Being a 1099 contractor gives you freedom, flexibility—and full responsibility for your business risks. From writers and consultants to truck drivers and construction pros, independent workers often face unexpected insurance pitfalls that could be avoided with the right knowledge.
At Bunker, we help thousands of contractors like you stay protected and compliant. Here are the top insurance mistakes we see—and how to sidestep them like a pro.
Mistake #1: Thinking Personal Insurance Is Enough
Many freelancers believe their personal auto, renters, or homeowners insurance will cover them for business activities. Unfortunately, it won’t.
The fix:
If you’re using your car to deliver goods or traveling to job sites, you need a commercial auto policy. Similarly, business personal property coverage or a home-based business endorsement may be needed to protect work equipment or client data.
Mistake #2: Skipping Liability Coverage Entirely
You might think, “I’m careful—I don’t need liability insurance.” But all it takes is one client dispute, damaged equipment, or accidental injury to create a financial headache.
The fix:
At minimum, carry General Liability Insurance to cover bodily injury and property damage, and Professional Liability Insurance if you provide services or advice (e.g., consultants, designers, editors).
Mistake #3: Choosing the Cheapest Policy, Not the Right One
Low premiums are tempting, but underinsured contractors often face coverage gaps, high deductibles, or lack of key endorsements when it counts most.
The fix:
Work with an expert (like Bunker!) to understand your unique risks and tailor a policy that balances premium cost with real-world protection.
Mistake #4: Failing to Request or Share Certificates of Insurance (COIs)
Subcontractors often forget to provide proof of coverage—or forget to collect it from those they hire. That can delay contracts or expose you to liability if someone else causes damage on your job.
The fix:
Always request and retain COIs from others you subcontract with. Bunker makes it easy to get and share your COI instantly through our digital platform.
Mistake #5: Not Updating Coverage as the Business Grows
Many 1099s start with a basic policy and never revisit it. But as your revenue, assets, or client base expands, so do your risks.
The fix:
Review your coverage annually or after any major changes—like launching a new service, hiring staff, or purchasing new equipment.
Mistake #6: Ignoring Contractual Insurance Requirements
If your client contract specifies you need $1M in general liability and a COI within 48 hours—but you didn’t read the fine print—your job could be on the line.
The fix:
Always read your contracts carefully. At Bunker, we specialize in compliant insurance that matches contractual requirements—so you never lose out on work.
✅ Avoid Mistakes, Protect Your Work
Independent contractors are small business owners—and like any business, you need protection. Avoiding these common mistakes ensures you’re not just compliant, but confident.
Need help figuring out what insurance you actually need?
Reach out to Bunker and get insured the smart, fast way—designed specifically for 1099s. If you’re interested in learning more please visit buildbunker.com or contact us at support@buildbunker.com!
