Why Independent Contractor Insurance is Important?
Independent contractor insurance is highly required for independent contractors because just like any other small business owner, independent Contractors can be sued and can be held liable for damages.
By having insurance, contractors can take a sigh of relief and feel secured. Insurance for contractors is insurance that provides coverage to contractors and building professionals for construction errors.
Contractors professional insurance is purchased by contractors that provide design and building services and includes coverage of mistakes made by the contractor as well as errors made by the third parties hired by various contractors like engineers, architects and other vendors.
Benefits of general contractor insurance
General contractor insurance is important for independent contractors. The importance includes:
Protection to independent contractors and their business:
Just like large firms, independent contractors have the same legal obligations and liability exposure. They can be sued for damaging the property of client, causing bodily harm, or advertising injury.
General contractor insurance helps them cover legal fees and damages resulting from a lawsuit.
Your clients want you to have it:
Your clients may require you to have general contractor insurance before signing a contract with you. Without this insurance, they could be held responsible for allegeed wrongdoing or accidents caused by you or your work.
Requirement by law:
Sometimes state regulations require independent contractors in certain industries such as construction, to carry general liability coverage. Most often, it’s best for both you and your client to have separate insurance policies.
How much does general contractor insurance cost?
General contractor insurance costs differ based in the risks faced by your business such as:
The types of projects you work on.
Your payrolls and the kinds of jobs employees do.
Where your projects are located
The number and types of vehicles you use at work.
Requirements for general contractor insurance:
General contractors are always required to have insurance due to risk of injury and property damage. You need insurance to win a bid or start work on a project because clients and local governments might ask you to have active insurance.
You also need insurance to repair or replace property you rent or own. Protect your inventory, equipment and even the building that you own or lease.
In case you need any help regarding independent contractor insurance or insurance for contractors, reach out to Business Insurance Market.
You will get best guidance and services from Business Insurance Market.