As a Freelancer, Do I need to set up a business to apply for Professional Indemnity Insurance?

[tray64]

I'm a Freelance web developer who has a job coming up soon. I will be paid at the end of every month like a regular employee at the company who will contract me for 4 months. I have not registered a company anywhere, and mainly just do freelance work as myself.

However, I now want to buy some insurance in case something goes wrong(i.e. the client complains about a part of the website), but i'm unsure if I have to be a registered business, or can I apply anyway since I'm doing freelance work?

Thanks.

 

[ethical PR]

Anyone providing a service such as design, PR, photography etc should have professional indemnity insurance.

It doesn't matter whether you are registered as self employed or you have your own limited company.

It protects both yourself and your clients.

Do check on the HMRC website to make sure you qualify as being self employed for the purposes of this monthly contract.

 

[paulears]

As you are a 'freelancer' (a term often used but not actually meaning anything) you are already a business - a business of one for sole trader status, or more than one for partnerships. HMRC refer to you as being in business because you are trading - offering a service of some kind in return for payment. Insurance is up to you, it's not a legal requirement, and it's another business decision!

Is there a chance the firm you will be providing services to could suffer a loss due to your cocking up? I guess you could absolve yourself in any contract wording, but that might look pretty awful so PII may be sensible if you can afford it.

If you are working for enough clients in the year, then 4 months could be a reasonable contract period.