Ah, the life of a freelancer. Waking up whenever you want, staying in your PJs all day and binge-watching Netflix while getting some work done. But is freelancing as easy and straightforward as most people think?

Having a lax schedule and being your own boss does come with some risks, and one of those risks is the potential to be subject of a lawsuit. Say a site you've built for a client crashes or a client gets injured in your home. Those who sell through home-parties can also be held liable for injuries that happen in someone else's home or be brought into a product liability lawsuit when the goods they've sold malfunction and cause bodily harm. Even if you've done nothing "wrong," costs of defense lawyers often break the freelancer's bank.

When determining what kind of liability insurance you need, consider the following questions:

Is there a possibility of bodily injury to other or property damage while you're working? Keep in mind the unexpected. Someone could trip over a cord you're using or you could accidently bump into a $25,000 14th century vase while on your way to an interview. Can my work cause financial harm? The website crashing. A mistake on an audit. Bad advice. Creating or publishing something that is incorrect. All of these things and more can cause your clients to lose money. That is what Professional Liability (Errors & Omissions Liability) insurance is for. Do I have any other liability exposures? Having company vehicles, employees, possession of customer's property, and serving alcohol are some examples where you may need additional liability coverage. Is there coverage through my homeowner's or renter's insurance policy? Most homeowner's or renter's policies will extend some liability coverage for business work you do while at home but, like your business property, it typically doesn't cover work you do outside the home without an endorsement. For more extensive coverage, sometimes a business owner's policy is best.

Purchasing the right insurance coverage now might make the difference between your business' success tomorrow.

It should be noted that none of these optinos include business property or health insurance. When putting together your business' insurance with a qualified agent, you can discuss how to fulfill all your freelancing needs so you can continue being your own boss without risk.