Who Needs Independent General Liability Coverage?
Oftentimes, businesses with whom independent contractors are working do not provide insurance. That being said, independent contractors are often responsible for their own coverage. Insurance for general liabilities is the cornerstone of contractors insurance. While independent contractors are often required to purchase their own general liability insurance, it’s recommended they do so even in cases when it’s not required.
Why General Liability Insurance is Important for Independent Contractors
One type of coverage that is provided by general liability insurance is bodily injury. If you were to cause injury or death to a third party while working, you would be covered under bodily injury insurance.
While this type of risk can be decreased with proper training and caution, it’s not altogether impossible. Accidents do happen. Besides, even if you do not expressly cause injury to a third party, the responsibility is yours. If someone wanders onto your construction site and is hurt or killed, even if there are warning signs up, you’re still liable.
Bodily injury coverage provides both medical care for the injured person as well as your legal defense if you’re sued for damages.
Most forms of construction are messy jobs that involve plenty of heavy equipment that can seriously damage property. Again, even with extensive training, accidents do happen. If you cause damage to property of belonging to others, whether it’s the building you’re working on or that of another third party, you’ll want coverage for property damage. It’s important to note that damage to intangible property, such as electronic data, is not covered under this type of insurance.
General liability policies often have set coverage limits for each type of claim. For example, medical costs for injuries could cap out at $1 million per person injured or $2 million per incident. In this case, if five people injured had medical expenses of $500,000 each, not everyone would have their medical needs fully covered by insurance.
The Full Package
In addition to general liability insurance, independent contractors should look into other types of coverage to enhance their portfolio. For example, an independent contractor who has to transport or ship their own will benefit from commercial auto insurance or inland marine insurance in case their equipment or materials are damaged during transportation.
For more information on independent general liability insurance, get in touch with one of our specialists at 800-649-9094.