Do freelancers need business insurance? General liability vs E&O

This post is part of our business setup hub. It's for US freelancers and one-person businesses deciding whether to buy a policy, which one, and from whom. We quote two insurers that sell small policies online, Hiscox and NEXT (its site now says ERGO NEXT), using only figures from their own pages. Prices checked on October 23, 2026 on each company's site. A licensed agent can quote other carriers too.

General liability vs professional liability: what each covers

For most desk-based freelancers (writers, designers, developers, consultants), professional liability is the policy that matches the real risk. The client isn't likely to trip over your cable; they're more likely to say your deliverable was late or wrong and cost them revenue. General liability matters more if you work at client sites, run events or workshops, or have clients come to you.

Insurers sometimes bundle general liability with property coverage in a business owner's policy (BOP). Cyber insurance, which covers a data breach, is another separate policy. Health coverage is its own topic; the self-employed health insurance deduction post covers how premiums are deducted.

When a client asks for a certificate of insurance

The usual trigger isn't a lawsuit, it's a contract. A larger client's vendor form or master services agreement asks for proof of coverage before the first invoice is paid. What they want is a certificate of insurance (COI): a one-page summary from your insurer listing the policy type, limits and dates.

1. Read the insurance clause before you sign. Note the policy type (professional, general or both), the minimum limit per claim and in total, and whether the client wants to be named as an additional insured.
2. Compare it with what the project pays. A clause asking for a high limit on a small project is worth negotiating; some clients accept a lower limit if you ask.
3. Get a quote with those limits. Both Hiscox and NEXT quote online; NEXT's site lets you download a certificate online after you buy.
4. Send the COI with the signed contract and keep a copy with the client's paperwork. Renewals change the dates, so send the new one each year.

Insurance and contract terms work together. A limitation of liability clause caps what you could owe a client; insurance pays for the defense and damages within the policy limit. Many freelancers want both: the cap keeps the exposure close to the fee, and the policy pays if a claim comes anyway.

What it costs: Hiscox and NEXT

Starting prices are for the lowest-risk profiles with the smallest limits. Treat them as the floor. The Hiscox IT consultant example is nearly double its starting price, which is closer to what a developer or technical consultant should expect to see in a first quote.

Three-year cost by profile

Which to choose

Whoever you buy from, check that the insurer and agent are licensed in your state. Your state's insurance department keeps that record, and the NAIC list of state insurance departments links to each one. Read the policy's exclusions before you pay: a professional liability policy written for consultants may exclude some kinds of software or medical work.

Where SoloWOS fits

SoloWOS doesn't sell or compare insurance. Once you have a policy, state your coverage and limit in the terms of your proposals clients accept online, so a client's insurance question is answered before the contract stage, and keep the certificate with the signed contract.

This is general information, not insurance or legal advice. Policy wording decides what's covered. Ask a licensed agent about your situation.