In the not so distant past, freelancers were hired as part of a strategy to help control payroll costs. They often lived within close proximity of their employer and usually worked on a project basis.
Today, outsourcing to global freelancers has become the norm, but for very different reasons. Businesses need to fill in workforce gaps without compromising the quality skills they need - about 70% of U.S. businesses are now hiring national and international freelancers.
This recent data, taken from the Global Online Employment Report by Elance, showed that hiring for cost savings, is down 45% and businesses are hiring freelancers to fill skill gaps instead. The Elance study also showed that:
- 89% of businesses try to gain a competitive edge by hiring freelancers
- Half of businesses are hiring freelancers for long-term commitments
- Freelancers most in demand are data scientists, mobile app/software developers and online security professionals
No matter the quality or type of freelancer, every employer should protect against the various potential risks of legal actions relating to hiring them.
An errors and omissions or employment practices liability policy could provide proper protection and cover the high defense costs encountered when allegations arise.
Our insurance specialists build custom professional liability solutions, tailored to meet the needs of your business. We can help provide guidance or answer your coverage questions.
Contact us today at 201-847-9175 or email info@axisins.com.
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Axis Insurance Services, LLC is not affiliated with Axis Insurance Company or its affiliates in any way.
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