independent contractors liability insurance

Independent Contracting: Benefits and Risks to Not Being an Employee

Many more Americans are choosing to be a part of the gig economy than ever before. As an independent contractor, you are not an employee. There are both benefits and risks for working as an independent. Obtaining independent contractors liability insurance can cover the risks of working as a contractor.


Working for yourself as an independent contractor comes with many benefits including setting your own schedule and being responsible for yourself. You set the timeline and tasks you wish to complete and in what order. The taxes are often lower allowing you to keep more money in your pocket. You have better control over how much you make and how much you work. There are many tax deductions you can take as an independent contractor including your insurance.


When you don’t work as an employee, you are responsible for covering your risks and the financial responsibilities that comes. Unfortunately, you have less job security, must purchase or rent your own equipment, labor laws don’t protect you and there are no employee-sponsored benefits. Your only recourse if a client doesn’t pay you is to sue them which can be costly and time-consuming.

Independent contractors liability insurance helps you protect your financial assets when mistakes happen. Like any business, insurance is part of the annual expenses you should take into account. Being aware of the risks can help you make proactive decisions regarding your independent contracting business.

Insurance Risk Advisors