Do independent contractors need Commercial Property insurance?

Find out why it might be a good idea to take out a commercial property insurance policy as an independent contractor.

David Granahan - Writer for NEXT Insurance
By David Granahan
Kelly Hendrickse - editor for NEXT Insurance
Reviewed by Kelly Hendrickse
Matt Crawford for NEXT Insurance
Fact-check by Matt Crawford

Updated May 29, 2023.

You may need commercial property insurance depending on the nature of your work and the equipment you use.

With a staggering number of independent contractors going full-time in the United States — more than about 31.9 million — you may want to consider adequate insurance protection to help ensure you don't lose business due to any unfortunate incidents.

When should you consider Commercial Property insurance?

If you have high-value business property or equipment, operate a business out of a physical location and own or lease equipment, then commercial property insurance can be a good idea.

Let's look at an example.

Say you're a self-employed graphic designer with your own small office, and you've invested in some pricey equipment that you use for your work.

Here, commercial property coverage can help with the following:

  • If you need to replace the gear due to damages or theft
  • If your office is damaged in certain incidents, like a fire, water leak or windstorm

When might a Commercial Property policy not be necessary?

If you work remotely or use minimal equipment — like only a laptop or phone — you might not opt for commercial property insurance because your gear is, perhaps, easy to replace with your own out-of-pocket dollars.

NEXT's solution for independent contractors

If you're an independent contractor, your insurance needs may differ depending on your type of work. Commercial property insurance is worth considering, particularly if you work out of a specific location and use expensive equipment.

With NEXT, you can get affordable, customizable business insurance that can include a commercial property policy if you need it. Apply online for a quote in less than 10 minutes. You'll have instant access to your certificate of insurance once you purchase coverage, and you can share it 24/7 with the NEXT app.

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