Monthly Archives: September 2019

How much is Insurance for Independent Contractors

If you are an independent contractor, taking relevant insurance covers is very important for your business. This protects you from heavy losses that might occur due to various things. For example if you are woodwork independent contractor, you may need to take insurance policies that covers various woodwork tools like circular saw, table saw, jig saw and other tools that you cannot afford to lose. The good thing is that most of these insurance policies are not very expensive. In this article, we shall outline some of the best insurance policies for independent contractors and their cost.

General Liability

For independent contractors who work in the construction sector this is one of the important policies for such businesses. With this cover, you are guaranteed that risks that might occur in line of your duty are catered for. Since in most cases you will need to visit job sites and interact with clients, this cover will cater for any expenses that might occur.

It also covers physical injuries that might happen especially when handling various tools like the circular saw, miter saw, table saw or any other woodwork tool. Imagine what would happen when a customer falls accidentally on one of the tool and you do not have finances to cater for the medical bills. With this policy, you are sure that such risks are covered. If you have a small business, this policy goes for around $400 -$600 annually.

Commercial Property Insurance

Irrespective of the type of tasks you do, you will need different tools to do various tasks. For example, if you are an independent contractor who deals with woodwork projects, you will need various tools like the jigsaw, compound miter saw, band saw, circular saw, miter saw, table saw, sander and other different tools to do various woodwork projects. For sure, there tools are very expensive. Have you ever thought what would happen in case they get damaged or stolen? This is where the commercial property insurance comes in. This policy also caters for various disasters that may happen in your or up to 500 feet from your business like fire, storms, or any other.

Commercial property insurance cover goes for $400-$750 per year depending on the size of your business. The costs also depending with number of tools you have and their prices.

Liability Insurance

This policy depends on the level of risks in your business. For instance, if you are providing structural advice, you may need to pay higher rates than those who handle simple woodwork projects. It goes for $600 per year for those with a small business.

Cyber Liability Insurance Cover for Independent Contractors

If your customers pay via credit card, this policy ensures that your business is protected in case customer’s customer details are stolen. It goes for about 500 per year

Other Insurance Covers for Independent Contractors

Commercial Auto Insurance– If you own business vehicles, you should take to cover your business vehicles. It goes for about $1000 per year.
Hire and Non owned auto insurance – At times you may opt to hire a business vehicle instead of buying. In such a case, you will need to consider hire or non-owned auto insurance. Again, it is good for independent contractors who rent, hire or borrow vehicles for business purposes. This cover goes for about $100 per annum.

Commercial Umbrella Insurance– This is another important cover which caters for any claims that are higher than the existing and underlying policy limits. This insurance cover goes for $1000-$2500 per year.


If you are an independent contractor, those are the most important insurance covers you should take for your business. With these covers, you will always have a piece of mind that your business is covered against risks that might occur. Again, if you own various tools like the band saw, table saw and miter saw, commercial property insurance will be the most suitable because In case any of the tools is destroyed or stolen, you will get compensation from the insurance company.

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