Independent contractors are generally responsible for their own insurance coverage. Many choose to enroll in a general liability policy even when it is not required. This type of independent contractor liability insurance provides coverage for injuries, property damage and related lawsuits.
Why you should have Independent Contractor Liability Insurance
Independent contractors have legal obligations and liability exposure similar to a large firm. A contractor may be sued just like any other company. As a result, most contractors enroll in insurance policies to protect their interests.
General liability insurance is typically the first policy small business owners purchase, because it is often needed to sign commercial leases and client contracts. Without insurance protection, a contractor could be held responsible for any work-related incidents or accidents.
Some industries, like construction, require independent contractors to have a general liability policy. Depending on what state you are in, this type of coverage may also be required.
3 Reasons you’ll be Happy to Have General Liability Coverage
1) It’s Good for Business
An independent contractor without general liability insurance is at a disadvantage today. Many businesses prefer working with contracting companies that already have insurance protection.
2) Bodily Injury
General independent contractor liability insurance covers bodily injury claims. For example, if you were to cause injury or death to a third party while working, you would be covered under this type of policy. Or, if someone is injured or killed after wandering into your construction site, you may be held liable.
3) Property Damage
Construction is a messy business. Workers and equipment can damage people and property. If there is the potential for you or your employees to cause damage to someone else’s property, you would benefit from having general liability coverage.
It’s a Great First Step to Full Insurance Coverage
Independent general liability insurance is the logical first step in the insurance process. It will cover a multitude of incidents that may occur in contracting work. This includes slip-and-fall accidents, property damage, bodily injuries and more.