The freedom to work on your own terms. The flexibility to choose your projects. The potential to earn more on your own schedule.
These are just a few of the reasons people are leaving traditional W-2 employment behind in favor of life as a 1099 contractor or freelancer.
But while the switch can be empowering, there’s one critical area many new contractors overlook:
🛡️ Insurance.
As a W-2 employee, your employer likely covered your liability, provided workers’ comp, and took care of health benefits. As a 1099? That responsibility is now yours—and being uninsured can expose you to financial and legal risk.
Let’s break down what you actually need to protect yourself and stay compliant as you make the leap from employee to entrepreneur.
Why Insurance Is Non-Negotiable for 1099 Contractors
When you become a 1099 contractor, you are legally considered a self-employed business owner. That means clients aren’t liable for your mistakes, injuries, or damages. Instead, you are.
Without the right insurance, one accident, lawsuit, or cyberattack could put your entire business—and personal assets—at risk.
Plus, many clients require insurance before they’ll even let you start working. They may ask for a Certificate of Insurance (COI) to prove you’re covered.
What Types of Insurance Should New 1099s Consider?
Here are the core policies most independent contractors need—especially when making the W-2 to 1099 transition:
1. General Liability Insurance
Protects you against third-party claims for property damage or bodily injury. Essential for anyone working on-site or in-person.
Example: A photographer knocks over a client’s equipment. General Liability can cover the damages.
2. Professional Liability Insurance (Errors & Omissions)
Covers mistakes in your work—especially relevant for consultants, designers, writers, and anyone providing a professional service.
Example: A freelance marketer is sued for a campaign that underperforms due to a miscommunication.
3. Cyber Liability Insurance
Protects you if you store or transmit client data digitally and experience a breach or hack.
Example: An IT freelancer’s laptop is stolen, compromising client data.
4. Workers’ Compensation (if required)
Depending on your state or your clients’ requirements, you may need workers’ comp—even if you’re a solo contractor.
5. Business Personal Property (BPP)
Covers tools, laptops, and other gear you use for work.
Health Insurance: You’re on Your Own Now
Don’t forget—your employer is no longer offering medical, dental, or vision coverage. You can shop for plans on the ACA Marketplace, consider freelancer health associations, or talk to an independent broker for guidance.
Insurance Costs: What Should You Expect to Pay?
The good news? Insurance doesn’t have to break the bank.
At Bunker, we offer affordable monthly or annual plans tailored to your industry. Many 1099 contractors pay as little as $20–$50/month for essential coverage.
Your rates depend on:
- Your profession
- Level of risk
- Coverage limits (e.g., $1M vs. $2M)
- Location
How to Get Covered Fast—and Stay Compliant
At Bunker, we specialize in insurance for independent workers. You can:
✅ Get an instant quote
✅ Choose coverage that matches client contract requirements
✅ Download your COI instantly
✅ Add clients as “Additional Insureds” with one click
✅ Manage everything online (no paper chasing!)
Final Thoughts: Don’t Skip This Step
The leap from W-2 to 1099 is exciting, but it also comes with new responsibilities. Insurance is one of the most important—and overlooked—parts of setting yourself up for success.
When clients see you’re covered, they see a pro.
When you know you’re protected, you can work with confidence.
And with Bunker, getting there is fast, easy, and built just for you.
👉 Start your new chapter right—get covered today at buildbunker.com
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