Insurance for Freelancers and Production Crews
Insurance is a frequently overlooked and misunderstood aspect of working with freelancers and production crews. OOTB sees insurance issues firsthand when implementing our IC Vetting service.
Corporations need freelancers to be insured to protect their business.
Many freelancers lack insurance coverage and don’t know how to get it.
The insurance application process can be time-consuming and require extensive communication.
Production teams are stuck in the middle, trying to secure the freelancers they need to execute creative projects on tight deadlines.
Approximately 80% of the insurance reviews OOTB conducts while vetting independent contractors uncover insurance coverage errors or omissions that must be addressed before onboarding. This creates unnecessary stress for both the freelancers and our clients’ production and corporate teams. To help alleviate that stress, we’re addressing some common misconceptions about insurance for freelancers.
OOTB’s IC Vetting + Insurance Solution
OOTB partners with 1099Policy to offer on-demand, per-project insurance integrated directly into our independent contractor vetting service. It provides freelancers with same-day coverage and is a fast and easy way to ensure corporate insurance requirements are met.
Important note: This page provides general information. It does not constitute legal or financial advice.
Do freelancers need insurance?
Freelancers are not always legally required to carry insurance, but going without it creates real risk for both the freelancer and the business hiring them. Without insurance coverage, liability for workplace injuries, property damage, or third-party claims can become complicated and potentially expose the hiring company to compliance issues and financial risk. If an accident involving uninsured contractors occurs on a client’s project, the responsibility for the incident can be litigated and potentially shared among parties.
Does a hiring entity’s insurance cover freelancers and production crew?
This is one of the biggest misconceptions we run into. The hiring entity’s insurance policies do not automatically cover freelancers and production crew if they are engaged as independent contractors. In most cases, businesses cannot extend their workers’ compensation coverage to independent contractors.
Example 1: If a corporation is producing a photo shoot, any independent contractors that are hired to work on that shoot are NOT covered by the corporation’s workers’ comp and general liability insurance.
Example 2: Agencies carry workers’ comp and general liability insurance for their internal employees. However, those insurance coverages do NOT extend to the creatives the agency represents, unless the agency compensates them as W-2 employees.
An independent contractor is legally expected to operate as an independent business. Independent contractors are required to maintain insurance policies in their own business name, with the business listed as the named insured. Upon request, contractors should provide proof of such insurance to the hiring entity to verify that coverage and policy limits meet the hiring entity’s requirements.
Workers’ compensation coverage is typically required by law for W-2 employees, so if freelancers and production crew are paid as employees, they will generally have this mandatory coverage.
Is there insurance for project-based work?
Traditional insurance can be costly and requires the purchase of annual policies. This can become an even greater hurdle for freelancers who do project-based work, particularly when clients have different insurance requirements.
However, there is an alternative product called “fractional insurance.” Fractional insurance provides on-demand, per-project coverage that is a great fit for project-based work. With fractional insurance, freelancers have active coverage that satisfies client coverage requirements for the length of the engagement, avoiding long-term costs and unused premiums.
What kind of insurance do freelancers need?
Freelancers/independent contractors/vendors must carry their own insurance, and businesses should always tailor insurance requirements to their specific needs and risk preferences.
The basics to look for are:
General liability insurance
Workers’ compensation insurance
Auto liability insurance (if a vehicle is used while performing services)
Industry-specific policies relevant to the freelancer’s work (e.g., stunt work, driving, rigging, etc.)
How do I know if a freelancer has the right insurance?
Never assume that a freelancer has appropriate insurance coverage!
Always confirm they have appropriate coverage before work begins.
Make sure the policies have coverage limits that align with your business’s requirements.
Check the dates to confirm the policy will be active for the duration of the engagement. If a freelancer works on multiple projects, you must confirm their policies are active for the duration of each engagement.
Request copies of the appropriate certificates of insurance (COIs) and keep them on file as proof of coverage.
If you want more information on insurance terms, including an example COI and what to look for, check out our Insurance Terms Glossary.
Or, let OOTB take care of it.
OOTB’s partnership with 1099Policy gives you access to an industry-leading independent contractor vetting and payment service that integrates fractional, on-demand insurance into contractor onboarding.
We designed it to keep production moving while satisfying corporate requirements.
No more scrambling for certificates or production delays, just the sweet peace of mind that OOTB and 1099Policy are taking care of the insurance puzzle.