Professional Insurance
Understanding professional indemnity insurance, public liability, and protecting your business.
Key points
- Professional indemnity insurance protects against claims of negligence
- Many clients require proof of insurance before working with you
- Insurance is relatively affordable and provides peace of mind
- Review your coverage annually as your business changes
What the Code says
The Code of Practice encourages copywriters to “maintain appropriate professional insurance where relevant to your work.”
Insurance protects you, your business, and your clients. For many corporate clients, it’s a requirement before they’ll work with you.
Types of insurance
Several types of insurance are relevant to copywriters:
Professional indemnity (PI)
The most important for copywriters. Covers claims that your professional advice or services caused financial loss. For example:
- Copy that leads to a regulatory breach
- Misleading content that causes client losses
- Breach of confidentiality
- Copyright infringement claims
Public liability
Covers injury to people or damage to property. Less relevant for home-based copywriters but useful if you visit client premises or use co-working spaces.
Employers’ liability
Required by law if you employ anyone, even casually. Not needed for solo freelancers.
Contents/equipment
Covers your business equipment. Check if your home insurance covers business use.
Client requirements
Many corporate clients and agencies require £1m or £2m of PI cover before they’ll add you to their supplier list. Check requirements early in the relationship.
Do you need insurance?
Insurance isn’t legally required for most freelance copywriters, but it’s often advisable:
Reasons to get insured:
- Corporate clients often require it
- It protects you from potentially large claims
- It demonstrates professionalism
- It provides peace of mind
Consider your risk level:
- What types of clients do you work with?
- What sectors? (Regulated industries carry more risk)
- What kind of work? (Marketing claims vs. internal comms)
- How large are your projects?
The cost-benefit:
PI insurance for copywriters is relatively affordable – often £200-500 per year for £1m cover. Against the potential cost of a claim, this is modest.
Getting covered
How to get appropriate insurance:
Finding a provider:
- Specialist freelancer insurers (Hiscox, PolicyBee, Dinghy)
- Professional association schemes (check ProCopywriters)
- Insurance brokers
What to tell them:
- Your work type and specialisms
- Your typical client types and sectors
- Your annual turnover
- Any previous claims
Choosing cover level:
- £1m is standard minimum for most client requirements
- Consider £2m if working with larger corporates
- Higher cover doesn’t cost proportionally more
What to check in your policy
Not all policies are equal. Check:
Cover scope:
- Does it cover all the work types you do?
- Are there exclusions for certain sectors?
- Does it cover copyright/IP claims?
Geographic scope:
- Does it cover work for overseas clients?
- Important if you work internationally
Run-off cover:
- What happens if you stop freelancing?
- Claims can be made years after work was done
Excess:
- How much do you pay towards a claim?
- Lower excess = higher premium
Claims-made basis
Most PI insurance is “claims-made” – it covers claims made during the policy period, not work done during that period. Maintain continuous cover.
If something goes wrong
If you face a potential claim:
Don’t:
- Admit liability
- Try to settle it yourself
- Ignore it and hope it goes away
Do:
- Contact your insurer immediately
- Provide all relevant documentation
- Follow their instructions
- Keep records of all communications
This is what you pay for – let the insurance company handle it.
Summary
Professional insurance is a sensible investment for freelance copywriters. It protects you from potentially significant claims, satisfies client requirements, and demonstrates professional practice.
Review your coverage annually to ensure it still matches your business. As you take on larger clients or more complex work, your insurance needs may change.