Insurance is a must when working in the independent construction industry. While sometimes businesses will list 1099 employees as “additional insured” on company policies, in general the business with whom a contractor is working will not provide insurance for them.
1099 employees are usually not covered by traditional workers’ compensation insurance. This means that if you are involved in an accident or injury on site, the company may not be required to cover your medical and recovery expenses. In order to be sure that you can handle such situations, independent contractors are required to cover their own risk on a job site. Independent contractors liability insurance can be expensive, but there are many reasons why you should carry coverage.
Injuries on the job often end up involving costly legal battles. Without proper insurance, the fees for court filings, attorney fees and the cost of the injury itself can get far out of hand very fast. It is vital that some sort of injury coverage is available to offset these causes. Otherwise, both the injured party and the business could face financial ruin over a simple injury.
Protecting the Worker
The most obvious benefit of insurance is protection. If you get hurt on the job, you will want to be sure your injuries will be treated by legitimate medical professionals. Insurance is the only way to accomplish this.
Insurance provides defense against far more than injury. If you are neglectful in your duties and get involved in a lawsuit, insurance will protect you from court-related losses. Consider, for example, that you are involved in an accident and have to go to court. Without liability insurance, you could end up broke from legal fees.
Protecting the Business
Requiring contractors to carry insurance can benefit the hiring business as well. If all employees are covered against liability and injury, the business owner has an additional level of peace of mind. In addition, most states require all workers to carry their own insurance as a matter of legal policy.
Risk management is the single biggest benefit of having liability insurance. You may never be involved in an accident in the workplace. However, the confidence that coverage offers you is more than worth the expense. By carrying protection of this sort, you can always be confident that if an accident does happen, you are ready to face it.
The risks contractors face vary from job to job. Building a skyscraper carries greater and different risks than remodeling a bathroom. Having liability protection ensures that no matter what the job, if something goes wrong you will be able to handle the financial end of things. In some cases, it can be difficult to determine who might be responsible for an accident. It is always better to be safe than sorry.
The laws surrounding 1099 employees are complex and detailed. If you are uncertain whether you need to carry independent contractor insurance, we are here to answer all of your questions.