Independent Contractor Insurance: Best Companies, What Coverage You Need

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- General liability insurance: Necessary if you sell products or services to the general public. This coverage can protect your business if it’s sued for causing injury or property damage.
- Professional liability insurance: Necessary if you provide services directly to clients for a fee. This coverage can protect your business if it’s accused of faulty or incomplete work.
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Best insurance companies for independent contractors
Next Insurance
Thimble
USAA
Hiscox
What coverage do independent contractors need?
Dig deeper: General liability insurance
Professional liability insurance
- Mistakes or oversights in performing your service.
- Breach of contract.
- Professional negligence.
- Failure to deliver a service on time.
Other coverage types you might need
Type of insurance | Who needs it |
---|---|
Commercial property insurance covers property that is damaged in accidents, weather events or other hazards. | Independent contractors who rely heavily on particular materials or pieces of equipment to do their work, such as musicians, photographers or videographers. Also, if you rent office or retail space, your lease may require it. |
Commercial auto insurance covers your personal vehicle in the course of doing business, not just vehicles owned by the business. It can help you cover costs related to crashes, including property damage and medical expenses. | Independent contractors who own a business vehicle or who often use their personal car in the course of doing business, such as construction contractors or delivery drivers. |
Business interruption insurance covers the income you would have earned while your business was unable to operate due to an accident or disaster. | Independent contractors whose work would be significantly set back by a disaster, such as a pipe bursting and causing water damage to equipment that the business relies on. |
Cyber liability insurance covers damage resulting from data breaches or software hacks, including the costs of notifying customers and setting up credit monitoring. | Independent contractors, such as accountants, who handle sensitive information. |
How to get independent contractor insurance
- Figure out what coverage you need. Your insurance coverage should protect you from the risks your business faces based on what kinds of lawsuits, accidents or disasters might happen.
- See if you can add an endorsement to your homeowners policy. If you run a home-based business, you might be able to add an endorsement to your homeowners insurance policy to get some commercial coverage. Read your homeowners insurance policy carefully to see what coverage is available, and talk to your insurance provider if you have questions about whether the coverage is sufficient.
- Get quotes. Get business insurance quotes from multiple companies to compare costs and coverage before choosing a policy. You can usually get a quote in just a few minutes online.
- Buy your policies. After you choose a policy, make sure you know how to make payments and file claims if necessary.
- Add the person or business that hired you as an additional insured, if necessary. An additional insured endorsement extends your coverage to another party. Most commonly, you’ll be adding your client or your landlord. That way, if you’re sued on the job and the injured party also names your client in the lawsuit, your client won’t have to file an insurance claim of their own.
Do 1099 workers need insurance?
What does independent contractor insurance include?
Why do independent contractors need general liability insurance?
How does an independent contractor get general liability insurance?
Article sources
Methodology
Business insurance ratings methodology
NerdWallet’s business insurance ratings reward companies that offer small-business owners reliability and ease of use. Ratings are based on weighted averages of scores in several categories, including financial strength, customer complaint data, shopping experience and customer service. Learn more about how we rate small-business insurance companies.
These ratings are a guide, but insurance policy details and prices can vary widely from business to business and provider to provider. We encourage you to shop around and compare several insurance quotes.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
Insurer complaints methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2018-2021.
To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period.
Our star ratings consider ratios for both general liability insurance and commercial property insurance. When an insurer sells policies that are underwritten by several different insurance companies, we consider the NAIC complaint ratios of all the underwriters.