Insurance and the freelance editor

Do freelance editors need insurance?

It seems that government agencies, in particular, are increasingly requiring it of us. People are asked to sign contracts that stipulate anything from public liability cover of up to $10,000,000, to professional indemnity insurance, personal accident and illness insurance, loss of income insurance, and workers' compensation. For the one-person business based in a home office and with annual taxable income that is probably under $60,000 a year, these are stiff requirements.

Unfortunately, because ours is an uncommon profession, insurance companies put us into a ‘miscellaneous’ category, often with high-risk occupations. This means that even when a broker acts on an editor's behalf, the cost of basic cover for public liability and professional indemnity is likely to be about $2,500–$3,000 a year.

Recently I talked to a lawyer at the Arts Law Centre of Australia about these contractual requirements. He explained that while an organisation's ‘standard’ contract may stipulate insurance cover of various kinds, we are quite within our rights to negotiate. Indeed, I have found in some cases that if I can talk directly to the Contracts Manager (or whoever is responsible for contracts) it is possible to have contract clauses deleted or reworded once the responsible person understands the nature of the work I am undertaking. It may mean my volunteering to accept whatever risk is involved, but it can be done. Negotiating via a project manager can work well if they are savvy, but sometimes it can just make things more confusing and difficult. It's often hard to know which way to play it.

Of course if the job is going to bring a substantial amount of net income, it may be worthwhile complying, at least for the duration of the contract. The Arts Law Centre's website has some useful fact sheets about contracts and public liability insurance. The Centre also publishes The Arts Insurance Handbook: find more information on their website.

It's worth noting too that under some organisations' guidelines, competitive quotes and contracts are not required for jobs costing under $10,000.

Another option is to refuse to join in. It is always possible to turn work down if the conditions are unreasonable. It hurts, of course, but there is an argument for jacking up, and if enough of us were to do it, employers might have to reconsider.

A fourth option in a federal election year, when small businesses are clearly on politicians' minds, is to nag the relevant ministers. When enough of us wrote to Sensis to ask for an 'Editors and editing' category in the Yellow Pages we were successful. It is a fact that ‘standard’ contracts requiring us to have insurance similar to a building contractor's or a medical practitioner's are simply inappropriate for our kind of work. Perhaps if enough of us can make the point we could get some action. Relevant Australian government ministers are:

• Minister for Small Business and Tourism, The Hon Fran Bailey MP, PO Box 6022, House of Representatives Parliament House Canberra ACT 2600 or Fran.Bailey.MP@aph.gov.au
• Minister for Finance and Administration, Senator Nick Minchin, PO Box 2141 Kent Town SA 5071 or senator.minchin@aph.gov.au
• Minister for Revenue and Assistant Treasurer, The Hon Peter Dutton MP, PO Box 6022, House of Representatives, Parliament House, Canberra ACT 2600, or Peter.Dutton.MP@aph.gov.au
• The Shadow Minister for Shadow Minister for Service Economy, Small Business and Independent Contractors is Dr Craig Emerson MP, PO Box 6022, House of Representatives, Parliament House, Canberra ACT 2600 or use his online contact form.

Most states and territories have a minister responsible for small business who could also be approached.