What Is It
“What is the best insurance for independent contractors?” “As an independent contractor, what insurance requirements do I have?” As a nonemployee, independent contractor or “freelancer”, you might be confused as to what type of insurance you need. Your typical commercial general liability policy obviously won’t cut it.
Having become increasingly prevalent in our economy nowadays, there is a rise in professionals who now class themselves as independent contractors. Independent contractors are comprised of a variety of different fields, including freelance writers, subcontractors, auctioneers, software designers, actors, and more. Essentially, an independent contractor is contracted to perform work or provide serves to a third-party.
All contractors, independent or not, need to protect themselves from liability claims and other events that could cause some serious repercussions without adequate insurance backing them. Independent contractor insurance protects workers from fees resulting from lawsuits and may also be a prerequisite for many of your clients. A lot of the time, clients will refuse to sign a contract with you without having proof of adequate insurance. Additionally, certain industries mandate that workers must have independent contractor insurance in order to carry out their business.