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Do I need indemnity insurance as a freelance consultant?

(4 Posts)
Merguez Fri 26-Apr-13 18:03:52

Just set up as a freelance consultant working from home to provide copywriting services. Been sent a contract from my first client (yay) - a big firm - and there is a standard clause there about 'agrees to fully indemnify xxx against all loss damage etc...'

So, do I need indemnity insurance? Self-employed and don't employ anyone else but i suppose I need protection against being sued if a client loses money as result of work I've done wrong?

Anyone got any experience of this who can advise me please.

WinnieFosterTether Fri 26-Apr-13 19:53:52

If they've specified it in the contract then you either need to renegotiate that clause or get indemnity insurance. A lot of freelance copywriters I know have a clause in their contract that negates the need for indemnity insurance.

However, I do know some who work with that large firms that insist upon it. It's not overly expensive (just remember to factor it into your fees!) and will cover you if, for example, you put the wrong telephone number on a brochure or in an advert.

Check what kind of level they expect you to have, and also time restrictions/limitations. I know of cases where one person in a big firm has signed off work but then a few months later someone else has looked at it and noticed an issue. In that case you would need to ensure your insurance ran for a period of time after the contract had ended too.

Merguez Sat 27-Apr-13 12:34:20

Thanks Winnie. They didn't specify insurance in the contract, so I'm amending the liability part to the value of the contract, so its not unlimited.

WilsonFrickett Mon 29-Apr-13 12:47:54

I don't have it, but am tendering for a govt contract and part of their ts and cs is you have to have it.

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