Does the company I contract for cover me under their insurance?

No. That is the entire definition of independent contractor status. The company's GL, E&O, and workers comp cover their employees — not you. If you damage something or get injured while working, their carrier will deny a claim on your behalf. You need your own coverage.

How much does contractor insurance cost per year?

Annual cost depends on industry: IT/tech contractors: $350–$900/year (GL only). Marketing/creative contractors: $400–$1,100/year (GL + E&O). Trade contractors (electricians, HVAC): $550–$1,800/year (GL, higher risk). Construction contractors: $800–$3,000+/year depending on project types and payroll.

Can I get insurance that covers multiple clients?

Yes. A standard business insurance policy covers your work for any client under the policy — you do not get a separate policy per client. The policy follows you and your business activities, not individual contracts. Just make sure each client's certificate lists them as a certificate holder or additional insured if they require it.

Do I need workers comp as an independent contractor with no employees?

Probably not for yourself, unless your state or client specifically requires it. Some states require sole-prop contractors in certain trades to carry WC even for themselves. And some GCs and corporate clients will require WC proof regardless of employee count. If you hire subcontractors yourself, you may be responsible for their WC coverage.

Does the company I contract for cover me under their insurance?

No. That is the entire definition of independent contractor status. The company's GL, E&O, and workers comp cover their employees — not you. If you damage something or get injured while working, their carrier will deny a claim on your behalf. You need your own coverage.

How much does contractor insurance cost per year?

Annual cost depends on industry: IT/tech contractors: $350–$900/year (GL only). Marketing/creative contractors: $400–$1,100/year (GL + E&O). Trade contractors (electricians, HVAC): $550–$1,800/year (GL, higher risk). Construction contractors: $800–$3,000+/year depending on project types and payroll.

Can I get insurance that covers multiple clients?

Yes. A standard business insurance policy covers your work for any client under the policy — you do not get a separate policy per client. The policy follows you and your business activities, not individual contracts. Just make sure each client's certificate lists them as a certificate holder or additional insured if they require it.

Do I need workers comp as an independent contractor with no employees?

Probably not for yourself, unless your state or client specifically requires it. Some states require sole-prop contractors in certain trades to carry WC even for themselves. And some GCs and corporate clients will require WC proof regardless of employee count. If you hire subcontractors yourself, you may be responsible for their WC coverage.

Business Structure

Business Insurance for Independent Contractors

As an independent contractor, you have no employer safety net. Every client relationship is a direct liability. Here is what coverage you need to work with confidence.

$29–$99/ monthTrade contractors (electricians, plumbers, HVAC) typically pay $45–$120/month for GL. Professional service contractors (IT, marketing, design) pay $29–$79/month. Adding E&O: add $30–$100/month.

Get My Free Quote →

Backed by Munich Re. 750,000+ businesses insured. Get your certificate of insurance instantly.

🏆A+ AM Best Rated (Munich Re)🏢750,000+ Businesses Insured⚡Get a Quote in 10 Minutes📄Instant Certificate of Insurance🕐24/7 Online Policy Management

Coverage Types for Independent Contractors

These are the key insurance policies most relevant to your business type — ranked by importance.

🛡️

General Liability

Required

Most client contracts and 1099 agreements require proof of GL before work begins. Covers you if you damage client property, injure someone at a job site, or cause third-party bodily harm.

📋

Professional Liability (E&O)

Highly Recommended

Covers claims that your services, advice, or work product caused financial losses to a client. Especially critical for IT contractors, consultants, designers, writers, and advisors.

🔧

Tools & Equipment Coverage

Recommended

Covers your owned tools and equipment against theft, damage, and loss. Personal property policies do not cover tools used for income. Inland marine or a BOP is required.

💻

Cyber Liability

Recommended

If you handle client data, access their systems, or deliver digital work products, cyber liability protects against breach claims and data loss events.

🩺

Disability Income Insurance

Recommended

If you are sick or injured and cannot work, there is no employer paying you. Disability income replaces a portion of your earnings during recovery. Not a business policy but critical for contractors.

Get Your Instant Quote

100% online. No broker call required. Get covered and download your Certificate of Insurance in under 15 minutes.

See My Quote →

Backed by Munich Re. 750,000+ businesses insured. Get your certificate of insurance instantly.

🏆A+ AM Best Rated (Munich Re)🏢750,000+ Businesses Insured⚡Get a Quote in 10 Minutes📄Instant Certificate of Insurance🕐24/7 Online Policy Management

What You Need to Know

→As a 1099 contractor, you are a business — not an employee. Zero coverage comes from the client company.
→Most Fortune 500 companies and government agencies require $1M+ GL proof before allowing contractor access.
→Your homeowners or renters insurance does NOT cover work-related liability or professional errors.
→A Certificate of Insurance (COI) is often required before a contract is signed. Get insured first, then negotiate.
→Tax deductible: 100% of premiums are deductible as a business expense.

What Does It Cost?

$29–$99per month

Trade contractors (electricians, plumbers, HVAC) typically pay $45–$120/month for GL. Professional service contractors (IT, marketing, design) pay $29–$79/month. Adding E&O: add $30–$100/month.

15 min

To get covered online

Broker fees

Instant

Certificate of insurance

Frequently Asked Questions

At minimum: General Liability ($1M per occurrence is the standard). If you provide professional services, advice, or creative work: also Professional Liability (E&O). If you have expensive tools: a tools & equipment floater. If you handle client data: Cyber Liability. Build your package around what your contracts actually require and what risks you face.

Explore More

→Sole Proprietors →LLCs →Subcontractors →the Self-Employed →All Business Insurance Guides

Ready to Get Covered?

Join thousands of businesses that get insured online in minutes. No paperwork. No broker required. COI instant download.

Get My Free Quote →

🏆A+ AM Best Rated (Munich Re)🏢750,000+ Businesses Insured⚡Get a Quote in 10 Minutes📄Instant Certificate of Insurance🕐24/7 Online Policy Management