The basics

How does it work?

Are you in need of small business insurance so you are covered when performing short or quick projects? Whether you are a small business owner or an independent contractor, a short-term insurance policy gives you the same type of coverage as an annual general liability insurance policy, with the only difference being the amount of time you are covered. 

Even though you need business insurance to protect you and your business from the unknown, sometimes you do not need an annual policy to perform your type of work. Choosing a short-term insurance policy gives you the liability coverage you need only when you need it, making this a convenient insurance option for many different types of professions.

A short-term insurance policy gives you the coverage you need so you are always protected.

What is a short-term policy?

When you are in business for yourself, you need some type of liability protection. Fortunately, there are options available when you do not require ongoing insurance coverage. A short-term liability insurance policy is a type of small business insurance coverage that protects you when you work on short projects. Short-term policies normally cover projects that take anywhere between one day and one year to complete.

Short-term policies are also called:

  • Short-term general liability insurance
  • Project insurance
  • Construction project insurance
  • Temporary liability insurance
  • Temporary commercial insurance
  • Temporary business insurance
  • One-day general liability insurance
  • One-day business insurance

The coverage

What do short-term policies cover?

How does a short-term policy protect your small business? There are two main types of short-term liability insurance policies available to protect you when performing short-term projects. 

1. General liability coverage – covers claims of non-employee, third-party property damage, or bodily injury.

2. Professional liability coverage – covers claims of negligence or unsatisfactory work that results in a client’s financial loss.

Short-term policies help cover:

  • Medical expenses to someone else caused by your business
  • Property damage to someone else caused by your business
  • Legal costs if a claim were filed against your business
  • Judgments and settlement costs if you lose a court case

Example 1: You are a handyman who chooses to work on a project-to-project basis. A short-term policy saves you money because you are only paying for insurance when you need it.

Example 2: You are a general contractor bidding on a project. Most projects require you to have a certificate of insurance before hiring you. 

What is excluded?

Business insurance exclusions are included in every business insurance policy. These exclusions either reduce or eliminate certain types of coverage for certain types of businesses. Because short-term policies are tailored for each individual business, all short-term workers must work with their insurance company to find out exactly what is excluded from their specific policy.

Who needs short-term policies?

Short-term liability insurance is often required by those working in the construction business, as many construction projects require independent contractors to have a certificate of liability insurance. Know that short-term liability insurance can easily be used for hundreds of different types of professions and is especially ideal for people who work side gigs.

Who best benefits from short-term insurance policies?

Examples of projects short-term liability insurance covers:

  • Setting up furniture
  • Installing a home theater
  • Installing kitchen cabinets or countertops
  • Installing a bathroom vanity
  • Installing tile floors
  • Installing carpet
  • Installing an HVAC system
  • Building a closet
  • Repairing drywall
  • Installing or repairing appliances
  • Installing ceiling fans
  • Installing outlets
  • Installing an outdoor fence
  • Installing an outdoor deck
  • Unclogging drains
  • Replacing a faucet or toilet


  • Understand the types of insurance you need to legally protect your business
  • Understand all of the potential risks associated with your industry
  • Read your insurance policy
  • Know your coverage start and end dates!


Are short-term policies renewable?

No, after the policy expires you will need to purchase a new policy. 

The cost

How much do short-term policies cost?

It depends on the project. The price you will need to pay for your short-term policy depends on the type of work you are doing, how many people you have working for you, where the project is located, the risks involved, and how long it will take you to complete the project.

Because short-term liability insurance only provides you coverage when you need it, it tends to be the most affordable way for you to protect your business.

Although sometimes it may make sense to get short term insurance, sometimes it makes sense to get a year-long policy. Here are a few ways to find affordable business insurance.

Want to learn more about the cost of business insurance? Check out our guide.

We can save you money

Insurance keeps your business safe. At Pogo, we make the process of purchasing business insurance very simple. All you need to do is fill out our form so we can provide you with the most affordable quotes from over 30 top insurance companies. If you are ready to be in control of your business insurance, we are ready to help you.