Can a Solo Freelancer Get Professional Liability (E&O) Insurance?

Solo freelancers can often buy Professional Liability (E&O) when a client contract asks for it, since working alone is usually not a reason for an insurer to say no.

What does a client's insurance requirement mean for a solo freelancer?

Professional Liability, also called E&O (Errors & Omissions), can cover claims that a mistake in your work or advice cost a client money, subject to the policy terms. It can pay for legal defense and settlements, up to the limit. A contract clause may look like this:

• Per claim: the most the policy pays for one claim.
• Aggregate: the most the policy pays for all claims in one policy year.
• Covering the services: your policy should describe the work in the contract.
• Certificate of insurance: a one-page document that shows you have coverage and its main terms. It does not change the policy.

Who asks a solo freelancer for Professional Liability, and why?

• Larger companies and agencies. Their vendor rules often ask every provider for coverage, however small.
• Your client's client. If you work for an agency, it may have to pass its own requirement down to you.
• Legal or procurement teams. Some will not approve a contract without a certificate of insurance.

If you work through a staffing firm or are paid on a 1099 form, not as an employee, see Professional Liability for independent contractors.

Which Professional Liability form does a solo freelancer need?

Many solo consultants, coaches, designers and marketers buy Miscellaneous Professional Liability, a general form for advice and service work.

Freelance developers and IT consultants usually buy Technology E&O, often paired with Cyber (coverage for data breaches). Freelance writers and other media work may use a media liability form. Lawyers, health providers, architects, engineers and real estate agents usually buy forms made for their field. See Technology E&O vs Miscellaneous E&O.

Professional Liability is almost always claims-made. That means the claim must be made against you and reported to the insurer while the policy is active. It also must come from work done on or after the retroactive date, the earliest work date the policy covers.

On a first policy, that date is often the day coverage starts, though some insurers offer an earlier date if you have no known problems. So buy before client work begins if you can. Renewing without a gap usually keeps it. If you cancel, a later claim is usually covered only with an extended reporting period (a "tail," extra time to report claims). You usually must ask for a tail when the policy ends, within a short window.

What will underwriters ask a solo freelancer for?

Underwriters (the insurer's decision makers) usually ask for:

• A plain description of your services
• Your revenue and your largest client's share
• Your training, licenses and years in this work
• Whether you use written contracts
• Past claims, or anything that could become one
• Whether you use subcontractors

List every service you offer, even small side work. Insurers usually cover only services named on your policy. If you list "marketing consulting" but also build websites, a website claim may not be covered.

What affects the cost of Professional Liability for a solo freelancer?

• Your type of work and the harm a mistake could cause
• Your revenue and project size
• The limit you buy and your retention, the amount you pay on a claim before the policy pays
• Your experience and claims history
• Whether defense costs are paid inside the limit (legal fees reduce what is left for a settlement, which is common)

A $1M limit is a common ask for freelancers. A $2M limit gives more room if one claim runs large and usually costs more, so buy the limit your contract names. See $1M Professional Liability and $2M Professional Liability.

Frequently asked questions

Do I need an LLC before I can buy Professional Liability as a freelancer?

No, usually not, because many insurers cover sole proprietors. If you form an LLC later, the named insured (the person or business the policy protects) should match the name on your contracts. Morrow can request quotes under the new name. Ask to keep your retroactive date and prior acts coverage (coverage for earlier work), where possible.

Can my client be added as additional insured on my Professional Liability?

Usually not, but it depends on the insurer. An additional insured is someone else, such as your client, added to your policy so it may protect them too. Professional Liability mainly protects you from client claims, so this is not standard. Some insurers allow it when a contract requires it, usually only for liability arising from your services. It varies by policy form, so tell Morrow before you buy.

Can I get Professional Liability as a new freelancer with no clients yet?

In many cases, yes. With no client history, underwriters often look at your training, past work as an employee and whether you use a written contract. Buying before your first project usually starts your retroactive date early.

Does General Liability cover my professional mistakes as a freelancer?

Usually not. General Liability (the basic business policy for injury to others and damage to their property) is meant for those risks and often does not cover financial loss from your work.

This article is general information, not legal advice or a coverage determination. Coverage depends on the actual policy wording, carrier underwriting and your contract terms.