"I've been in business for 10 years and have never had a problem."
"I haven't experienced that in the past, so I won't experience it in the future" is flawed logic.
Maybe you've been driving for years but have never had an accident, yet you wouldn't drive without a seat belt. It's ignorant to apply this logic to anything.
Life is unpredictable. Business is unpredictable. You never know what kind of clients you'll work with, the dynamic between you both, or what external factors can cause problems.
For the sake of £14 a month, it's better to have a safety net just in case.
"I use a contract so I don't need insurance"
Contracts don't alleviate you of liability.
They're useful for laying the foundation of what duties are expected of both parties, but insurance steps into action when those duties come into question.
With every situation we've seen there's been a contract in place. It doesn't stop a client from making a claim. In fact, it can even be used against you. For example, if the contract is accidentally breached.
You should have a contract. And you should have insurance.
"There's not much liability associated with my work"
This one I understand because the benefits of business insurance are buried. It can be challenging to find examples of freelancers utilising their business insurance in your industry or niche.
It also doesn't help that insurers use examples tailored to high-risk professions (solicitors, accountants etc).
However, professional indemnity is useful to any freelancer who provides a service to clients.
It doesn't matter if you're a designer, developer or internet marketer, all of the situations we've dealt with are applicable to any freelancer.
- Late delivery of a project leading to an unhappy client
- Scope creep leading to unpaid invoices
- Terminating a project early leading to a strained client relationship
All of the freelancers these situations affected have one thing in common; they provide a service to a client.
Do you see where I'm going with this?
If you provide a service or offer advice to clients, there's a liability and it's your professional duty to prepare for that.