Insuring 1099 Contractors

Did you know that 25% of construction workers are 1099 contractors?

Insuring Your Contractor Clients

Contractors Insurance 101

Do 1099 Contractors Need Insurance?

Did you know that 25% of construction workers are 1099 contractors? As the construction labor market stiffens, employers turn to independent contractors to fill the gap. Although this allows business to go on as usual, separate problems can arise if the workers’ employment classification is unclear for insurance purposes.

What to consider when insuring your 1099 contractor?

It is important for an insurer to fully understand the contractual agreements of a 1099 contractor in order to take into account all the risks involved for underwriting. Doing so can prevent setbacks when it’s time to renew a policy or even pay out a claim. 


Two questions that are important to ask yourself when insuring your 1099 contractor: Does the worker primarily perform as an employee? Does the company manage and provide the same treatment to the worker as it does to its employees? 


If you answered yes to these questions, then it is most likely that the worker will fall under the employee classification of the hiring company’s insurance policy. 

Employment Status

Identifying the worker’s employment status should be one of the first steps when issuing a policy.



If a 1099 contractor is injured on the job, a general liability policy might pick up the claim due to the 1099 contractor not falling under the definition of “employee”, even though GL usually excludes workers compensation.

Greenwood General Insurance Agency is staffed with seasoned Underwriters  ready to assist you in your risk submission to ensure all the necessary information is provided. The Underwriters at Greenwood specialize in providing our brokers with everything they need to ensure their success.

Independent Contractors Insurance

Independent contractors insurance provides coverage for any claims that 1099 workers may face while operating their business. This type of insurance policy is best for:



  • Plumber
  • Painters
  • Independent contractors
  • Electrical Contractors
  • Repair Contractors

Insurance fraud

Independent contractors insurance can refer to several different types of commercial insurance including general liability and business owners policy (BOP).



It is important to understand the laws for every state a contractor operates in. In many states, the company is responsible for paying a claim through their contractors workers compensation policy if an on-site injury occurs.

Here at Greenwood, we focus on fast communication and easy applications, which is what makes our brokers so successful. Get started by booking a free demo with our best Underwriter.

Greenwood General Insurance Agency

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  • 50+ Classifications including General Contractors
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