What Type of Insurance Does a 1099 Contractor Need in 2025?

If you’re working as a 1099 contractor in 2025, you’re technically self-employed—which means you’re also responsible for your own protection. From lawsuits to property damage, the risks are real. As industry experts in small business and independent contractor insurance, we’re here to help you break down what insurance you actually need, why it matters, and how to get covered fast.

📌 First, Why Does a 1099 Contractor Need Insurance?

A common misconception is that independent contractors don’t need business insurance. In reality, you’re exposed to many of the same risks as large companies—just without the in-house legal or HR teams to back you up. Whether you’re a freelance developer, handyman, marketing consultant, or construction pro, having business insurance:

• Protects your income and assets 
• Fulfills client contract requirements 
• Boosts credibility with clients 
• Keeps you compliant with legal and professional standards 

🛡️ Must-Have Insurance for 1099 Contractors in 2025

1. General Liability Insurance

This is the foundational coverage every 1099 contractor should carry. It protects you from third-party claims involving bodily injury, property damage, or personal injury.

Example: If a client trips over your equipment at a job site and gets injured, this policy can cover medical costs and legal fees.

2. Professional Liability Insurance (Errors & Omissions)

If your work involves offering advice, services, or deliverables (like writing, consulting, or design), this coverage is essential.

Example: A freelance graphic designer misses a deadline, causing their client to lose a marketing opportunity—professional liability helps cover the fallout.

3. Tools & Equipment Coverage (Inland Marine Insurance)

If you rely on specialized tools or technology (think laptop, camera gear, or contractor tools), this protects them from theft, damage, or loss—even while in transit.

4. Business Owner’s Policy (BOP)

This is a bundled policy that includes general liability and commercial property insurance—perfect for 1099s with home offices or small studios.

Bonus: It’s often more affordable than buying each coverage separately.

5. Workers’ Compensation (Yes, Even for Solo Contractors in Some States!)

Even if you’re a one-person business, some states and contracts require you to carry workers’ comp. It covers lost wages and medical bills if you get injured on the job.

📃 Contractual Requirements to Watch For

Clients hiring 1099 contractors increasingly expect proof of insurance before signing a contract. Here’s what they may ask for:

• Certificate of Insurance (COI) with specific coverage limits 
• Additional Insured status 
• Waiver of Subrogation 
• Coverage matching project type (e.g., construction vs. creative services) 

Pro tip: Using an insurance partner like [Your Company Name] means you can generate a COI in minutes—no paperwork nightmares.

✅ How to Get Covered (Fast & Easy)

At Bunker, we specialize in helping 1099 contractors meet insurance requirements without overpaying or waiting weeks. Here’s how:

1. Get a quote in minutes online 
2. Choose your coverage based on your industry and client needs 
3. Download your Certificate of Insurance instantly 
4. Update as you grow—add endorsements or adjust limits as needed 

Final Thoughts

1099 contractors aren’t just freelancers—they’re full-blown businesses. Without insurance, one mistake or accident could drain your income or shut you down. The right insurance coverage gives you peace of mind, protects your livelihood, and shows clients you’re serious and trustworthy.

Need help figuring out what coverage is right for you? We’re here to guide you—quickly and affordably. If you’re interested in learning more please visit buildbunker.com or contact us at support@buildbunker.com!