1099 Contractors

Insurance for 1099 Contractors

Protect your independent contractor business from professional liability, client disputes, and data breaches. Get comprehensive coverage designed for freelancers and consultants.

Why 1099 Contractors Need Their Own Insurance

As an independent contractor, you're not covered by your client's insurance. You need your own protection.

Client Insurance Doesn't Cover You

Your client's insurance protects their business, not your professional services or mistakes.

Client Requirements

Most clients require contractors to carry their own E&O and General Liability insurance.

Personal Asset Protection

Without insurance, lawsuits can target your personal assets, home, and savings.

Professional Credibility

Insurance demonstrates professionalism and helps you win higher-paying contracts.

Legal Defense Costs

Even baseless claims can cost $50,000+ in legal defense fees to resolve.

Business Continuity

Insurance helps you continue working while defending against claims.

Essential Coverage for 1099 Contractors

These coverages are essential for protecting your independent contractor business.

Errors & Omissions (E&O)

Professional liability for mistakes, service failures, and professional negligence.

  • • Missed deadlines or deliverables
  • • Service quality disputes
  • • Professional advice errors
  • • Contract disputes
  • • Client relationship issues

General Liability

Protection against bodily injury, property damage, and personal injury claims.

  • • Client injuries at your office
  • • Property damage during work
  • • Slip and fall accidents
  • • Equipment damage
  • • Third-party injuries

Cyber Liability

Essential for contractors handling client data and digital work.

  • • Data breach response
  • • Client data protection
  • • Ransomware attacks
  • • Business interruption
  • • Regulatory fines

Business Equipment

Protection for your work equipment and tools.

  • • Computer and software
  • • Professional equipment
  • • Office furniture
  • • Tools and supplies
  • • Data and files

Real Claims Scenarios

These are actual claims that 1099 contractors face. Without proper insurance, these could be devastating.

Missed Project Deadline

A web developer missed a critical project deadline, causing a client to lose $25,000 in revenue. The client sued for breach of contract and lost profits.

Result: E&O insurance covered the settlement and legal defense costs.

Data Breach at Home Office

A consultant's home computer was hacked, exposing client data. Multiple clients sued for data breach damages totaling $50,000.

Result: Cyber liability insurance covered notification costs, legal fees, and client settlements.

Client Injury at Meeting

A client slipped and fell during a meeting at the contractor's home office, suffering injuries requiring $15,000 in medical treatment.

Result: General liability insurance covered the medical costs and legal defense.

Coverage Recommendations

Recommended coverage limits based on your contract value and client base.

Small Contracts

E&O Coverage $1M / $2M
General Liability $1M / $2M
Cyber Liability $1M
Annual Premium $1,500 - $3,000

Medium Contracts

E&O Coverage $2M / $4M
General Liability $2M / $4M
Cyber Liability $2M
Annual Premium $3,000 - $7,000

Large Contracts

E&O Coverage $5M / $10M
General Liability $5M / $10M
Cyber Liability $5M
Annual Premium $7,000 - $20,000

Protect your contractor business

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