If you want to set your freelancing business apart from the competition, it’s essential to prove that your business has legitimacy and credibility. Legitimacy and credibility builds trust with new clients more quickly and effectively. For current clients, it provides them with a better reason to refer you to new leads.
There are many ways to build legitimacy and credibility into your business’ framework. Marketing tactics, awards, past clients, and more are all building blocks to business legitimacy. Another block is having the proper insurance policies. The appropriate insurance shows that you’re serious about your business, that it’s not a part-time hobby, and that you’re protected in case of an unfortunate mishap.
This article reviews three ways an insurance policy builds business legitimacy and credibility. Ultimately good insurance policies:
- Act as collateral for your business’ marketing and branding;
- Communicate to others that you’ve spotted your business’ risks and took steps to mitigate them; and,
- Build trust with clients when it’s time to sign the contract.
An Insurance Policy is Collateral for Marketing and Branding
People commonly incorporate their business for branding purposes. The opportunity to add an “Inc.” at the end of a business name emphasizes a brand’s legitimacy. It’s the same with purchasing insurance. The fact that you’re insured adds a sense of legitimacy to your brand.
Most people with a computer and internet connection can easily set up a website for their “business”. But how many of these people take the next step to insure themselves and their clients to plan for risks?
There are several ways to communicate that you’re insured. You might not want to blast it on a billboard, but it’s perfect as a subtle piece of marketing collateral. It’s great for the “about me” page of your website, on pitch decks sent to leads, or even at the end of an email signature. The insurance company you choose may even have graphics ready for you to tell clients and leads that you’re professionally insured!
Let Others Know You Understand Your Business’ Risks
Having the right insurance policies shows your clients and leads that you know how to run your freelance practice. It shows you’ve thought through your practice risks and have plans on where to go if the worst-case scenario hits.
Having the proper insurance also reduces risks for your clients. In some situations, a person receiving the lawsuit may declare bankruptcy, so that the person suing gets no money and still has to deal with legal fees.
Your client isn’t going to want this situation. Telling your clients and leads that you’re covered by professional liability and/or general liability insurance provides them peace of mind when working with you. If something goes wrong, they can always access your insurance.
What’s more, it’s important to commercial clients whether you’re insured. Larger companies want to mitigate any risks affiliated with hiring a freelancer. If they see that you’re insured, it gives clients one less item to worry about when contacting you for a project. Whether you have an insurance policy can determine if that client chooses you or another freelancer.
If you change roles and put yourself in the client’s shoes; maybe you’re not hiring a freelancer but a cleaning company. You want to ensure that the cleaning company you hire is insured. If they leave a hole in your wall or ruin your flooring, the fact that they have an insurance policy signifies that you can claim compensation for any mistakes or issues that arise. It’s no different when you’re the one providing freelance services to a client.
Reducing these risks ultimately lets others perceive your business as more legitimate. There’s a sense that if things go wrong, you won’t just disappear because you have professional liability and/or general liability insurance to cover any losses.
Ensure Your Business Contracts Look Legitimate
Although we think of contracts as the nitty-gritty of being a freelancer, a well-written contract is vital to your brand. A proper contract shows that you’re prepared and that this is what the client can expect from your work. It prevents ambiguities, which reduces discrepancies between what you think and what the client thinks is the agreement. A contract is also the place to lay out your insurance policies’ details so that your clients understand how you’re covered.
Your contract should detail your insurance policies and what the client could claim if an issue occurs to ensure your business has legitimacy. Whether that’s slipping on an icy sidewalk outside of your office or delayed work due to a cyber-attack, your contract outlines whether your insurance policies can cover these or similar incidents. This is important information to clients because it helps them determine where their risks are or aren’t.
Without the proper insurance policies, you’re essentially missing a section of your contract. This can look unprofessional and ultimately reduce how clients and leads perceive the legitimacy of your business.
Just imagine. You get to the final stages of closing a deal. Your client asks how much professional liability coverage you have. If you say that you’re not insured, it not only make your freelancing business look less legitimate but also may ruin the whole deal.
Insurance is an important part of building business legitimacy. This perception of legitimacy can allow clients and leads to trust you more easily, which is never a bad thing. Policies such a general liability or professional liability insurance are also fantastic collateral to boost your brand. It also communicates that you understand business risks, and a policy ensures you can present a complete and professional contract for your client to sign on the dotted line.
Business Insurance for Freelancers. Made Easy.
APOLLO is a leading digital insurance provider for independent contractors and freelance professionals. Our online platform makes it easy to quickly access the insurance you need and get covered in minutes.
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