Do I Need to Be Bonded or Insured as a Contractor?

Typically, bonding and insurance apply more to blue-collar jobs, but they can be relevant in our field too. We have to be licensed for the work we do and carry general liability insurance, plus umbrella coverage and bonds for various situations. Talking to a lawyer about what you specifically need is always a good idea.

There are different ways to protect yourself from liability, depending on where you are. For instance, forming an LLC in the U.S. can provide a good level of protection. You might want to check on r/AskLegal for more tailored advice from legal pros.

From what I understand, being bonded is usually more about protecting against fraudulent behavior, while insurance typically covers negligence. But it's likely not necessary for employees, more for independent contractors.

Bonding and insurance are generally something you'd need if you're working as a contractor, like a managed service provider. As an employee, it's less of a concern. If a company was to sue an employee, they'd need to prove malicious intent, which is a different ball game.

We’re bonded through our state and have cybersecurity insurance to cover our systems. We’ve got about $2 million in Errors & Omissions coverage too. Plus, we’re insured in case any of our employees get hurt, harm someone, or damage a client’s property.