Insurance requirements for independent contractors
Last updated: July 23, 2026
Applies to: all independent contractors — US and international. One exception: the workers' compensation requirement applies to US contractors only.
Summary: As an independent contractor you operate as an independent business, and the business risks that come with that are expected to be covered by your own insurance — that's part of what genuinely distinguishes a contractor from an employee. Your IC agreement sets minimum coverage types and limits (general liability, workers' comp, E&O, and others depending on the work), and you provide a Certificate of Insurance before starting work. If you're missing a coverage or a limit — or having trouble getting a policy — email us and we can help you get it.
Why insurance is required
Employees are covered by their employer's insurance. Independent contractors aren't employees — you run your own business, control how you deliver the work, and carry the business risks that go with it. Those risks (injury, property damage, professional errors) need to be covered by your policy, not someone else's. Carrying proper insurance is also part of what supports your independent-contractor status.
The required coverage
Your independent contractor agreement requires policies of the types and minimum limits below, maintained for the term of the agreement with reputable insurers:
Coverage | Minimum limit | When it applies |
|---|---|---|
Workers' Compensation | statutory limits for the state(s) where work is performed | US contractors only — see the FAQ below |
Commercial General Liability (CGL) | $1,000,000 combined single limit per occurrence | always — written on an occurrence form; covers premises, products/completed operations, property damage, personal injury, and contractual liability |
Commercial Umbrella Liability | $1,000,000 per occurrence | always |
Errors & Omissions (E&O) | $500,000 per occurrence | always |
Employer's Liability | $500,000 per occurrence | if you employ your own personnel |
Business Auto Liability | $1,000,000 per occurrence | if driving is part of the services |
Additional policies | as specified | when an assignment requires them (you'll be told in writing/via the platform) |
A few conditions that come with these policies (see your agreement for the full text):
Your CGL policy names Ascen and the client (and their affiliates, officers, directors, and employees) as additional insureds.
Your policies are primary — they respond before any other available coverage.
You pay your own deductibles, and if you use subcontractors, they must carry the same coverage.
These are minimums, not a cap on your responsibility.
Certificate of Insurance (COI)
Before starting work, you upload a Certificate of Insurance showing the required coverage, with at least 30 days' written notice of cancellation or changes. If a policy is cancelled or changed, notify us immediately. The platform reviews your COI as part of onboarding — an expired or missing coverage line is a common reason a COI is sent back.
FAQ
Why is workers' compensation required even when the law says I'm exempt? (US)
This requirement applies to US contractors only. It exists because our workers' compensation carrier requires it as a condition of their policy with us — even where an independent contractor is legally exempt. It's a coverage requirement, not a legal-classification statement. If you're having difficulty getting workers' comp coverage, contact us and we can assist.
I don't have one of these coverages, or my limits are lower. What do I do?
Email us — we can help you get the coverage or limit you're missing. Don't start work without the required coverage in place; your COI is checked before your assignment goes live.
I already have business insurance. How do I know if it qualifies?
Compare your policy's coverage lines and per-occurrence limits against the table above, and confirm your CGL can add additional insureds. Your insurance broker can usually confirm (and fix) all of this in one call.
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