If you are an independent contractor, you may not think you need any type of liability insurance. However, like any small business owner, it is a good idea to have at least basic insurance. There will always be people who will try to sue anyone and everyone for any reason. No matter what your line of work is, you never know if you can be held accountable for something in any way. Don’t risk it – invest in general liability insurance for contractors.
Even if your job is primarily to sit in front of a computer all day, you are not fully protected from potential lawsuits of some kind. Independent contractors have virtually the same legal obligations and liability statements as large companies and firms. Depending on your industry, you could be held liable for anything from bodily injury to advertising defamation to copyright infringement.
There are some industries where general liability insurance is required by law for independent contractors. What if your business starts to grow and you have to start hiring employees or hiring work for others yourself? You will also need protection for them.
What to Look for in General Liability Insurance for Contractors
You do not want to purchase general liability insurance for contractors from any company. Here are some things to look for in a business insurance provider:
• Simple monthly payments are always good, especially if you have cash flow problems. Choose a provider that has flexible payment plans to keep things as smooth and simple as possible.
• Make sure the coverage includes all the essential elements: bodily injury, slander / libel / defamation, and property damage. The ideal general liability insurance plan should include these at a minimum.
• Global coverage is important as many contractors work with companies from other countries. You must be protected for your work anywhere in the world, although your covered claim must be filed in the US or a US territory.
• If you are a home-based business, you should be able to obtain an insurance policy that is tailored to your specific needs. Some companies offer just that. Error and omission insurance is something to be aware of, as well as software copyright infringement. Read home insurance policies carefully to find out what is covered. There are risks that you may not even be aware of.
• The length of time an insurance company has been in business is an extremely important consideration. If it has been around for a long time, even decades, then it is a sign that the company is doing something right.
Which provider is right for your needs? If you need general contractor liability insurance, a good place to start is Hiscox Business Insurance. Its origins date back to 1901. The Hiscox Group now employs more than 2,000 people in 13 counties. You can get personalized plans with flexible payments.