Insurance for IT & Tech Consultants | 1099Policy
Per-engagement E&O and WC for IT freelancers, without taking on the W‑2 risk.
Errors and omissions, cyber, and workers' comp sized to the contract. Client-ready COIs on day one of the SOW.
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The SOW coverage gap
Consultants ship the work before E&O is in place. Enterprise clients are auditing.
The SOW says insured. The broker quote takes three weeks. Five places that gap costs you margin.
Hidden risk
A botched migration takes down the client's storefront, and names the consultant.
E&O and Cyber in the consultant's name keep the firm out of the lawsuit.
EOR squeeze
Routing consultants through an EOR to satisfy procurement adds 20% to the rate.
Per-engagement coverage clears vendor review without the payroll markup.
Classification
AB5's ABC test keeps staffing firms under the misclassification microscope.
Carrying coverage in the consultant's own name is one mark of an independently established business, supporting evidence for IC status, not proof of it.
Day-one COI
Procurement won't open the SOW without a current COI.
E&O, Cyber, and WC issued in the consultant's name, your client added, limits above the MSA minimum, on day one.
Bench effect
Enterprises require coverage. Consultants enroll. The bench clears procurement.
A pre-cleared bench wins the next MSA faster.
Built for procurement review
Four capabilities that survive an MSA review on day one.
What enterprise vendor management asks for: Professional Liability, Cyber, and WC sized to the engagement, itemized for the audit, defensible against AB5.
Assignments API
{
"contractor": "cn_R7MxRd9Qa",
"job": "jb_itConsulting",
"entity": "en_acmeCorp"
}
Bind Professional Liability, Cyber, and WC the day the SOW is signed.
The Assignments API takes the engagement as input (contractor, job, and the enterprise client entity), returns a rate sized to the contract value, and binds coverage when the consultant opts in. Procurement gets a COI before kickoff.
Per-engagement premium breakdown
| Consultant | Prof. Liab. | Cyber | WC | Total |
|---|---|---|---|---|
| Aliya Park | $487.50 | $74.20 | $94.10 | $655.80 |
| Ravi Mehta | $362.40 | $52.10 | $78.25 | $492.75 |
| Engagement premium | $1,148.55 |
PL, Cyber, and WC itemized line by line, the breakdown enterprise procurement signs off on.
Every engagement separates Professional Liability, Cyber, and WC, sized to the contract value. Even a solo consultant on a $50K MSA arrives with the line items procurement asks for, so your consultants clear vendor review without the back-and-forth.
Professional liability
| Additional insured | Insured | Each claim | Aggregate | Retroactive date |
|---|---|---|---|---|
| Aliya Park | Yes | $2,000,000 | $4,000,000 | 2024-01-01 |
Coverage in the consultant's name. Enterprise client named on the COI per SOW.
Professional Liability, Cyber, and WC issue in the consultant's name with the enterprise client listed as additional insured per engagement. The COI procurement actually accepts on day one.
All checks pass
- Coverage in consultant's name: Pass
- Enterprise additional insured: Pass
- Professional Liability ≥ $2,000,000: Pass
- Cyber Liability ≥ $1,000,000: Pass
Procurement's vendor review passes on day one.
MSA-grade compliance checks run automatically: coverage in consultant's name, enterprise additional insured, Professional Liability and Cyber above minimum, AB5-defensible IC posture. The COI procurement actually approves.
Do 1099 IT and tech consultants need their own coverage?
Increasingly, enterprise procurement and MSAs require consultants to carry E&O, cyber, and workers' comp in their own name before a statement of work can open. There's also a misclassification angle: under AB5's ABC test, a consultant routed through a staffing firm can be reclassified based on the degree of control and independence. Coverage in the consultant's own name is one supporting signal of an independently established business. It's not proof of IC status on its own, but it clears a common procurement blocker.
How are per-engagement E&O and cyber sized?
They're sized to the engagement: contract value, scope, and the data the work touches, rather than a flat 12-month policy. Coverage binds for the SOW window, and cyber is matched to the client PII or systems the consultant handles, so limits reflect the actual exposure of that project.
Does carrying coverage affect the consultant's 1099 status?
Not when it's issued to the consultant as the named insured, with the client added as additional insured. That's the opposite of an EOR arrangement, where the consultant becomes a W-2 employee. Coverage in their own name supports independent-contractor posture rather than undermining it.
How does this hold up to AB5 and 1099-K scrutiny?
AB5's ABC test turns on control and whether the consultant runs an independently established business. Coverage in their own name is one supporting signal, not proof, and the full test still governs. (1099-K is a payment-reporting threshold, separate from classification, so it doesn't change who counts as an employee.)
Can we get client-ready COIs on day one of the SOW?
Yes. E&O, cyber, and WC issue in the consultant's name, with your client added and limits set above the MSA minimum, available via API or dashboard on day one, so procurement isn't waiting three weeks on a broker quote.
Who is the named insured on the policy?
The consultant or their business entity, always. Their name is on the COI and the carrier holds the policy in their name. The enterprise client is added as additional insured where the MSA requires it.
Issue E&O, Cyber, and WC the day the SOW is signed.
Insurance sized to the contract value, not a 12-month policy. Client-ready COIs available via API on day one.
Procurement-approved across enterprise MSAs, SOWs, and IC compliance frameworks.