Do I need liability insurance as a freelance graphic designer?

Question

I also have a home studio and my business is classified as a sole proprietorship. I also take on assignments with other advertising or design agencies and work on-site. Is liability insurance something I should get and why?

Answer 1

I am a sole proprietor.  I don't pay for liability insurance.  Too expensive and i am figuring that i am "self-insured" since i put a little money away on each transaction. /

Answer 2

Setting up an LLC is a good idea... but they're not what they used to be.  Before you could just kill an LLC with little or no personal liability, now the owner does have somep personal liability.

I would recommend looking into 2 types of policies:

1.  General Liability:  If you are going onto their location, you'll want the property damage coverage thats in there.

2.  Professional Liability (E&O):  You're going to want this coverage in case you come across a lawsuit where someone is claiming libel, slander, copyright infringement.  Plus it will cover you for any mistake you make during the creation of their product.

You're welcome.

Answer 3

probably not.  I would suggest setting your company up as a LLC or an S-corporation.  Essentially, this limits your liability to the value of the company.  You will also save money on taxes.  It is simple to do, just look up your Secretary of State website and download the application.  It should only cost about $100.