Professional Indemnity Insurance
Professional indemnity insurance, often referred to as PII, is probably the most important insurance policy that any professional freelance can have.
Why? Because the potential risks are so high.
If you make any kind of mistake in your professional capacity - and it could be something you did do or something you forgot to do - then you could end up liable for the full amount of any financial loss incurred by the client.
And do bear that 'full amount' in mind. Your liability won't just be limited to the amount you would have been paid. It could also include all the consequential losses the client may have suffered - the cost of any remedial work; any financial penalties they may have incurred if your mistake caused them to miss a contractual deadline; any liability claim if a third part was injured; reputational damage.
Add the whole lot up and the total could easily be more than enough to ruin any plans you had for the future. All the hard work you've put in to build your business gone straight down the drain.
You should also remember that if a claim for negligence is upheld against you, you could also be liable for all the legal bills too.
If you're thinking "well, I don't make mistakes so it won't happen to me", then think again. Everyone makes mistakes now and again. It's human nature. If the pressure is on to meet a deadline, corners can easily get cut, errors that you would never normally make can easily creep in, checks can easily get overlooked.
Even if it only ever happens occasionally, when the stakes are as high as they are for freelance professionals, it really makes no sense to operate without professional indemnity insurance. Particularly these days when you can arrange your cover as easily and as cheaply as you can right here on this site.
If you're still not convinced, remember that more and more organisations now insist on their suppliers having the full protection of professional indemnity cover. In other words, it's increasingly becoming a case of 'no PII, no work'.