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Your Guide To Independent Contractors Insurance

4-minute read

Chris Bousquet

Chris Bousquet

23 May 2022

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Being your own boss has its perks. You get to set your own hours. Pursue the work you love. Pass on the work you don’t. Hire the people you want. And control all business decisions.

But here’s something to keep in mind. No matter how much control you have over your own business, the things you often have little control over are accidents and honest mistakes.

They happen. That’s why we’re here with the answers to commonly asked questions regarding independent contractors insurance requirements, including:

Do you need it? What kind do you need? What happens if you don’t have it? How much does it cost? And more.

By the end of this article, you should have a better understanding of what types of insurance policies exist for independent contractors and be armed with info to help you make decisions that could protect your business.

Ready to be the boss on independent contractors insurance?

Let’s go!

Does an Independent Contractor Need Insurance?

If you’re self-employed, you may be wondering if you even need independent contractors insurance.

Here’s the deal: No matter what kind of business you run or how experienced you are at running it, accidents can happen.

A landscaper may inadvertently kick a rock up while power-edging a garden bed and shatter a client’s expensive glass storm door. A photographer might take props to a shoot that someone trips over and blows out their ACL. An employee for your cleaning service might accidentally spray themself in the eye with a cleaning agent and be forced to miss work for several days.

The point is: no business is free of risk. Whether you’re a plumber, electrician, or carpenter working in a demanding industry, or a painter, florist, or interior designer working in more benign conditions, if something can go wrong, it probably will.

That’s why business insurance is vital. Without it, the consequences could prove costly.

What Happens if an Independent Contractor Doesn’t Have Insurance?

It’s like being a trapeze artist who performs without a net. Be perfect all the time and you’ll probably be OK. Have a bad day and you’d probably wish you had a safety net.

The same applies to independent contractors and insurance coverage. The truth is that liability claims can be costly — in more ways than one. A big claim could crush the business you worked so long and hard to establish.

Without proper insurance, you may need to pay potential claims against your business with your own money.

Protecting your interests with the right insurance is important.

What Types of Insurance Does an Independent Contractor Need?

The type of business insurance you need depends on the type of business you own. Let me break it down for you:

Types of insurance for independent contractors:

General liability. Provides coverage against costs associated with third-party accidents, property damage, and bodily injury.

Professional liability. Provides coverage if your customer sues your business for mistakes in providing your services.

Workers compensation. Protects you and your business if your employees get hurt, injured, or sick while working on the job.

Cyber liability. Protects your business from the costs of claims involving stolen customer data, cyberattacks, breaches, and fraud.

Depending on what kind of business you own and operate, you also might want to look into inland marine insurance. It provides coverage for tools that are damaged or stolen while in transport or on a job site.

If you use your laptop or mobile phone to run your business — or have an inventory of materials and supplies needed to run it — business personal property insurance is also something to consider. It typically covers the equipment, furniture, fixtures, and inventory that you own, use, or rent inside your workspace.

How Much Does Independent Contractor Insurance Cost?

We know that the budget can be tight when running your own business. But since independent contractor insurance can be crucial to your protection, let's take a look at some of the factors that may determine how much your insurance coverage will cost:

  • The specific services you provide
  • Your risk exposure
  • How many employees you have
  • Your location
  • Tools and equipment

Although that might sound like a lot to consider, you don’t have to do it alone. The first step is finding an experienced, knowledgeable insurance provider.

That’s where we come in. At Simply Business, we’ve made finding and buying independent contractor insurance simple and easy.

It usually takes just under 10 minutes online, and we can take it from there. Or if you want to talk to a helpful human (one of our licensed insurance agents), you can give us a call at 844-654-7272.

We work with leading insurers to find coverage for your business at an affordable price. And we make it easy to understand what you’re getting and how much it costs.

Get Insured in Under 10 Minutes

Get an affordable & customized policy in just minutes. So you can get back to what matters: Your business.

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Cyber Requirements for Getting Independent Contractors Insurance.

Worried about cybersecurity threats to your business? You’re not alone.

According to a U.S. Small Business Administration survey, 88% of small business owners felt their business was vulnerable to a cyberattack.

The threat is real. What makes it worse is that cybercriminals know that most small businesses likely don’t invest in cybersecurity.

Even if you do, cracks in firewalls can be found. Imagine waking up one morning to learn that the system you set up for your business got hacked. Just like that, your customers’ personal payment information, including credit card data, is stolen.

The financial implications could be huge.

That’s why it’s becoming increasingly important to consider cyber insurance. It helps protect your small business from the high cost of claims associated with stolen customer data, cyberattacks, breaches, and fraud.

You’re the Boss

The benefits of owning your own business can be great. But the risks can be, too. Still, you wouldn’t change it for the world.

You have a business you love, one that you worked hard to establish. The freedom to work when you want. Perhaps the good fortune of having great employees helping you run it. And best of all, you get to be the boss.

And as the boss, one of the best decisions you can make is protecting your hard work so you can enjoy the ride. Business insurance makes it so you can stay in the saddle and do just that.

Chris Bousquet

Written by

Chris Bousquet

I went to college to be an accountant and graduated with a degree in creative writing. Words won out over numbers, but barely. All credit goes to my parents. Had they talked about anything other than banking at the dinner table growing up—and had they never bribed me with Pop-Tarts to read books, play with my Matchbox cars and quietly exercise my imagination—who knows where my left and right brain would be today.

Chris writes on a number of topics such as legal resources, small business taxes, and social media marketing.

This content is for general, informational purposes only and is not intended to provide legal, tax, accounting, or financial advice. Please obtain expert advice from industry specific professionals who may better understand your business’s needs. Read our full disclaimer

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