The Importance of Professional Liability for It Freelancers



Today, we are joined by Phillip Gohl, an insurance specialist focusing on freelance professions, to answer key questions about professional indemnity insurance for freelancers. 

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What is professional liability insurance for freelancers and why is it so important?

Professional liability insurance for freelancers is a specific type of insurance policy tailored to the needs of independent professionals, regardless of their industry. It provides protection against financial consequences arising from damages that freelancers might cause to their clients or third parties. 

The necessity of this insurance stems from the fact that freelancers bear significant responsibility and often work with sensitive data and complex projects. In the event of errors or damages, substantial compensation claims can quickly become a threat to their existence. Hence, professional liability insurance is a necessary component of risk management for themselves. 


  • Professional indemnity insurances protect freelancers from financial consequences of professional errors or damages.

  • IT freelancers require specialized liability insurances due to unique industry risks.

  • Choosing the right insurance requires individual tailoring to specific risks and needs.

Why is a specialized IT liability insurance so crucial for freelancers in the IT industry?

To understand this, we need to look at the potential damages IT freelancers are exposed to. These range from programming errors and project delays to legal disputes and financial losses. A minor error in software or a delay in a project can have significant impacts. For example, if a freelancer overlooks a mistake in critical software leading to a system failure at a client’s site, this can result in substantial financial damages. A client could suffer not only loss of income but also initiate legal action for compensation. 

The resulting consequences for the freelancer can be devastating. Without adequate coverage, a freelancer might be forced to pay these financial damages out of pocket, leading to financial problems and damaging their reputation, thus deterring potential future clients. 

IT freelancers often work with a wide range of clients and requirements. How does this affect the choice of insurance?

This is an important aspect that significantly increases risk variability. When selecting IT liability insurance, it’s crucial that the policy offers broad coverage encompassing various types of damages and risks. A tailored package is often the best choice to meet individual requirements. 

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How do the costs for IT liability insurance vary, and what factors influence them?

The costs for IT liability insurance vary significantly and depend on several factors, including the desired coverage amount, the policy’s scope of services, and the freelancer’s personal risk situation. The more comprehensive the insurance coverage, the higher the premiums can be. 

For example, IT liability and legal protection insurance in our company for a freelancer with an annual fee turnover of 200,000€ costs 971.17€, including insurance tax. The liability coverage amount here is 3 million euros and 500,000 euros for specific financial losses. 

Can you give some tips on what freelancers should look for when choosing IT liability insurance?

ertainly. When selecting IT liability insurance, it’s crucial to pay attention to details, particularly regarding potential damages. Ensure that the policy covers financial losses, personal injuries, property damages, and consequential financial losses. 

A good insurance should also offer global coverage, as freelancers often work on international projects. Finally, the policy should also cover protection against legal infringements, as this is another potential risk. It’s important to seek individual advice to ensure that the insurance policy adequately covers the freelancer’s specific requirements and potential damages. 


The interview with Phillip Gohl, an experienced insurance expert for freelance professions, impressively highlights the importance of professional liability insurance for IT freelancers. He emphasizes that such insurances are indispensable for protecting against financial risks and potential damages that can arise in their professional activities. Especially in the IT industry, where errors can have far-reaching and costly consequences, a tailored liability insurance is crucial. The choice of suitable insurance should be aligned with the individual needs and specific risks of the freelancer. Phillip Gohl’s expertise underscores the necessity for freelancers to thoroughly inform themselves and get insured, ensuring both financial stability and professional security.

About Phillip

Phillip Gohl began his training as an insurance specialist at HDI-Gerling in 2011. After successfully completing his training in 2013, he joined the Martin Suckrow agency as a field service employee. His affinity lies particularly in working with freelancers and securing against biometric risks.

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Sören Elser ElevateX GmbH

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Sören Elser

Co-founder of ElevateX GmbH and your contact for the strategic use of freelancers.

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