Working for yourself as an independent contractor can be extremely freeing and rewarding. With the ability to choose your own clients and projects, you have more freedom in your line of work. Unfortunately, you also have more risk. Without an employer to provide insurance, you’re responsible for carrying the right amount of insurance in order to protect yourself and your business.

Even self-employed business owners must adhere to certain insurance requirements as dictated by their state. Be sure to check your state’s requirements to make sure you have the right insurance.

State Required Insurance 

Important Coverages Not Required 

Not all insurance is required, but this doesn’t mean that you don’t need them. As an independent contractor, all liability and property damage expenses must come out of your pocket. It’s important to consider the risks you face to make sure you have the best policy for your business.

General Liability 

General liability insurance covers bodily injury and property damage accidents that occur as a result of everyday contracting activity. This coverage helps with medical expenses as well as legal fees.

Professional Liability 

Professional liability insurance covers claims regarding professional negligence. Professional negligence refers to accidents that occur as a direct result of an independent contractor’s offered specialty or service. For example, if a contractor installs a ceiling fan and faulty wiring causes it to catch fire, the independent contractor will be held responsible for the damages and injuries that come as a result. Professional liability insurance helps cover these costs.