Best General Liability Insurance for Independent Contractors and 1099 Workers

Independent contractors often make the mistake thinking that they don’t need insurance, that any liability is covered by the company contracting them. This isn’t the case and can leave contractors left holding a large claims bill if they don’t have insurance. As a result, many companies require their contractors to show proof of insurance with them named as an additional insured to make sure the right coverage is in place. We’ve looked at the best general liability insurance for contractors and 1099 workers. Here’s the list. 

Understanding General Liability Insurance

General liability insurance is a type of insurance policy that pays third party claims if someone is injured or their property is damaged due to your business operations. Common types of claims include slip and fall accidents or accidentally damaging property of a client or bystander. It differs from professional liability insurance in that professional liability insurance pays claims based on errors in professional duties. 

Top Providers of General Liability Insurance

Best Overall: NEXT Insurance

Best for Low Rates: Hiscox

Best for High Coverage Limits: The Hartford

Best for Specialized Coverage Needs: Simply Business

Best for Claims Process: Liberty Mutual

Best Overall: NEXT Insurance

Why we chose it: NEXT Insurance focuses on the little guy with policies made simple and priced to meet the demands of a tight budget. 

NEXT Insurance started working with businesses in 2016. Since then, it has become a well known insurer for the little guy, focusing on small businesses who have few employees. This is a perfect mix for the independent contractor who may not have any employees and simply needs general liability insurance to cover his contractual obligations. On top of general liaibility insurance, contractors can get professional liability insurance through NEXT as well. 

Best for Low Rates: Hiscox

Why we chose it: Hiscox prices policies for the micro company, making it one of the most competitive insurers for independent contractors. 

Hiscox has more than a century of experience working with companies on insuring their interests. Independent contractors and 1099 workers can easily get their insurance needs met with a company that understands what it means to be a small or micro company. The application process is easy and takes just a few minutes online to get a policy. Independent contractors can also get professional liability and workers’ compensation with Hiscox. 

Best for High Coverage Limits: The Hartford

Why we chose it: The Hartford is a large insurer with the ability to take on high coverage limits for companies of all sizes. While an independent contractor may not need such coverage, it is nice to know they can get it satisfied with The Hartford. 

The Hartford was founded in 1810. They’ve been a leader in insurance needs ever since. Independent contractors with high coverage needs can get a policy that meets those needs without breaking the bank. Double coverage doesn’t mean double the premium with The Hartford. In additiion to general liability insurance, companies can get workers’ compensation and professional liability insurance for a wide range of industries. 

Best for Specialized Coverage Needs: Simply Business

Why we chose it: Simply Business is an insurance marketplace able to find the right company for the needs of its clients. It partners with top rated companies to offer the best coverage possible for the best price. 

Simply Business is an online insurance marketplace founded in 2005 with the goal of helping businesses find the right fit for their insurance needs both in coverage and price. An online form starts the process. From there, Simply Business searches its hundreds of partners to find the right fit, doing the shopping for clients. As a marketplace, customer service is handled by the underwriting insurance company and not Simply Business. 

Best for Claims Process: Liberty Mutual

Why we chose it: Liberty Mutual has a simplified claims process that walks you through the claim and offers an online application to follow the claim through its lifecycle. 

Liberty Mutual is a leading provider of individual and business insurance. It takes claims seriously and knows clients need to be informed of what is going on during the process which s why they have an app that does just that. Independent contractors can rest assured that they are in good hands with Liberty Mutual and can get all of their insurance needs taken care of in one reputable place. 

How to Choose the Right Insurance Provider for Your Needs

When looking for the right insurance carrier, it is important to understand what your business needs are. A good agent will help you assess your business and come up with the right policies and coverage limits to protect you adequately. Of course, you should compare quotes and premium prices and ask about the claims process to ensure you are working with a company that suits your needs. 

Methodology

In looking for the best insurance companies for indpendent contractors, we evaluated companies based on their: 

• AM Best Rating: We looked for companies with an A rating or better, showing that they have the financial solvency to meet claims needs. 

• Customer Ratings: Companies that had good customer ratings fared better than those who had poor ratings. 

• Policy Availability: We chose companies that offer multiple policies so that clients can get all their insurance needs in one place.