Whether you’re a contractor looking for work, or you’re hiring contractors,
Whether you’re a contractor looking for work, or you’re hiring contractors, you might have questions. Chances are, you’re wondering: does general liability insurance cover independent contractors? After all, independent contractors can be sued just like regular employees, so it’s important to know if you’re covered. Below, we consider how general liability insurance works and whether independent contractors need their own policies.
Independent contractors are self-employed individuals. They enter contracts with other parties to provide certain work or services. Since they’re not employees, they’re responsible for their own taxes, healthcare, and retirement planning.
Anyone can be an independent contractor if they work for themselves rather than a company.
Think of general liability insurance as a shield. It covers the costs of lawsuits for incidents such as personal injury, damage to client property, or an advertising injury.
Do you need general liability insurance? Well, consider it this way – without general liability insurance, you could be held personally responsible for the cost of settling lawsuits.
Although general liability insurance is comprehensive, it doesn’t cover every business risk such as:
A business needs other policies, such as commercial auto insurance and commercial property insurance, for full coverage.
It depends on the policy.
Every business should have general liability insurance, but the policy may not cover independent contractors. Some insurers allow companies to add independent contractors to the policy for the duration of the job; however, business owners may be reluctant because it can impact premium costs.
Typically, contractors are expected to carry their own insurance.
Yes. Remember, as an independent contractor, you can be sued just like anyone else. For example, if you accidentally damage a client’s property on the job.
Failing to have liability insurance puts your business in jeopardy.
Professional liability insurance, or “errors and omissions insurance”, covers mistakes a contractor could make while they’re performing certain jobs. Specifically, professional liability insurance covers contractors offering professional services, advice, and expertise such as:
This type of insurance protects the contractor from legal costs if an unhappy client files a lawsuit. Depending on your area of expertise, you may require professional liability insurance as an independent contractor.
Yes. Some insurance policies actually exclude subcontractors, so every subcontractor should carry their own general liability insurance.
Unsure what policy is right for you? The InsurePro team can help.
Even if a client is prepared to include you in their general liability policy, it makes sense to have your own. Putting a more comprehensive insurance policy in place may be the best next step.
So, if you decide that you need general liability insurance, your first step should be contacting the licensed agents at InsurePro. Our team can match you with various quotes and help you determine which policy is right for your commercial needs.
At InsurePro, we know that finding independent contractor liability insurance can be tough. With so many options to choose from, it’s important to do your research and find the most competitive quote.
That’s where we come in. Our experienced and helpful team will walk you through the process so that you can choose your independent contractor liability insurance with confidence. So, are you an independent contractor looking for an insurance policy? Get the best insurance for you now!