Do Independent Contractors Need Insurance?

​Independent Contractors refer to self-employed individuals who work for another person or organization under contract. Independent contractors are not classified as employees. They are responsible for providing their tools and equipment. Now the question is, do independent contractors need insurance? Let's find out.

Do Independent Contractors Need Insurance? 
Yes. Like small business owners, independent contractors can also be held liable for damages. They are not immune to liability, so Liability Insurance is a must. There is a variety of Liability Insurance present, but the most common that an independent contractor must have is General Liability Insurance. 

What is General Liability Insurance?
A General Liability Insurance might help cover business risks, including customer injury, property damages to customers, and advertising injury. It may help protect your small business from expensive lawsuit costs and makes you qualified for leases and contracts.

A General Liability policy might help cover the following:

• Bodily injury caused to someone
• Slip and fall accidents
• Copyright infringement
• Product liability
• Slander and libel
• Property damage

Benefits of Insurance for Independent Contractors

1. Financial Security
2. It might cover legal defense and lawsuit costs.
3. Bankruptcy can be avoided when sued.
4. Clients are at peace knowing they are protected.
5. Businesses can hire you worry-free.

Other Types of Insurance That an Independent Contractor Needs
Your insurance depends on the kind of work that you do, and you might need additional business insurance types. The following are:
Commercial Property Insurance
It might cover the costs of damages to a property due to accidents, natural disasters, and hazards.

Commercial Auto Insurance
It may help cover your vehicle if it crashes while doing your business. It might cover expenses related to medical bills and property damages. 

Business Interruption Insurance
This insurance might cover the income you could have earned while your business becomes idle due to incidents and disasters.

Cyber Liability Insurance
It may help cover damages due to data breaches or software hacks. It might also include setting up credit monitoring.

How to get Independent Contractors Insurance?

1. Consider the risks.
2. Determine what amount of coverage you need.
3. If you are running a home-based business, check if you can add an endorsement to your homeowner's policy.
4. After choosing a policy, know how to make payments and file claims.

Conclusion
As an independent contractor, you are more exposed to risks. Without adequate Liability Insurance, lawsuits and disasters can bankrupt your business, and your hard work is gone. Insurance for independent contractors is a necessity. 

At Black and Associates Insurance, Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (509) 464-0058 or Click Here to request a free quote. Any coverage discussed is not guaranteed. Please contact us today to go over your policy to ensure your needs are met! We are here and happy to help.