River Valley Insurance Agency Inc Blog
Independent contractors need the right insurance for financial protection. The right coverage will depend on the type of work that they do. Some contractors spend the majority of their time at a desk doing digital marketing or data entry services while others work on maintenance or construction services that have quite different risk profiles.
Independent Contractor's Insurance: Coverages To Consider:
1) Errors and Omissions
Contractors who give consulting advice like landscape architects, interior designers, financial planners, and accountants should have concern about the liability risks from the losses that a client may experience because of the recommendations of the contractor
2) Property Damage and Bodily Injury
It protects contractors who work with tools and large types of machinery like electricians, remodelers, and plumbers. This coverage can protect from legal liability as a result of mishaps that hazards like compressed gas, defective machinery, and power tools may cause.
3) Liquor and Product Liabilities
Independent contractors that serve alcohol and food at functions should have concerns with the potential illnesses and injuries that alcohol may cause.
4) Disability and Medical
Contractors are usually not under a group plan to cover injuries. It can leave anyone exposed to the risk of loss of income if something causes your injury.
What Is Independent Contractor’s Liability Insurance?
Liability insurance provides protection from third party property damage, mishaps, and lawsuits that may ruin your business. Usually, independent contractors need a few different categories of coverage for complete liability protection:
1) General Liability
The general liability policy is the foundation of all contractor insurance coverages. This coverage provides two kinds of protection:
a) Property Damage
It provides coverage if you or any of your employees causes damage to other people's property. It includes ownership or building you are working on or any assets of a third party.
b) Injury to the Body
It provides coverage if you or your employee causes death or injury to a third party while working. It will provide for the injured person's medical care and covers legal defense in case someone sues you for the damages.
2) Completed product or operations
It gives coverage in case a project you did cause damage or experiences problems. It also goes for the products you distribute or sell.
3) Personal advertising injury
It covers the risk of damage to another person's reputation or loss because of false advertising claims, libel or slander.
4) Liability contract
It covers people in a contract dispute. It is not usually part of the general liability coverage so verify with your insurer if you carry this coverage.
The independent contractor's liability insurance policy should be unique to your business. Make sure to work with a knowledgeable indepdndent agent so you will be sure that your coverage does not have gaps that may expose you to legal claims.
At River Valley Insurance we take pride in making sure our commercial insurance clients and independent contractors are well protected at prices that won’t destroy their bottom line. To learn more about how we can help your business please contact our agency at (616) 301-9500 or Click Here to request a free quote.