5 Reasons to Put Your Independent Contractor Agreements Into Writing

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Are you looking to hire an independent contractor? If yes, you need to put your agreement with them into writing. This will enable you to identify and define the duties and obligations that come with your professional relationship.

An independent contractor agreement is useful for several reasons. For example, it will aid your understanding of several features of the agreement, including worker classification, taxes, dispute resolution, deadlines, payments, taxes, and more. Moreover, if the agreement is written correctly, it may help you avoid conflicts, protect you from liabilities, and ensure you are safe from legal action. Below, we list five reasons why you need to put your independent contractor agreements in writing:

Project Details

A written independent contractor agreement will ensure the work scope is detailed and that the contractor thoroughly understands what they are to do. It is the perfect opportunity to discuss the details, including important dates or deadlines, and a description of what is regarded as a final product. Also, ensure you state the responsibilities required for all the people involved in the project. This includes crucial personnel, stakeholders, project managers, and employees among others.

Legal Protection

If you don’t want to be saddled with the financial burden of a lawsuit, you must include legal protection in your contracts. Put your insurance requirements in writing to ensure that the contractor understands what they are expected to provide. Above all, ensure every party involved clearly understands the legalities involved before agreeing to the deal.

Classification Status

Another reason why your independent or self-employed agreements should be in writing is the classification status. Putting your agreements in writing also enables you to define the facts of the work arrangement adequately. With this, you can demonstrate that the project is genuinely professional with a business-to-business arrangement.

Liability and Licensing

A written independent contractor agreement enables you to confirm that the independent contractor in question has liability insurance. It also helps you ensure that all relevant regulatory bodies fully license the contractor. Hence, they are not in violation of any of the laws binding those operating in their industry.

Intellectual Property and Competition

Finally, it is important to make provisions for intellectual property and completion in your contractor agreements, especially when you’re self-employed freelancer. You can specify the owner of an intellectual property created by the contractor under the written agreement. You can also include an NDA (nondisclosure agreement) that prevents the contractor from sharing information about the contract with your competitors.


Putting your agreement with your independent agreement into writing is vital to protect your business, property, inventions, and contents. The written contract will specify the contract details, classification status, liability and licensing, as well as intellectual property. To do this easily, try making use of a contract template. Finally, if possible, consult with your lawyer before you finalize such an agreement. This is especially necessary for larger deals with several features to iron out.