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Independent Contractor Insurance
Business insurance for freelancers, subcontractors, and 1099 workers
This coverage provided and serviced by affiliated and third-party insurers.. Read more
Personalized liability insurance for independent contractors
As a self-employed independent contractor, you build business relationships based on trust, responsibility, and a commitment to meeting or exceeding expectations. Having coverage helps your clients feel confident if something unexpected happens.
At Progressive Commercial, we can help tailor a plan that protects both you and your customers. Start a quote online or speak with a business insurance expert to get coverage that's right for you.
What is independent contractor insurance?
Independent contractor insurance is a type of business insurance policy designed to protect self-employed professionals from incidents such as injuries, property damage, negligence, and other issues that could lead to lawsuits or financial losses.
Do independent contractors need insurance?
Federal law doesn't mandate independent contractor liability insurance, but it's a good idea to have a policy because it can safeguard you financially if things go wrong.
For example, let's say you work as a consultant for a large company and make an error that costs them time and money. Your mistake could result in a lawsuit. With the right policy in place, you'd be protected from paying legal fees and settlements out of pocket.
Business insurance can also help you win jobs, since many corporations and government agencies require independent contractors to carry it.
Who needs independent contractor insurance?
Professions and trades that typically need insurance as an independent contractor include:
Temporary employees who need independent contractors insurance
Another type of independent contractor is someone who works for a company but receives a 1099 instead of a salary or other W-2 wages. Here are some common examples:
- Freelancers
- Consultants
- Gig workers
- Subcontractors
- 1099 workers
Types of insurance for independent contractors
Choosing the right insurance is essential to protecting your customers, along with your assets and reputation. Key coverages for independent contractors include:
General liability (GL)
Coverage for injuries and damage to others
General liability (GL)
Coverage for injuries and damage to others
General liability insurance for independent contractors can protect you from third-party bodily injury and property damage claims. It also guards against claims of slander, libel, and copyright infringement. Keep in mind that many clients won't sign a contract with you unless you can show proof that you carry liability protection.
Learn about the benefits of general liability and the cost of GL insurance.
Example: A large firm hires you as a contractor to create a marketing campaign, and you find a photo on the internet that works perfectly. Unfortunately, the photographer sues you and the client because you didn't get permission to use their copyrighted work. Your GL coverage will pay for legal fees and settlement costs.
Business owners policy (BOP)
A flexible package for liability and property insurance
Business owners policy (BOP)
A flexible package for liability and property insurance
A BOP combines liability and commercial property insurance into one easy-to-manage policy. It safeguards your business space, workshop, or storage facility and its contents. That includes the building structure and business property, such as equipment, tools, computers, and furniture.
A BOP also includes business interruption coverage, which can pay for lost revenue if a covered event temporarily disrupts your operations.
Example: The office you rent catches fire, and your work computer and other supplies are damaged. Commercial property can pay to replace your items and cover lost income while you get back on track.
Professional liability
Liability protection for advice and services
Professional liability
Liability protection for advice and services
Professional liability insurance, also called errors and omissions (E&O), protects you from legal claims if the services and advice you provide don't meet the client's expectations, you make a mistake, or you don't complete work on the agreed-upon date.
Example: On a temporary assignment, you're part of a team that makes a major error that causes the company a financial loss. Even though you weren't responsible for the mistake, the company sues you. Professional liability coverage can pay your legal fees, even if the claim against you is baseless.
Commercial auto
Protection for a work-related vehicle
Commercial auto
Protection for a work-related vehicle
Most independent contractors use vehicles to meet clients and travel to job sites. With commercial auto insurance from Progressive Commercial, America's #1 commercial auto insurer,* you're covered for accidents that cause injuries or damage to others.
To protect your passengers and vehicle, you can add other commercial auto coverages, such as comprehensive and collision. Learn more about the cost of commercial auto coverage and review the regulations in your state.
Example: While delivering materials for a client project, you get into a fender bender with your personal car. A personal auto policy wouldn't cover this work-related accident, but a commercial auto policy can pay for harm caused to the other vehicle and driver.
Tools and equipment coverage
Coverage for materials that are moveable
Tools and equipment coverage
Coverage for materials that are moveable
If you store tools and equipment at a job site or in your work truck, and they get lost, damaged, or stolen, tools and equipment insurance can help cover the cost to repair or replace them. You can add this coverage with an inland marine endorsement to your general liability policy or BOP.
Example: You're working on a large plumbing project as a subcontractor, and your supplies are stolen from the job site. Your inland marine coverage will pay to replace your items.
Workers' compensation
Protect yourself from work injuries
Workers' compensation
Protect yourself from work injuries
Even if you fly solo, you should consider workers' comp insurance. In fact, some clients may not hire you if you can't show proof of having this coverage. And if you need to bring on another subcontractor to stay on schedule, state workers' comp laws may require you to provide it.
Learn more about workers' comp for 1099 employees.
Example: While painting a building interior, you fall off a ladder and break your ankle. Your workers' comp policy can pay your medical bills and lost wages while you recover.
Get a COI from Progressive Commercial
Many clients and general contractors will ask to see a certificate of insurance (COI) as proof you have coverage before hiring you. If you need a COI, start a quote with Progressive Commercial today. Once your policy is in place, we can help you get one quickly and easily.
What does independent contractor insurance coverage cost?
The cost of business insurance for independent contractors depends on the type of work you do and other factors. Insurers will consider the following when evaluating your risk and calculating your rate:
- Type and size of business
- If you bring on employees
- Where your business is located
- Coverage types and limits
- Claims history
The easiest way to see how much independent contractor insurance will cost you is to get a customized quote online. If you need to insure a business vehicle, the cost of commercial auto insurance will also affect how much you pay.
Common questions about independent contractor insurance
Are there specific requirements for independent contractor insurance?
Some states require coverage based on your profession and business structure. If you work in a higher-risk profession, like construction, you may need both liability insurance and workers' comp. Contractual obligations can also factor into what type of coverage you need. An expert at Progressive Commercial can help you understand what insurance is necessary for your independent business.
If you already know what coverages you need, you can get the protection you're looking for with an online quote.
What types of insurance should I consider?
General liability is a foundational coverage that most independent contractors start with because it covers third-party injury and property damage. Professional liability can be helpful protection for those who provide advice and services, like plumbers or painters. If you drive a work vehicle and rent an office space, you should also consider commercial auto and commercial property insurance. Finally, workers' comp is valuable protection for independent contractors in case of workplace injury.
Can I change my coverage as my business grows?
Absolutely. At Progressive Commercial, we provide flexible, tailored insurance solutions to meet the evolving needs of your business. You can easily access your policy online to make updates and changes as needed.
Why choose Progressive Commercial
As an independent contractor, you want to strike the right balance between cost and coverage. Small businesses across America trust us to provide flexible, affordable, customized insurance options. Our experts can help you find a policy that offers protection for the type of work you do.
Start your quote today and get coverage tailored to your needs.
