River Valley Insurance Agency Inc Blog
When it comes to being an independent contractor, it’s not always clear what types of insurance you’re going to need. The best way to know for sure is to work with a qualified business insurance agency like River Valley Insurance but for informational purposes, here’s some information about two popular types of coverage we get a lot of questions about, workers compensation and professional liability.
Independent contractors may or may not have a need for employee's compensation insurance. If you are in business without employees, you are not usually obliged to purchase workers compensation insurance. However, some situations may require the purchase of workers compensation even if you are not employing other people.
You may be required to carry workers comp if you are a contractor who employs workers. It is a policy that will protect workers from death, injury and job-related illnesses. It also gives reimbursement to workers for the lost wages in case they can't go back to work. It also reimburses the lost wages of workers who cannot go back to work. Companies receive benefits from this coverage because it helps them avoid losses from lawsuits with employees.
Should You Consider Coverage in Professional Liability?
Professional liability coverage, often called E & O, gives protection if you make a mistake that may cause financial loss to clients. It is like the general liability that gives claims settlements and legal defense when necessary.
Here are the circumstances where you will need or want this coverage:
1) In your line of work, you give professional advice. It includes everything from the recommendation of wiring or plumbing for use to the provision of services in interior design.
2) You hire subcontractors and employees who give consulting services and advice.
3) It is required by your state to have E & O insurance because of the work that you do.
If you use subcontractors, it will be great to ensure that they have professional liability insurance because your policy might not cover them.
It’s strongly recommended to work with a professional independent insurance agent before buying a policy. If your colleagues are independent contractors in the same field, they may also share their tips and tricks with you but never take insurance advice from an unlicensed individual as fact. Talk to an agent, it could mean the difference between the success or failure of your business
At River Valley Insurance we take pride in making sure our business insurance clients are well protected from all the risks they face in their line of work. To learn more about how we can help you please contact our agency at (616) 301-9500 or Click Here to request a free quote.