What is independent contractor insurance?
What insurance does an independent contractor need?
General liability insurance for independent contractors
Professional liability insurance for independent contractors
- Mistakes or oversights in performing your service.
- Breach of contract.
- Professional negligence.
- Failure to deliver a service on time.
What other kinds of insurance do independent contractors 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
- Weigh your risks. Think about the industry-specific risks you face. What types of lawsuits, accidents or disasters might impact you?
- Decide what coverage you need. Your insurance coverage should protect you from the risks you identified above.
- 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.
- Compare providers. Get insurance quotes from multiple providers before choosing one. Compare premium costs as well as policy limits, coverage details and provider reviews.
- Buy your policies. After you choose a policy, make sure you know how to make payments and file claims if necessary.
Best insurance companies for independent contractors
- For quick coverage: Next Insurance lets you upload some basic information about your business, get a quote and make a purchase online within a few minutes. Next also publishes some general information about pricing, so you can get a sense of how much your coverage might cost. If you purchase a policy with Next, you’ll get an electronic certificate of insurance that you can share via email or text with anyone who asks to see it.
- For easy-to-customize policies: Chubb allows users to get quotes and purchase basic coverage, like general and professional liability insurance, online. Policies are customizable, and Chubb has received above-average marks for customer service in J.D. Power’s annual customer satisfaction surveys.
- For more personalized help: If your insurance needs are complex or you want hands-on support from an agent, consider calling your local State Farm office. The brokerage offers insurance packages for a variety of industries, and it allows customers to add professional liability coverage to a business owner’s policy. State Farm has been highly rated for customer satisfaction, too.