Insurance for independent contractors is imperative for people who work outside of the traditional system of being employed by a single person or company. While being an independent contractor may seem to be liberating, it is important to remember that you also have to ensure that you have adequate protection on your own.

The type of insurance for independent contractors that you need to get is dependent on the particular type of work that you do for your clients. There are numerous types of independent contractors and they all need independent contractors insurance matching their specific risks and possible liabilities. Some of the professionals who need insurance for independent contractors include:

  • Repair persons
  • Carpenters, painters, plumbers and electricians
  • Carpet and general house cleaners
  • Independent construction contractors


The Types of Insurance For Independent Contractors

In deciding what type of insurance for independent contractors you should get, there are a number of considerations that you must keep in mind as you do the research.

  • Medical and disability – Being an independent contractor, it is unlikely that you are on a group insurance plan that covers any injuries you might suffer in the process of carrying out your business. That can leave you exposed and without any source of income if at any point you become ill or injured.
  • Errors and omissions – If you are a contractor that provides consulting and advice, whether as an accountant, financial planner, landscape architect or interior designer, you should be concerned about the liability risks that may arise due to losses a client may suffer as a result of the recommendations you made in the course of working for them.
  • Bodily injury and property damage – Contractors whose work involves heavy machinery and tools. Like plumbers, electricians and re-modelers, need to keep at the forefront of their minds that mishaps may occur in the course of performing their services and that these may lead to heavy financial liabilities. The possible mishaps could be as a result of defective machinery, compressed gas or the usage of power tools.


Finding the Right Insurance for Independent Contractors

Making sure that you sign up for the correct type of insurance for independent contractors will ensure that you remain protected from mishaps, lawsuits and third party damage that otherwise, could seriously damage your business. Usually, you would need a few different categories of coverage in order to achieve complete liability protection for you and your business.


General Liability

This type of insurance for independent contractors usually forms the basis of your liability protection. It will provide two categories of protection;

  • Property damage – This provides you with protection if you or one of the persons working for/with you causes damage to property that belongs t other people in the course of performing your services. It will cover the building or property that you are working on or one belonging to a third party.
  • Bodily injury – With this, you get coverage if you or someone that is in your employ causes a third party injury or even death in the course of work. It will provide the cost of medical care for the person and may even cover your legal defense in the event that you are sued for damages.


Contractors liability

Contractors liability insurance for independent contractors will provide you with cover in the event of a contract dispute, say with an employer. It is not always included in general liability coverage so be sure to verify whether your insurer provides it.


Completed operations/product

This provides you with coverage when a project you have already completed has issues or causes damage. It may also extend to products that you sell or distribute so ensure you discuss that with your insurer.


Advertising personal injury

On getting this type of insurance for independent contractors, you will be assured of coverage from any liabilities arising from any loss suffered by another person due to a loss of reputation as a result of slander, libel or false advertising claims.

The main thing that runs through all these different policies is that they are very complex and will require you to spend a reasonable period of time studying the terms and conditions provided by your proposed insurer. You must also make sure that you ask questions on any area where you are confused and get a satisfactory answer before moving on. Doing this will make it so that you have a comprehensive awareness of what is and what is not covered by the insurance plan you eventually purchase.

It is also available that you work with an experienced agent. That will doubly ensure that you don’t have you don’t have any serious gaps in your coverage that could leave you exposed to expensive legal issues. Apart from insurance agents, getting in contact with other professionals trained in the field can help ensure that the insurance for independent contractors package you put together is the best you could possibly have gotten for yourself and your business. Getting lawyers and financial planners involved will definitely help you optimize the various options available in your bid to get solid insurance for independent contractors.


Contractors Liability Provides Insurance for independent Contractors

The business fo insurance can get really confusing. There are so many options and policies to choose from. You may be wondering which one is right for you. Do you need them all or just a few policies to get you your next job? Here at, we have insurance specialists that will help you choose the right insurance packages for your contracting needs. We also help you shop around for the best rates. You can save yourself the trouble and enter for a free same day quote.

At we provide service you can trust. For more information about insurance for independent contractors, please contact us.

Written by: John Brown
John has more than 25 years of experience in the insurance industry. He grew from a star insurance producer to owning one of the largest agencies in the country; he's a reference regarding contractor's insurance, commercial insurance, and builders' risk insurance.