Q: Is insurance required for offering services on Fiverr to avoid legal issues?

A: I would certainly form a business entity, either an S Corporation or a limited liability company. You should discuss this with your accountant and have a business attorney form the business entity. I would forward the Terms and Conditions to your insurance agent and get the proper coverage naming Fiverr as an additional insured.

A: You're asking a smart question, especially if you want to protect yourself as you start offering services online. Fiverr's Terms of Service are written broadly to cover many types of sellers, including those who might offer higher-risk services. While they do mention the need for liability insurance, it's not enforced platform-wide for low-risk work like animation, and many freelancers operate without it. That said, Fiverr may expect you to carry insurance if a client issue arises or if your work leads to a dispute involving loss or damages.

Including a legal disclaimer in your job listings can help set boundaries with clients and clarify what you're offering, but disclaimers alone won't protect you from legal liability if something goes wrong or a client decides to file a complaint. If you work as an individual, your personal assets could be exposed in the event of a legal claim. Operating under a business entity, like an LLC, and carrying general liability or professional liability insurance could help separate your personal finances from business risks.

Ultimately, having insurance is less about meeting Fiverr’s terms and more about protecting your peace of mind. If you're offering professional work—even creative services like animation—it's wise to consider what kind of risk you’re comfortable with. You're not required to get insurance to start, but if you grow your client base or take on larger projects, it’s a smart layer of protection to have. You’re thinking ahead, and that alone puts you in a strong position.