You built a successful agency with 10 doulas. You just dispatch them and take a cut. One of your doulas drops a baby. The parents sue the doula and you. You think, “But she’s an Independent Contractor! I’m not responsible.” The judge—and the plaintiff’s lawyer—disagrees.
Key Takeaways
- Vicarious Liability: As the agency owner, you can be held liable for the actions of anyone working on your behalf, even contractors.
- “Non-Owned” Coverage: You need insurance that covers “Independent Contractors.” A standard solo policy covers you, not your team.
- COI Tracking: You must require every contractor to provide a Certificate of Insurance (COI) naming your agency as an “Additional Insured.”
- The “Employee” Misclassification: If you treat them like employees (set schedules, uniforms), but call them contractors, insurance might deny the claim based on misrepresentation.
The “Why” (The Trap): The Agency Gap
Solo doula policies are for individuals. When you form an Agency (LLC), the LLC needs its own policy.
If you are sued because your contractor was negligent, your personal malpractice policy won’t cover the agency. And if the contractor has no insurance, the lawyers will come after the “deep pockets”—you and your agency.
The Investigation: Agency Policies
I explored Group/Corporate coverage options.
1. Group Malpractice Policy
- My Analysis: You buy one big policy covering all staff.
- Pros: Everyone is definitely covered.
- Cons: Expensive. You pay for everyone.
2. Roster/Contractor Model
- My Analysis: Each doula buys their own policy.
- The Requirement: They must list your Agency LLC as “Additional Insured.”
- My Test: I tried to add an agency to a CM&F policy. It was easy and free. This gives your agency defense coverage on their policy.
3. General Liability for Office
- My Analysis: Don’t forget the office. If you have a physical space, you need premises liability.
Comparison Table: Structuring Liability
| Structure | Who Pays Premium? | Liability Protection | Admin Load |
| Group Policy | Agency | High (Unified defense) | Low |
| Individual Policies | Contractors | Medium (Depends on their limits) | High (Tracking COIs) |
| No Agency Coverage | N/A | Zero (Bankruptcy risk) | N/A |
[IMAGE: Diagram showing the flow of liability from Contractor to Agency to Owner]
Step-by-Step Action Plan
- Get “Entity Coverage”: Ensure your LLC is the “Named Insured” on a policy.
- Mandate COIs: Before assigning a single client, get the PDF of the contractor’s insurance.
- Additional Insured Status: Require them to add: “[Your Agency Name] is added as Additional Insured.”
- Indemnification Clause: Your contractor agreement should say: “Contractor agrees to indemnify and hold Agency harmless for any claims arising from Contractor’s negligence.”
FAQ Section
If my contractor lets their insurance lapse, am I liable?
Yes. That is why you must track expiration dates. Use software to alert you when a COI expires.
Do I need Workers Comp?
If they are employees, yes. If they are contractors, usually no—but check your state laws. In 2026, gig-worker laws are stricter.
Can I just have them sign a waiver saying I’m not the boss?
Judges look at actions, not paper. If you act like the boss (assigning shifts), you are the boss.