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In a gig economy, temporary jobs are commonplace and companies hire independent contractors and freelancers instead of full-time employees.
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The gig economy experienced significant increases in 2020. COVID-19 lockdowns forced people to work from home and rely more on purchasing goods and services online, and these trends continued when restrictions were lifted. In 2023, nearly 64 million Americans, 38% of the U.S. workforce, were freelancers or gig workers, according to an Upwork report. <anchor>Independent contract workers</anchor> contributed $1.27 trillion to the U.S. economy.
Best Independent Contractor Insurance Companies of 2024
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# Best Independent Contractor Insurance Companies of 2024

Next Insurance offers quick coverage

By

A freelance writer with more than three years of researching and writing about personal loans, insurance, credit cards, and more, Lindsay's work has appeared on sites such as Insurify, Bankrate, and The Simple Dollar.

Updated March 30, 2024

Reviewed by

Reviewed byAnthony Battle

Anthony Battle is a CERTIFIED FINANCIAL PLANNER™ professional. He earned the Chartered Financial Consultant® designation for advanced financial planning, the Chartered Life Underwriter® designation for advanced insurance specialization, the Accredited Financial Counselor® for Financial Counseling and both the Retirement Income Certified Professional®, and Certified Retirement Counselor designations for advance retirement planning.

Fact checked by

Fact checked byBetsy Petrick

Betsy began her career in international finance and it has since grown into a comprehensive approach to journalism as she's been able to tap into that experience along with her time spent in academia and professional services.

You should have liability insurance at a minimum if you’re an independent contractor or freelancer. Professional liability insurance, also known as errors and omissions (E&O), helps pay your legal costs due to claims of negligence, bad advice, or breach of contract. Many 1099 contractors also need general liability coverage for customer claims of physical injury, property damage, or reputational harm from your business operations. You’ll also want commercial property coverage if you have a business premises. You might need other protections as well, depending on your profession.

Some independent contractors may appreciate the convenience of a business owner’s policy (BOP), which packages general liability, commercial property, and often business interruption insurance as well. But not everyone needs that level of coverage.

To calculate our list of best insurance for independent contractors, we look at 53 data points for 19 companies, including cost, customer service coverage, state availability, and the application process (in particular, whether online quotes and applications are available), as well as each company’s financial standing and the experiences of its customers.

#### Best Independent Contractor Insurance Companies of 2024

- Best for Quick Coverage: Next Insurance
- Best for Professional Liability: biBERK
- Most Coverage Options: Chubb
- Best for Temporary Coverage: Thimble
- Best for Freelancers: Hiscox
- Best for Coverage: Huckleberry

Use an insurance marketplace like Tivly to get matched to the best provider for your business.

Best Independent Contractor Insurance Companies of 2024

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Best Independent Contractor Insurance Companies of 2024

### Best for Quick Coverage:  Next Insurance

Investopedia's Rating

4.3

Next Insurance

- Financial strength rating: A- by AM Best
- Pricing: Excellent for liability coverage
- Online availability: Quote and application

Why We Chose It

Next offers low premiums, same-day coverage, and a live certificate of insurance that you can easily update with additional insureds and instantly share from anywhere.

Pros & Cons

Pros

- Instant quote and online application

- Access to a live certificate of insurance for sharing

- Excellent pricing for liability insurance

Cons

- Fewer endorsements than some other companies

Overview

Next offers a same-day application process, plus low premiums and discounts, making liability coverage accessible to the most cash-strapped independent contractors. Professional liability insurance starts at $18.34 per month, and some low-risk independent contractors can get general liability for as low as $11 per month. And you can save up to 25% on your premiums with a variety of discounts from Next, including a 10% discount for bundling two policies.

Next offers general liability, professional liability, a business owner’s policy, and many other policy types, but it doesn’t offer as many endorsements as other companies. Next has an A- (Excellent) financial strength rating from AM Best and consistently has fewer complaints than expected for its size with the NAIC.

### Best for Professional Liability:  biBERK

Investopedia's Rating

4.7

biBERK

- Financial strength rating: A++ by AM Best
- Pricing: Excellent for professional liability but additional insured can cost extra
- Online availability: Quote and application

Why We Chose It

biBERK offers excellent pricing on professional liability policies and is backed by the superior financial stability of the Berkshire Hathaway Group.

