Small Business Insurance for Independent Contractors: Protect Your Business and Your Clients

As an independent contractor, you work hard to build your business and establish your reputation. You offer your clients your expertise and skills, but you also assume a certain amount of risk. That’s why it’s important to have the right insurance coverage in place to protect your business and your clients.

Here’s what you need to know about small business insurance for independent contractors.

General Liability Insurance

General liability insurance is a must-have for any small business, including independent contractors. It protects you from claims of bodily injury or property damage that may occur during the course of your work.

For example, if you’re a consultant and you accidentally spill coffee on a client’s laptop, your general liability insurance would cover the cost of repairing or replacing the laptop.

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, is another important coverage option for independent contractors. This type of insurance protects you from claims of professional negligence or mistakes.

For example, if you’re an accountant and you make an error on a client’s tax return, they could sue you for damages. Professional liability insurance would cover the cost of defending yourself in court and paying any damages awarded.

Workers’ Compensation Insurance

If you have employees, even part-time ones, you may need to carry workers’ compensation insurance. This coverage protects your employees in the event of a work-related injury or illness. It also protects your business from liability claims related to workplace injuries.

Commercial Auto Insurance

If you use a vehicle for work purposes, you may need commercial auto insurance. This type of insurance covers vehicles used for business purposes, such as transporting clients or equipment.

Cyber Liability Insurance

Finally, if you store sensitive client information, such as credit card numbers or personal information, you may want to consider cyber liability insurance. This coverage protects your business from damages resulting from a cyber attack or data breach.


As an independent contractor, you have unique insurance needs. By understanding the different types of insurance available, you can choose the right coverage to protect your business and your clients. Don’t wait until it’s too late – invest in small business insurance today.