Does General Liability Insurance Cover Independent 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. 

Who Are Independent Contractors?

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.

What Is General Liability Insurance?

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. 

What Is Not Covered by General Liability Insurance?

Although general liability insurance is comprehensive, it doesn’t cover every business risk such as:

• auto accidents
• damage to business premises
• intentional damage
• employee injuries
• professional negligence
• theft 

A business needs other policies, such as commercial auto insurance and commercial property insurance, for full coverage.  

Does General Liability Insurance Cover Independent Contractors?

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. 

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Do I Need Liability Insurance as an Independent Contractor?

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. 

• Without general liability insurance, you’re exposing yourself to serious financial risks.
• Clients may expect you to have insurance before they’ll hire you.

Failing to have liability insurance puts your business in jeopardy.

What Is Professional Liability Insurance for Independent Contractors?

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:

• advertising services
• financial advice
• IT security consulting
• legal advice 

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.

Should Subcontractors Have Their Own Insurance?

Yes. Some insurance policies actually exclude subcontractors, so every subcontractor should carry their own general liability insurance. 

• If you’re a business owner, check that your subcontractor has the right coverage in place before starting a project.
• If you’re the subcontractor, shop around for general liability insurance before starting a job.

Unsure what policy is right for you? The InsurePro team can help.   

How Do I Get General Liability Insurance for Independent Contractors?

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. 

Independent Contractor General Liability Insurance

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!