Independent Contractor Business Insurance

Sometimes independent contractors, general contractors, and subcontractors (like electricians, handymen, paving contractors, and painters) are required to carry their own insurance. When you carry insurance, your clients gain peace of mind knowing that your business can handle a lawsuit, so any issues won't escalate to affect them. You can also ask clients to include you as an additional insured on their policy.

You may need insurance to fulfill the terms of a contract. Clients might require your management consulting, education consulting, or event planning business to carry E&O insurance to protect from claims of negligence or mistakes, or workers' compensation insurance to avoid potential legal costs or medical bills resulting from workplace injuries. Your landlord may also require a certificate of insurance as proof of general liability insurance or commercial property insurance.

You may need insurance to comply with the law. Vehicles registered to businesses must be covered by commercial auto insurance. This policy covers the cost of property damage, medical bills, and lawsuits if you get into a car accident. If you drive your own car for work (e.g., a carpenter's or janitor's van), you'll want hired and non-owned auto insurance instead. This policy is less expensive and pays for your liability in using a personal, leased, or rented vehicle for work.

Independent contractors of all types (e.g., HVAC contractors, landscape designers, marketing consultants, etc.) can save money on commercial insurance coverage with two packages common across several industries.

A BOP combines commercial property insurance with a general liability policy.

A general liability insurance policy is the coverage that most small business owners purchase first. It covers basic third-party (non-employee) liability claims, including bodily injury and property damage, such as a floor installer damaging a homeowner's wall while carrying in floor boards. The policy is especially beneficial for independent contractors who invite the public into an office or storefront, handle delicate client equipment, or have an active social media presence.

Commercial property insurance is critical for protecting your work equipment and your building, if you own it. This policy is valuable even if you’re renting an office space, as your landlord’s policy won’t cover your company’s belongings.

Tech E&O combines E&O and cyber liability insurance.

Technology E&O insurance is crucial for independent contractors in the tech industry and professional services, as it covers the cost of lawsuits over the quality of your work, including any security recommendations. It bundles errors and omissions insurance with both forms of cyber liability insurance:

First-party cyber liability insurance helps independent contractors recover from data breaches and cyberattacks. It covers the cost of credit monitoring services, crisis management, and cybersecurity incident investigations.

Thirty-party cyber liability insurance protects independent contractors if a client sues you for failing to prevent a data breach or cyberattack at their business. If you find yourself in this kind of dispute, it covers legal defense costs, settlements, and court-ordered judgments.

Chat with an insurance agent to find out more about bundles and discounts.

With TechInsurance, independent contractors, from computer repair techs to tree service professionals and nurses or caregivers, can compare quotes from top-rated insurance providers with one easy application. Get free quotes for affordable business insurance policies that match your unique risks.