Pros & Cons

Pros

- A++ financial strength rating from AM Best

- Excellent pricing for professional liability policies

- Online quote and application

Cons

- Additional insured may cost extra

Overview

biBERK is part of the Berkshire Hathaway Group, and all its subsidiaries are rated A++ (Superior) for financial strength by AM Best so you can count on the company to have the resources to pay claims. biBERK also offers excellent pricing, with professional liability policies starting at around $300 per year. biBERK makes it easy to get a quote and apply for instant coverage with only a few simple questions. And customer reviews about the company on third-party sites are excellent.

You can get professional liability, general liability, and cyber liability from biBERK, and you can also tailor a business owner’s policy to meet your needs if you have a business premises. Dozens of endorsements are available. biBERK makes it easy to access your certificate of insurance, but adding an insured can result in an additional premium. Some other companies allow you to add unlimited insureds for free.

### Most Coverage Options:  Chubb

Chubb

- Financial strength rating: A++ by AM Best
- Pricing: Offers numerous coverage options so you can control cost
- Online availability: Quote and apply online

Why We Chose It

Chubb is an A++ (Superior) insurer that offers a wide range of niche professional liability packages in a variety of fields.

Pros & Cons

Pros

- Wide variety of liability coverages for a range of professions

- Can purchase either claims-made or occurrence-based liability coverage

- A++ financial strength rating with AM Best

Cons

- Must speak with an agent to start your policy

Overview

Media professionals, lawyers, public officials, tech professionals, educators, and contractors can all get specialized coverage from Chubb. Chubb offers general liability insurance as well, and you can purchase your policy either as occurrence-form or claims-made, depending on your needs.

But Chubb doesn't offer a streamlined digital application process, unlike some other insurers we reviewed. You’ll have to speak with an agent to start your policy, but working with an agent is often a good idea if you have high or niche coverage needs.

Chubb has an A++ (Superior) financial strength rating from AM Best, indicating the company is extremely stable, and should have no problem paying claims. The company also received fewer complaints than expected with the NAIC during 2022. Chubb is a great option for a business owner’s policy (BOP) due to the wide range of coverages it offers.

### Best for Temporary Coverage:  Thimble

Investopedia's Rating

4.0

Thimble

- Financial strength rating: A rating by AM Best
- Pricing: General liability can be purchased for as low as $17 per month
- Online availability: Quote and purchase, Site offers numerous educational resources

Why We Chose It

Freelancers who work events, need seasonal coverage, or are just seeking insurance for a short-term contract will appreciate Thimble’s flexible options and occurrence-based liability coverage.

Pros & Cons

Pros

- Buy coverage by the hour, day, week, job, month, or year

- Access a variety of educational resources

- Excellent customer service reviews

- Occurrence-based liability coverage

Cons

- Event insurance not available everywhere

Overview

You can get an on-demand general liability policy from Thimble starting at just $17 per month. This is great for certain types of coverage, like insurance for photographers with event-based coverage needs. Thimble also offers a freelancer’s package that includes both general and professional liability insurance, and you can add other coverages as well, including cyber insurance and business equipment insurance.

Coverage from Thimble is occurrence-form, so you’re covered no matter when you bring the claim as long as a covered incident occurred while your policy was in effect.

Thimble’s site is packed with educational resources you can use to make decisions about the type of coverage your business needs. The company has excellent customer service reviews on Trustpilot. Thimble works with two insurers to provide its policies, but both have an A (Excellent) financial strength rating from AM Best.

Most coverages are available in all states, but a few states are excluded from event insurance coverage.

### Best for Freelancers:  Hiscox

Investopedia's Rating

4.5

Hiscox

- Financial strength rating: A by AM Best
- Pricing: Offers monthly payment options
- Online availability: Quote and purchase, and you can also get help from a licensed insurance agent by phone

Why We Chose It

Hiscox serves independent contractors with freelancer-friendly options like monthly payments, dedicated claims representatives, and customization options for your field.

Pros & Cons

Pros

- Offers both professional liability and medical malpractice coverage

- Relatively high coverage limits for professional liability

- Monthly payment options

Cons

- Not so great customer reviews on Trustpilot

Overview

Hiscox offers both professional liability (E&O) and medical malpractice insurance for a variety of professionals. It offers aggregate limits that are relatively high compared to other companies, and you can add umbrella coverage for increased protection. Independent contractors who need general liability, cyber liability, or a business owner’s policy can get those coverages from the company as well.

You can get a quote and buy coverage online, or you can get help from a licensed insurance agent by phone. You can also manage your policy and start a claim online when you’re a policyholder.

Hiscox holds an A (Excellent) financial strength rating from AM Best, highlighting excellent reliability when it comes to paying claims. However, the insurer doesn't have the greatest reviews on Trustpilot. The company has a complaint index of 1.96 in 2024, which is higher than the average.

