If you work for yourself, you are the business. That’s a good thing—but it also means you need a safety net.
Insurance is part of that safety net. It helps protect your money when something unexpected happens. Most people don’t intend to make mistakes with insurance. They’re just…busy. Or they buy a policy fast and hope it’s enough!
Here are the top 5 insurance mistakes solo artists and business consultants make, and how to avoid them.
Mistake #1: Buying the cheapest policy just to “check the box”
Why it happens:
You need insurance quickly for a contract, an event, a studio space, or a client requirement. So you grab the lowest-cost option and move on.
What it can cost:
A cheap policy may not cover what you really do. Then you may have to pay out of pocket when there’s a problem.
How to avoid it:
Start by naming your real risks.
For artists, common risks are:
- Someone trips near your booth or display
- You damage a venue while setting up
- You are injured while creating your artwork
- Your gear is stolen or broken
- You aren’t able to work at all
For business consultants, common risks are:
- A client says your advice caused them a loss
- A client says you did not deliver what was promised
- A client disputes your work or results
Quick checklist:
- Do you sign contracts that require insurance?
- Do you work at events, pop-ups, or venues?
- Do you give advice, plans, or business guidance?
Mistake #2: Mixing personal and business coverage
Why it happens:
You work from home. You drive your own car. You use your personal laptop. It feels like personal insurance should cover it.
What it can cost:
Personal insurance does not always cover business use. If something happens while you are working, you may find out too late that you do not have the right coverage.
How to avoid it:
Look at the places where personal and business overlap:
- Car: driving to events, meetings, or client sites
- Home: storing business items at home
- Gear: taking equipment with you
Quick checklist:
- Do you drive for work each week?
- Do you keep business gear or inventory at home?
- Do you travel with equipment in your car?
Mistake #3: Not protecting equipment, supplies, and inventory
Why it happens:
Many people think one policy covers everything. It usually doesn’t.
What it can cost:
If your items are stolen, lost, or damaged, you may have to replace them yourself. That can slow your work and hurt your income.
Artists often need to protect things like:
- Tools and materials
- Displays, tents, tables, and lighting
- Finished pieces and inventory
Consultants often need to protect things like:
- Laptop, phone, tablet
- Camera and microphone (if you record)
- Work gear when traveling
How to avoid it:
Make a list of the items you need to earn money. Then make sure they are covered in the right way, especially if they travel.
Quick checklist:
- What are your top 5 most important work items?
- Do you take them to events, client sites, or coworking spaces?
- Would you be stuck if they were stolen tomorrow?
Mistake #4: Having coverage that does not match what you really do
Why it happens:
Your work changes over time. But your insurance stays the same.
What it can cost:
If your policy does not match your actual work, you may have gaps.
For artists, this can happen if you:
- Teach classes or workshops
- Do live demos
- Install art at homes or businesses
For business consultants, this can happen if you:
- Give business advice people rely on
- Create plans, strategy, or training
- Start doing “done-for-you” work
How to avoid it:
Write down what you do in simple words. Then make sure your insurance matches that list.
Quick checklist:
- What services do you offer today?
- Where do you work (home, studio, events, client sites)?
- Have you added anything new in the last year?
Mistake #5: Not updating insurance when your business grows
Why it happens:
You get busy. Your income goes up. You take on bigger jobs. You buy more equipment. But you forget to review your coverage.
What it can cost:
You may be underinsured. Or you may have the wrong type of coverage for your new work.
How to avoid it:
Review your insurance at least once a year. Also review it anytime you make a big change.
Quick checklist:
- Did you buy new gear or build up more inventory?
- Are you doing bigger events or bigger clients?
- Did you add new services?
- Are you signing new contracts?
Common situations I see (real-life examples)
These are examples many solo owners run into:
- An artist needs a certificate for an event, but the event needs special wording.
- An artist’s display gear breaks while traveling, and they learn it is not covered the way they thought.
- A consultant gives advice, and the client later blames the consultant for a bad outcome.
- Someone stores business items at home, but they don’t check if those items are covered.
- A business grows, but the insurance never gets updated to match it.
Want a fast way to check for gaps?
Try this simple review:
- Write down what you do and where you do it.
- List your top 5 work items (and what it would cost to replace them).
- Note how often you drive for work.
- Pull your policy summary or certificate.
- Check that it matches your work today (services, locations, and equipment).
If you want help, book an Insurance Review with me. You’ll leave with a clear idea of:
- What you have,
- What you may be missing,
- And what to fix next.