Independent Contractor Liability Insurance: Cost & Quotes From $11/mo

 

A quarter of the American workforce are independent contractors. With so many workers choosing to be independent, independent contractor liability insurance policy is also becoming more vital to a functioning workforce. 

Risks and liabilities for these contractors can be costly to remedy. This article examines liability insurance questions and concerns needed about the right policy.

What is Liability Insurance for Independent Contractors?

It protects from liabilities and legal costs when independent professionals are accused of committing actionable harm to clients and other third parties.

 It is also sometimes called 1099 liability insurance, which gets its name from the 1099 contractor Insurance forms that self-employed workers fill out during tax time. 

The US Internal Revenue Service IRS defines a 1099 contractor as someone who is a business owner or contractor that provides services to other businesses while being self-employed. Liability insurance for 1099 employees protects against the various unique risks that come with operating their business. 

Independent Contractor Liability Insurance Requirements

Independent contractor liability insurance is not legally required to do business in any US state. Despite this, there are situations in which you may be required to have a form of liability insurance when working for a client.

Independent contractor liability insurance requirements sometimes coincide with the obligations that self-employed workers might have in their contracts. 

General Liability Insurance for Independent Contractors

General liability insurance for individual contractors is an insurance contract where insurance companies will cover certain costs and risks that they might encounter through the course of work. General liability insurance for independent contractors covers business risks like customer injury, property damage, advertising injury, and lawsuit expenses.

 A few example situations where general liability coverage for independent contractors  can come in handy include:

  • You are a self-employed photographer whose customer slips and falls during a photoshoot and requires medical treatment. 
  • While working as a self-employed life coach, if a customer feels you misrepresented yourself, bring a legal suit of emotional distress from your advice. The legal fees could be covered under general liability coverage

General liability insurance is not required in California by law. The California Department of Insurance oversees insurance requirements for insurers and businesses. However, it pays to have a $1 million general liability coverage as protection.

 

Professional Liability Insurance for Independent Contractors

This independent contractor insurance coverage is a form of insurance that protects against lawsuits over the quality of the contractor’s professional work. This insurance is also known as independent contractor errors and omissions insurance because of what it covers.

It offer protection against claims for breach of contract, negligence, violation of confidentiality, missed deadlines, inaccurate advice, and violation of dealing. 

 

Public Liability Insurance for Independent Contractors 

Public liability insurance for independent contractors is an older form of general liability insurance. The two types of insurance are extremely similar, but public liability insurance focuses on protecting the independent contractor against claims from the general public. 

Public liability insurance also helps you cover a claimant’s medical treatment or reimburse a damaged property. This one doesn’t grant coverage against advertising and reputational injuries.

 

Cyber Liability Insurance for Independent Contractors

Cyber liability insurance for independent contractors and protects self-employed workers from costs resulting from a cyber-attack, data security breach, or other internet-related incidents.

 Freelancers are often easy targets for cyber attacks because they generally don’t have security protocols to protect their work devices. They often use personal devices for work, further increasing the risk of an attack.

  • A contract worker becomes the victim of a phishing scam that holds your data for ransom. This type of insurance policy can help the worker pay the ransom to get their valuable data back

Compare Cheap Independent Contractor Liability Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

 

Independent Contractor Liability Insurance Cost

The average independent contractor liability insurance cost is $34 per month or $408 per year for a $1 million general liability coverage underwritten for low-risk professions. The cost of your independent contractor insurance policy will change depending on the 

  • Types of coverage you need
  • Your business assets
  • Risk of your job
  • Claims history
  • Business history
  • Location

In connection, here’s a table showing the rates of the best companies for independent contractor liability insurance:

Cost per Month Cost per Year
NEXT $11 $132
Thimble $17 $204
Hiscox $22 $264
The Hartford $25 $300
Tivly $30 $360
CoverWallet $39 $468

 

Best Companies Offering Independent Contractor Liability Insurance 

NEXT 

NEXT is an accredited provider of liability insurance for independent contractors. They have an A- (excellent) rating from AM Best .They offer general liability and public liability insurance options for independent contractors.

Their online insurance system makes it easy for independent contractors to share insurance certificates for clients.

Average cost: $11 per month 

Our rating: 10/10

Pros

  • Best overall
  • Issues an online proof of insurance instantly
  • Fastest general liability insurance
  • Great customer service and reputation
  • Excellent rates
  • Outstanding value for money
  • Get a 10% discount if you buy two or more policies

Cons

  • Couldn’t find any

Rank and Review Insurance Companies

Help others make better decisions

Show more

 

CoverWallet 

CoverWallet act as a one-stop shop for all your policies, making it easy to add and change coverage when your needs change. CoverWallet has an A+ rating from the Better Business Bureau and connects tens of thousands of customers with perfect policies yearly. 

All your information is kept in a cloud-based computing database that tracks stats across the board, like pricing, features, customer service ratings, and reviews.

Average Cost: $39 per month 

Our rating: 10/10

Pros

  • Compare rates from top insurance carriers
  • Online experience is excellent
  • Lots of coverage options from their partner’s

Cons

  • Doesn’t write policies themselves

 

The Hartford 

Its independent contractor liability insurance is offered as general liability insurance by default. 

They boast a great financial track record. The Hartford has secured an A+ rating from AM Best and has served $11 billion in direct premiums in 2022. Their claims experience has received a No. 1 customer satisfaction rating from J.D. Power. 

Average cost: $25 per month

Our rating: 10/10

Pros

  • Easy online filing
  • One of the best claim tracking systems
  • Quick processing time

Cons

  • Some policies do not cover business in Alaska or Hawaii

 

Tivly

It offers a wide-ranging insurance platform for independent contractors who want to see all their options. This company has an A rating from the Better Business Bureau and is a fast-growing tech platform for insurance.

Average cost: $30 per month

Our rating: 10/10

Pros

  • Expert knowledge allows a worker to more easily get connected to the right policy
  • Over 200 providers
  • Compare quotes over the phone

Cons

  • Not an insurance carrier, just connects you to the right policy

Compare Cheap Independent Contractor Liability Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

 

Thimble 

Thimble offers one of the most flexible contractor insurance policies. They allow the customer to adjust when the coverage applies by the hour, day, week, or even month. 

They have policy coverage for over 300 professions, so you have a high likelihood of getting a good industry-focused policy. 

They have an A (excellent) rating from AM Best and an A+ BBB rating.

Average cost: $17 per month

Our rating: 10/10

Pros

  • Flexible coverage
  • Free online resources to get informed about your needs
  • Quickly issues an estimate of your rates

Cons

  • No phoneline for customer service

 

Hiscox 

Hiscox has an A- BBB rating and an impressive A+ rating from AM best. They offer business insurance for contractors and freelancers that include professional liability and general liability options. 

They also offer great resources online and regularly publish reports on essential topics like cyber readiness and small business diversity.

Average cost: $22 per month 

Our rating: 10/10

Pros

  • Lenient 14-day refund policy
  • Hiscox has lots of ways to save through bundled discounts
  • Tailored insurance contracts for your field

Cons

  • Need to contact an agent to buy a policy

 

Recent Reviews

Recent Posts


Additional Business Insurance posts