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The digital era has allowed more and more individuals to leave behind traditional jobs and become freelance contractors. If you're a sole proprietor, you've probably found such independence liberating, but it's important to be aware it does come with its own risks.  

Since you aren't a long-term employee, you don't qualify for insurance coverage under the companies for which you provide services. Fortunately, you can combat potential risks in the future by investing in the right policies today. From commercial insurance to homeowners coverage, learn about three types of protection you need.

3 Types of Insurance You Need as an Independent Contractor

1. Commercial Insurance

Individuals who offer freelance services may not own a separate business entity, but that doesn't mean they can't be held liable for damage claims. Regardless of your industry, the services you provide are designed to benefit a company as well as that business's clients. If something goes wrong or a mistake is made, it can put both of these beneficiaries at risk and cause you to be held liable for legal damages.

Commercial insurance can protect you in this situation by providing liability coverage. Such policies help cover the costs of judgments against you and prevent you from becoming financially responsible for such expenses. The right insurance plan can potentially save you hundreds of thousands of dollars.

2. Worker’s Comp

insuranceContractors should also consider an insurance policy that offers worker's compensation coverage. Since you work independently, your clients' business insurance doesn't cover medical expenses or time off work if an injury occurs. By purchasing a separate worker's compensation policy, you can keep yourself and your finances protected if a job-related injury occurs.

3. Homeowners Insurance

Most independent contractors operate out of their own residence, so it's important to have an insurance policy that also protects your home office. If damage occurs resulting from a fire or burglary, you need to be able to replace your items as quickly as possible to avoid missing deadlines and profits. If your current homeowners insurance policy doesn't protect equipment that's used for both personal and business needs, like a computer, you should consider adding a rider that extends the replacement value of your personal possessions to multi-use items.


If you're an independent contractor, make sure you're protected by contacting Custis Insurance Service. Based in Sheffield Lake, OH, the insurance agency has served the personal and business insurance needs of Lorain and Cuyahoga counties for over 60 years. Their commitment to offering personalized attention to each client sets their services above the rest. Take a minute to learn more about their personal and commercial insurance policies online, and obtain your quote by calling (440) 949-7171. 

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