If you’re looking for an overview of independent contractor insurance, you’re in the right place. In this article, you’ll learn more about what independent contractor insurance is, what it covers, and why you need it.
Whether you’re an independent contractor or an employer, contractor insurance protects your business. If there’s an injury or property damage, your company could be held liable, and just one lawsuit can devastate your business.
What does independent contractor insurance cover?
There are a lot of coverage options for you to choose from. To figure out what policy is right for you, we recommend you contact an insurance company, like GLB Insurance. To get started, let’s look at some of the most common options:
General Liability: Protects your business against litigation related to bodily injury and property damage.
Commercial Auto: Insures your company vehicle(s). This is important – let’s say you use your personal vehicle for business purposes. If you’re in a car accident on the job, your personal auto policy won’t cover it.
Workers’ Compensation: Many businesses require that independent contractors carry their own workers’ comp insurance. This means that if you’re a contractor, carrying workers’ comp will open up new opportunities to you. If you’re an employer, it will protect you against financial liability should a contractor be injured while working for you.
Tools and Equipment: Tools & equipment insurance is especially important for contractors. It covers the equipment you use in the event of physical damage (excluding normal wear) or theft.
When do I need independent contractor insurance?
Any contractor who needs to manage risk should consider buying contractor insurance. Here are some common situations that call for insurance:
- If you could be held liable: If you’re working on an expensive property or in a dangerous work environment, you could use coverage to protect your business from liability claims.
- If you use costly tools and equipment: If replacement costs would create a heavy financial burden on your business, you may need coverage.
- If you have employees: Having a worker’s compensation policy is mandatory by state law, depending on the state.
- If you use a company vehicle: Repairing or replacing a vehicle can be a financial burden. Insuring work vehicles can save you from a financial crisis.
These scenarios apply to any area of specialty, such as plumbing, electrical, or general contracting. If you live in Nevada and need coverage, GLB Insurance can help you out. We understand that every contractor has unique needs. We will provide the right coverages and rates to suit your circumstances. Contact us to get started today!