As a freelancer, every expense feels optional — especially insurance you have never needed. But a single liability claim can cost more than years of premiums combined.
What general liability covers
General liability (GL) covers third-party bodily injury, property damage, and personal/advertising injury arising from your work. If a client trips at your home office or you accidentally damage their equipment, GL responds.
Do you actually need it?
You probably need it if
- Clients require proof of insurance to sign contracts
- You visit client sites or they visit you
- Your work could damage client property
- You handle expensive equipment or data
You may not need it if
You work purely remotely, never meet clients in person, and your work carries no physical risk. Even then, professional liability (errors and omissions) may matter more than general liability.
GL vs. professional liability
These are different. General liability covers physical harm and property damage. Professional liability (E&O) covers claims that your work was negligent, late, or caused financial loss. Many freelancers need E&O more than GL.
| Claim | General Liability | Professional Liability |
|---|---|---|
| Client trips in your office | Yes | No |
| You miss a deadline, client loses money | No | Yes |
| You damage client equipment | Yes | No |
| Your advice causes a loss | No | Yes |
Ask what kind of claim could realistically hit you. Physical risk points to GL; mistakes-and-advice risk points to professional liability.
The cost-benefit math
For most freelancers, GL runs $300 to $800 a year. Weigh that against the cost of defending even a frivolous lawsuit — which can run tens of thousands in legal fees alone, win or lose.
Use our business liability calculator to estimate what coverage would cost based on your revenue and industry.