. The costs of business liability insurance are usually not very high.

Professional indemnity is mandatory for some freelancers, while it’s of no use to other freelancers. It all depends on their profession. Especially for freelancers that take on advising roles, it’s important to be insured. Some sector associations demand that their members take out professional indemnity insurance, such as surgeons or lawyers.

Always a fitting solution for your freelancers.

Every freelancer and platform is different – that’s why Alicia has different insurance solutions. We make sure there’s always one that fits your platform.


Ultra-flexible insurance that truly fits freelancers. Fitting coverage that’s purchased online in less than 4 minutes and active the next day, with the ability to cancel daily.


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The tailor-made, all-in-one solution. Differentiate your platform by ensuring all your freelancers are automatically insured, or enable them to become Alicia members.