If your business relies on freelancers or 1099 contractors, you’re not alone. But here’s a question that gets overlooked far too often:
“Are they insured?”

Some companies assume it’s the contractor’s problem—or that insurance is just a formality. As insurance experts, we see the costly consequences of that assumption every day.

Let’s break down the most common myths vs. facts so you can protect your business, your reputation, and your bottom line.

🔍 Myth #1: “If a contractor messes up, it’s their responsibility.”

🚫 The Reality:
Without proper insurance, your contractor may not be able to cover the damages—and your business could be next in line for legal or financial liability.

✅ The Fact:
Hiring uninsured contractors exposes your business to lawsuits, property damage claims, and compliance issues. General Liability and Professional Liability insurance are the bare minimum protections you should require.

🔍 Myth #2: “Only big jobs require insured contractors.”

🚫 The Reality:
Even small freelance projects can come with big risks—think client data leaks, missed deadlines, or accidental damage on-site.

✅ The Fact:
Insurance isn’t about project size—it’s about exposure. Whether it’s a $500 gig or a $50,000 contract, a single mistake could cost far more than the job is worth.

🔍 Myth #3: “It’s too hard for contractors to get insured.”

🚫 The Reality:
Some businesses avoid requesting insurance because they think it’s a hassle for their freelancers.

✅ The Fact:
It’s easier than ever to get insured. With modern solutions like Bunker, contractors can get coverage tailored to their profession and generate a Certificate of Insurance (COI) in minutes.

🔍 Myth #4: “If something goes wrong, our own business insurance will cover it.”

🚫 The Reality:
Not always. Many business policies exclude subcontractor or third-party liability unless those parties have their own coverage.

✅ The Fact:
Relying solely on your policy could result in denied claims or premium hikes. Requiring a COI from contractors creates a stronger risk buffer—and keeps your premiums in check.

🔍 Myth #5: “COIs are just paperwork.”

🚫 The Reality:
Some companies request a COI without reviewing it, assuming it’s just a formality.

✅ The Fact:
A Certificate of Insurance is a legally recognized proof of coverage. It should show the contractor’s policy type, limits, expiration date, and named certificate holder (your business).
⚠️ Red flags include expired policies, vague coverage types, or missing limits.

✅ Why This Matters Now More Than Ever

With the growing freelance economy, more companies are hiring 1099 workers across industries—construction, creative, tech, fitness, and more. But many forget that hiring uninsured contractors can void contracts, slow down project starts, and open the door to unnecessary legal risk.

📌 How to Protect Your Business

✅ Require a Certificate of Insurance (COI) before work starts
✅ Check for appropriate coverage (e.g., General Liability, Professional Liability)
✅ Use platforms like buildbunker.com to refer freelancers for quick, compliant coverage
✅ Stay ahead of compliance issues by building insurance checks into your hiring process

🛡️ Final Thought

Hiring uninsured contractors might seem like a shortcut—but in reality, it’s a risk that can cost you time, money, and legal protection. When you know the facts, you can build a smarter, safer, and more scalable contractor network.

🔗 Need a fast way to help your freelancers get covered?
Send them to buildbunker.com for contractor-specific policies with instant COIs. You can also contact us at support@buildbunker.com!