Are independent contractors required to have their own liability insurance?

Generally no. However, you may decide NOT to work with independent contractors who don't carry their own insurance, especially if they are providing services which would be expensive for you to insure yourself (for example, construction work). If they don't have their own coverage (or you didn't get proof of coverage), you may be responsible for the cost at your annual insurance audit, and could be open to lawsuits if someone is hurt or they cause damage to someone else's property (picture a roofer dropping a hammer from three stories up). If you work with subcontractors, especially those in high-risk categories, speak with your insurance provider about your risks.

More Information: Employee vs. Subcontractor: What’s the Difference & Why You Should Care

Tagged With: 1099 Subcontractors,  Liability Insurance