### Best for Coverage:  Huckleberry

Investopedia's Rating

4.1

Huckleberry

- Financial strength rating: A+
- Pricing: May not offer monthly premiums depending on your underwriter
- Online availability: Quote and application

Why We Chose It

Huckleberry offers professional and general liability coverage, a business owner’s policy (BOP), and many supplemental coverages, like equipment breakdown coverage.

Pros & Cons

Pros

- Online quote and application

- Policies are backed by many reputable insurers including AmTrust Financial, Chubb, and Markel

Cons

- May not offer monthly payments, depending on your underwriter

- Not available in Massachusetts

Overview

You can get a quote from Huckleberry in just five minutes and apply for coverage entirely online. Policyholders have great things to say about the process on Trustpilot.

Policies from Huckleberry are underwritten by several different insurers, a few of them are Markel, which has an A (Excellent) financial strength rating with AM Best, Chubb, which is rated A++ (Superior), and AmTrust Financial, which is rated A- (Excellent). Depending on your underwriter, however, our research shows you may not be able to pay your premiums in monthly payments.

Huckleberry isn't available in Massachusetts.

## Final Verdict

We recommend Next Insurance for cheap, fast, and straightforward coverage for independent contractors with basic needs.

biBERK offers affordable pricing, many endorsements, and strong ratings, making the company a great option for most independent contractors. But certain professionals who need more specialized coverage may be better served elsewhere. Medical professionals should check out Hiscox, while tech professionals and lawyers may find that Chubb is a good option.

Professionals in high-risk industries who need high coverage limits should consider Chubb, and those who work events or short-term projects may need temporary occurrence-based coverage offered by Thimble. We recommend Next Insurance for cheap, fast, and straightforward coverage for independent contractors with basic needs.

## Frequently Asked Questions

- ### What Is Independent Contractor Insurance?

Independent contractor insurance is any combination of coverages that protect independent contractors from financial risks. Freelancers often need professional and/or general liability insurance at the very least. You may also require a business owner’s policy or business personal property insurance. Depending on your industry, you may need to add special endorsements as well.

- ### What Does Independent Contractor Insurance Typically Include?

Independent contractor insurance typically includes professional liability insurance, which pays for your legal costs if a client claims your advice or negligence caused them a financial loss. This is sometimes referred to as errors and omissions insurance. General liability insurance is another common coverage that protects your business against claims of physical injury, property damage, and reputational harm.

- ### Does General Liability Insurance Cover Independent Contractors?

Yes, you can purchase a general liability policy as an independent contractor. This will help protect you from claims that your business was responsible for causing harm to a customer or client. If you're a handyman and you drop a heavy piece of equipment on a customer’s foot, that customer could sue you for the injury. This type of policy is different from professional liability insurance, which covers legal fees resulting from inaccurate advice or professional negligence.

- ### Do Independent Contractors Need Insurance?

Most independent contractors need at least some form of minimum liability insurance coverage. A couple of states require that independent contractors in certain professions, such as legal and medical fields, carry professional liability insurance. It’s important to have insurance to protect your personal finances even if it’s not required for your industry, especially if you’re a sole proprietor. Liability insurance helps to ensure that a lawsuit won’t wipe away your personal or business assets.

- ### How Much Does Independent Contractor Insurance Cost?

The cost of insurance depends on the type of business you have, the coverage limits you choose, your deductible, and your location. A very robust business owner’s policy could cost thousands annually.

## Methodology

We considered the largest and most prominent providers of independent contractor insurance in the space to determine the best independent contractor insurance companies. We collected 53 unique data points for 19 different companies to compare them on the basis of cost, coverage, accessibility and state availability, and the application process (in particular, whether online quotes and applications are available), as well as each company’s financial standing and the experiences of its customers.

Look at our full methodology for the best small business insurance companies for more information.

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Related Terms

An associate in claims (AIC) is a professional designation for professionals with enhanced skill training to handle different types of claims.

The Chartered Insurance Professional (CIP) designation is a professional accreditation within the Canadian property and casualty insurance industry.

Workers’ compensation pays workers benefits due to a work-related accident or injury. Workers' comp covers medical costs, healthcare, lost wages, job retraining, and disability.

Chartered Property Casualty Underwriter (CPCU) is a professional credential earned by specialists in risk management and property-casualty insurance.

Business interruption insurance is a form of insurance coverage that replaces business income lost as a result of a business interruption event.

Professional liability insurance protects professionals like lawyers and physicians against negligence and other claims initiated by their clients.

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