Why Your Independent Contractors Need Liability Insurance

Independent contractor insurance might not be the first thing on your mind when managing your workforce, but it should be. On-the-job injuries and property damages are real risks, and not just for full-time employees or construction workers—but for freelancers and influencers, too.

Imagine the chaos of a live event production or a video shoot gone wrong—accidents happen, and when they do, the financial and legal consequences can be downright staggering. Well, at least if you don’t have insurance, that is.

A single mishap can lead to multimillion-dollar lawsuits, threatening the livelihood of the contractor and your business.

That’s why having the right insurance coverage in place is non-negotiable. Fortunately, with the new platform feature from 1099Policy x Worksuite, getting your independent contractors covered has never been easier. Contractors can now access affordable “per-gig” insurance coverage, including workers compensation insurance and general liability insurance, directly through their Worksuite dashboard.

But what is this independent contractor insurance coverage, and is it actually necessary? We have answers to all your questions below. We’ll dive into why your independent contractors need insurance, the potential pitfalls of not having it, and how Worksuite can help you navigate this complex landscape with ease.

Working with independent contractors presents unique challenges, especially when it comes to managing workplace injuries. This risk is particularly prevalent in certain high-risk industries:

These sectors often involve physical activities, complex setups, and unpredictable environments, increasing the likelihood of accidents. Take a look at the following real-life examples to see injury lawsuits in action:

Accidents happen, and when they do, you need insurance to cover the legal and financial responsibilities. Here’s why independent contractor insurance (general liability or workers comp) is needed:

Injuries can happen in any industry, from a slip and fall at a live event to an equipment accident on a film set. These incidents affect the well-being of the contractor and also pose significant financial risks to the hiring company.

Workers’ compensation coverage provides medical benefits and wage replacement to employees injured during employment. Without it, the contractor could face overwhelming medical bills and lost income—and the hiring company could be liable for these costs.

Whether a piece of expensive film equipment gets damaged on set or an influencer accidentally breaks something valuable during a live stream, the costs can add up quickly. General liability insurance covers third-party property damage and can protect both the contractor and the hiring company from costly lawsuits.

This type of insurance guarantees that any accidental damage caused by the contractor is financially covered, reducing the risk of legal disputes and financial loss​.

Workers’ comp covers independent contractors for lost wages and medical expenses if injured on the job. This coverage provides a safety net, giving contractors peace of mind that they won’t face financial ruin due to an unforeseen incident. It also means they can focus on their work without worrying about the potential financial repercussions of accidents.

Here’s a look at the potential consequences of not having adequate insurance coverage:

Navigating the complexities of insurance and understanding the types of coverage for independent contractors can be intimidating and time-consuming. That’s why we partnered with 1099Policy to create a solution that makes securing coverage straightforward and stress-free. Here’s how:

Gone are the days of wading through piles of paperwork to get your contractors insured. Now, contractors can access workers’ comp and general liability insurance directly through their Worksuite dashboard. This integration makes it simple to add coverage on a per-gig basis.

Independent contractor insurance costs can quickly add up, but our partnership helps you get competitive rates that won’t break the bank. Streamlining this process and reducing the need for extensive administrative oversight saves your company substantial amounts of money. Plus, it frees up your legal team to focus on other critical tasks.

Contractors can rest easy knowing they’re covered in case of an accident, while businesses can operate confidently without fearing the financial and legal repercussions of an uninsured injury. It’s a win-win situation that strengthens the relationship between contractors and companies.

Protecting your independent contractors with the right insurance coverage is not just a smart move—it’s essential. Without it, you risk facing significant financial and legal challenges that can cause business interruptions and reputational harm to your contractor relationships.

Fortunately, 1099Policy x Worksuite help you navigate these complexities.

Our integrated solution provides easy access to on-demand, “per-gig” insurance coverage and competitive pricing. This partnership simplifies the entire insurance process, giving you and your contractors peace of mind and allowing you to focus on what truly matters: growing your business and building long-term relationships with talent. Protect your business and your contractors today with 1099Policy x Worksuite.