What is business insurance? Do I need it?

Business insurance is, in a nutshell, business-related peace of mind. Think of it as protecting all the wheels, cogs, nuts and bolts of your livelihood.

It comes in all shapes and sizes and can specialise in a specific type of customer, like we do with freelancers. All businesses should be insured to some degree. If you offer advice or services to clients, you should consider professional indemnity.

The aim of professional indemnity is to offer financial compensation for a work-related loss. With professional indemnity, you're put back in the same financial position after a loss as you had enjoyed before the loss occurred.

What is professional indemnity? Should I be insured?

You’ve probably heard terms like ‘errors’ and ‘omissions’ when it comes to professional indemnity. All this is about is protecting you against any claims a client may make.

Any breaches to your ‘duty of care’ to a client such as careless mistakes in your work, mishandling of intellectual property or ill-informed advice could get you in a bind.

This insurance covers the costs of claims an unsatisfied client could make. If you provide a service to clients, handle data or offer advice, then yeah you should consider this cover.

I'm a freelancer. Can Jack insure me?

If you’re a web professional such as a web designer, developer, graphic designer, illustrator or consultant, yes we can! We’ve tailored our service and product to these unique few so that we can offer as personal a service as possible. If you’re not sure if we can help you, drop us a line and we’ll let you know.

Can Jack offer other forms of business insurance?

We can arrange professional indemnity insurance, public liability and contents insurance through our system. If there's another type of cover you're seeking, contact us and we'll add it to your quote if possible. We’re always working on ways to make business insurance better for freelancers so we’ll roll out new products to our system as we, and our customers, grow.

How much is insurance?

That's like asking a web designer or developer how much it would cost to create a website. It depends on various factors. You can expect to pay around £168 for £1,000,000 of professional indemnity. This is for 12 months of cover, which works out around £14 per month. When you buy insurance through Jack, you will be given the option to pay monthly or upfront.

I do design and development. Can I cover both activities under one policy?

We understand the web is a multidisciplinary industry, so we allow you to add two activities to be covered under one policy. For example, if you're a developer and consultant we'll insure both activities under the same policy.

Are you an insurer?

No, Jack is an Appointed Representative of Innovative Risk Ltd. While we're here to help you, we offer a non-advised service and won't make a recommendation.

Our role—along with our partners—is to help you with key information so that you can make an informed decision about your insurance.

Where does my money go?

Your premium is held in an Insurer Trust account. Premiums are held here until such time as they are remitted by Innovative Risk Ltd to your insurance company / you. This is operated in accordance with FCA regulations.

Who do you work for?

Jack works for you! We act as your agent in placing the insurance, and in the event of a claim.

We provide a customer journey tailored to freelancers, as well as key information so that you can make an informed decision about your insurance. We'll also provide you with relevant benefits that you won't find elsewhere.

Who pays any claims that occur?

It will depend on who we have arranged your insurance with. Your policy summary or policy document will notify you how to make a claim and who to contact. If in doubt, you can contact Jack directly.

We asked ourselves one important question

What do we want out of an insurance provider? Jack is the answer.

How is my insurance policy calculated?

Policies can cost far less than you might think. Your policy depends on a few factors, but we like to keep things simple;

  • Your annual turnover
  • Nature of your business operation
  • Level of cover
  • Whether you’ve had claims in the past

Don’t be tempted to duck and dive around business insurance. If that claim comes knocking and you’re not covered correctly, you’ll wish you had got yourself protected.

Who is this 'Worry+Peace' you speak of?

Jack is a proud member of the Worry+Peace network, a trading style operated by Innovative Risk Ltd.

Worry+Peace has extended their regulatory permissions to Jack. As part of their team we're able to offer you a better experience when quoting or buying your insurance through Jack.

How do you earn money?

We earn a commission from the insurers we place your business with. You are entitled, at any time, to request information regarding any commission which we may have received as a result of placing your insurance business.

How do you work?

Jack works for you, arranging quotes and cover on your behalf. We help you buy and manage your insurance, offering you an experience that's tailored to freelancers.

I work with US clients. Will my international work be covered?

We can add international cover to your policy. This does mean the price of your premium will increase slightly. Once you get a quote, we'll contact you with your annual premium and you can let us know you work with international clients. We'll refer your quote to the underwriter to lift the jurisdictional limit.

Do you only insure UK businesses?

At the moment, yes. Although we'd love to expand further afield in the future, we're currently focused on the UK.

Am I legally required to have business insurance?

The only insurance that's legally required is employers' liability. This is required if you have people working for you or are a limited company with more than one Director where equity is equally split. However, it's good practice to be professionally insured even as a freelancer. Any individual who provides a service or gives advice to clients should consider professional indemnity insurance.

Is business insurance tax deductible?

It sure is. Business insurance is an expense like hiring an accountant, buying work equipment or paying for software that's used for business. Business insurance is required for business purposes, so it's a cost you can deduct from your profits before tax.

How does business insurance work?

In a nutshell, business insurance works like this:

  1. Provide your details to Jack when getting a quote
  2. Jack will arrange your business insurance and send you your policy documents
  3. When a client threatens to make a claim against you, involve your insurer immediately
  4. Document any communication, emails or proof to aid you with your claim
  5. If it's covered under your policy, your insurer will put you back in the same financial position after the claim as you'd enjoyed prior to the claim

What business insurance do I need?

Good question. This is a common question and precisely why we built our 'What Insurance Does A Freelancer Need?' tool.

Use our tool as a guide to highlight what insurance you should consider based on your work activities. If you're still unsure, contact us and we'll help.