As a freelancer or 1099 contractor, landing a new client is a huge win—but buried in that contract are a few lines you can’t afford to ignore. We’re talking about insurance-related clauses—and they’re more common than you think.
Whether you’re a web designer, consultant, photographer, or construction pro, understanding these clauses is essential to protect your business, stay compliant, and secure future work.
At Bunker, we help independent workers every day interpret these terms and meet requirements quickly. Let’s walk through the most common clauses—and what they mean for your insurance.
🧾 1. “Must Carry General Liability Insurance”
What it means: You need an active policy that covers bodily injury and property damage.
Why it matters: If you’re working on-site or meeting clients in person, general liability protects you and them from potential legal or medical expenses.
📌 Client concern: “If you damage something or hurt someone while working, we don’t want to be financially responsible.”
Bunker Tip: Many clients require $1M per occurrence. Always check the required coverage limits in the contract.
🧾 2. “Professional Liability (Errors & Omissions) Required”
What it means: You need coverage for mistakes in your professional services—like missed deadlines, inaccurate work, or oversight.
Why it matters: Even small mistakes can cost clients big money, especially in fields like tech, consulting, or creative work.
📌 Client concern: “If you make a professional error, we need to know you’re covered.”
Bunker Tip: This is one of the most frequently requested coverages for freelancers.
🧾 3. “Add Us as an Additional Insured”
What it means: You’re naming the client on your insurance policy, so they’re protected by it too.
Why it matters: It gives clients legal defense coverage if they get dragged into a claim related to your work.
📌 Client concern: “If we’re sued because of your work, we want your insurance to protect us too.”
Bunker Tip: You can add an Additional Insured on your COI instantly through Bunker.
🧾 4. “Waiver of Subrogation”
What it means: Your insurance provider agrees not to sue the client, even if the client contributed to the loss.
Why it matters: It reduces legal headaches for the client and is often required for access to certain job sites or contracts.
📌 Client concern: “We don’t want your insurance company coming after us later.”
Bunker Tip: Not all providers make this easy. Bunker includes waiver options in many standard policies.
🧾 5. “Hold Harmless / Indemnification” Clause
What it means: You agree to protect the client from liability stemming from your actions.
Why it matters: If something goes wrong, they want assurance that you—and your insurance—will cover it.
📌 Client concern: “We don’t want to pay for your mistakes, period.”
Bunker Tip: This clause is where your insurance coverage becomes mission-critical. Without it, you’d be paying out of pocket.
📋 What to Do When You See These Clauses
✅ Read the fine print: Check for exact wording around coverage types and limits.
✅ Match your policy: Make sure your insurance includes the requested terms (Bunker makes this easy).
✅ Send a COI: Deliver a Certificate of Insurance that clearly lists all requested items.
✅ Ask questions: If something’s unclear, reach out to the client—or ask Bunker’s team for help.
🔒 Why Clients Require These Clauses
- Risk Management: They’re outsourcing tasks, but not responsibility.
- Legal Protection: Contracts shift liability to you—and your insurer.
- Compliance: Many companies (especially in healthcare, finance, and construction) have corporate insurance requirements.
🤝 How Bunker Helps You Comply (Fast)
- 📄 Instant COI generation
- 🔁 Custom wording for client-specific requests
- ⚖️ Coverage tailored to meet contract demands
- 📞 Real-time support for tricky clauses
🚀 Final Word: Don’t Let the Fine Print Cost You the Contract
Understanding contract insurance clauses isn’t just about checking boxes—it’s about winning work, protecting your business, and showing clients you’re the real deal.
Need help reviewing a contract or generating a compliant COI?
👉 Head to buildbunker.com and we’ll walk you through it—no legalese required. You can also contact us at support@buildbunker.com!
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