Why do contractors need insurance if the client is insured?
Last updated: October 28, 2026
Applies to: Independent contractors, US and international, including contractors who work through their own business or company. W-2 employees are covered by Ascen's own insurance and never provide a certificate of insurance, so this does not apply to them.
Summary: You still need your own insurance even when the client already has insurance in place (for example, production insurance). The client's policy does not necessarily extend to independent contractors or their businesses, and it may have exclusions or limitations depending on the policy and the work being done. Your own coverage helps make sure there is coverage if a claim arises directly from your services, rather than relying only on the client's policy.
Why the client's insurance may not cover you
It may not extend to you. A client's policy does not necessarily cover independent contractors or the businesses they work through.
It may have exclusions or limitations. What a client's policy covers depends on the policy and on the kind of work being performed, so the work you do may fall outside it.
The risks of your work belong to your business. As an independent contractor you run your own business, and the risks that come with your work (injury, property damage, professional errors) are expected to be covered by your own policy, not someone else's.
Your independent contractor agreement also makes your policies primary: they respond before any other available coverage.
What your own insurance does
Carrying your own coverage:
covers the risks that come from your own work and business activities
helps make sure there is coverage if a claim arises directly from your services, rather than relying only on the client's policy
makes it clear who is responsible and reduces gaps in coverage
reduces the risk that an uninsured contractor creates extra exposure for the client
protects everyone involved: you, the client, and Ascen
It also keeps one consistent insurance standard across the independent contractor engagements Ascen supports, so contractors placed on assignment have appropriate coverage in place. That is why the requirement does not go away when a particular client has its own insurance.
What you need to have in place
The required coverage. The coverage types and minimum limits are set by your independent contractor agreement. The full list is in Insurance requirements for independent contractors.
The client as an additional insured. Your agreement requires your general liability policy to name Ascen and the client as additional insureds.
A Certificate of Insurance (COI) before you start. You upload a COI showing the required coverage, and it is checked before your assignment goes live.
If you are missing a coverage, your limits are lower than required, or you are having trouble getting a policy, email support@ascen.com and we can help you get the coverage in place. Do not start work without it.
Staffing partners: if a contractor asks you this question, you can send them this article. If a contractor's certificate was sent back, see Your contractor's insurance documents were rejected: what we need and why.
Need help?
Email support@ascen.com with questions about your insurance requirement or your Certificate of Insurance. For scheduling or questions about your assignment, contact your staffing partner.