Insurance for Subcontractors

February 27, 2024
Do I need my own insurance as a 1099 subcontractor?Cha

As a 1099 subcontractor, you are typically considered self-employed or an independent contractor. In most cases, you are responsible for obtaining your own insurance coverage, including health insurance, liability insurance, and any other necessary coverage depending on the nature of your work.

Here are some types of insurance you may need to consider:

  1. Health Insurance: As a self-employed individual, you'll need to secure your own health insurance coverage. This can be obtained through private insurance providers, healthcare marketplaces, or professional organizations.

  2. Liability Insurance: Depending on your line of work, you may need liability insurance to protect yourself against claims of negligence, errors, or omissions. For example, if you provide services that could potentially harm others or their property, liability insurance can offer protection.

  3. Professional Liability Insurance (Errors & Omissions Insurance): If you provide professional services, such as consulting, advising, or other specialized services, professional liability insurance can protect you from claims of negligence, errors, or inadequate work.

  4. Workers' Compensation Insurance: Depending on your location and the nature of your work, you may be required to carry workers' compensation insurance, especially if you have employees. This insurance provides coverage for medical expenses and lost wages for employees who are injured or become ill on the job.

  5. Business Property Insurance: If you have equipment, tools, or other property that is essential for your work, consider obtaining business property insurance to protect against damage, theft, or loss.

  6. Auto Insurance: If you use a vehicle for work-related purposes, you may need commercial auto insurance to cover your vehicle and liability for accidents that occur while on the job.

It's essential to carefully evaluate your insurance needs based on your specific circumstances and the requirements of your industry and local regulations. Consulting with Blake Shelton at McDaniel Insurance Agency can help you determine the appropriate types and levels of coverage for your situation.  Our office is located at 921 Main Street, Shelbyville Kentucky.  He can be reached directly at 502.655.7000 or