If you’re a hiring manager or HR lead, chances are you’re no stranger to onboarding independent contractors, consultants, and freelancers. You’re also probably no stranger to the confusion that comes with managing insurance requirements.

We get it—insurance isn’t your full-time job, but ensuring compliance is critical to protect your company from liability, legal disputes, and project delays. That’s where we come in.

At Bunker, we work with thousands of hiring managers to help them understand exactly what they need to ask for when hiring external workers—and how to make insurance compliance quick and painless.

Here are the most common insurance questions we hear—and our expert answers to help you stay protected and move fast.

❓ Q1: Do independent contractors really need insurance?

✅ Short Answer: Yes.
📌 Why: Contractors operate as independent businesses, and just like any business, they can cause harm—either by making a professional mistake or causing injury or damage during their work. If they’re not insured, your company may be on the hook.

Examples of Risk:

A freelance graphic designer infringes on a copyrighted image → Your company is named in a lawsuit.
An onsite contractor trips and injures a client → You’re liable for medical bills or damages.
A consultant misses a deadline on a time-sensitive deliverable → Your client holds you accountable.

Bottom line: Requiring insurance is a smart, standard risk management move.

❓ Q2: What kind of insurance should we require?

🎯 At minimum, contractors should carry:

General Liability Insurance:
Covers bodily injury and property damage caused to third parties.
Professional Liability Insurance (Errors & Omissions):
Covers mistakes, negligence, or failure to deliver promised services.

Depending on the work type, you may also need:

Cyber Liability Insurance (for tech or data-handling contractors)
Media Liability Insurance (for creatives, marketers, content creators)

If you’re unsure what to require, Bunker can help you tailor role-specific insurance requirements using our platform.

❓ Q3: What is a Certificate of Insurance (COI), and why is it important?

🧾 A Certificate of Insurance (COI) is proof that a contractor has active insurance coverage. It outlines:

Policy type
Coverage limits
Effective dates
Insurance provider
Named insured (your contractor)

As a hiring company, you should always request a COI before a contractor starts work. It’s your assurance that they’re properly covered—and that you’re not left exposed.

Bunker makes it easy to collect, verify, and store COIs automatically with every contractor you engage.

❓ Q4: What if the contractor doesn’t have insurance?

🚫 No coverage = serious risk for your business.

However, this is common—especially among freelancers new to independent work. That’s why Bunker exists.

We offer:

Instant, affordable policies designed specifically for independent contractors
A way for contractors to get compliant in minutes
Peace of mind for hiring managers who need work to start yesterday

When your contractor uses buildbunker.com, they can get the exact coverage you require, upload their COI, and you can track it automatically.

❓ Q5: How can I enforce insurance requirements without slowing down hiring?

💡 Great question—and one we hear a lot.

Here’s what works best:

Make insurance a step in your onboarding process. Don’t wait until after the contract is signed.
Use standardized contract language that outlines coverage requirements clearly.
Automate compliance tracking so your team isn’t chasing down paperwork.

Pro Tip: At Bunker, we’ve built a platform that hiring managers can plug directly into their workflow to automate the entire insurance process, from setting requirements to collecting COIs and flagging expirations.

🛡️ Final Thoughts: Get Confident About Compliance

Insurance shouldn’t be a roadblock—it should be a safety net.

Whether you’re hiring one freelancer or scaling an entire contractor workforce, understanding the basics of insurance will help you:

Protect your company from liability
Strengthen client trust
Streamline onboarding
Ensure a smoother working relationship

Still have questions? Let Bunker help.
Visit buildbunker.com to simplify insurance compliance—for you and your contractors. You can also contact us at support@buildbunker.com!