What Kinds of Independent Contractors Need Insurance?
Most independent contractors need insurance. Some require additional specialty insurance coverage. In general, the following contractors need some insurance to protect themselves and give clients peace of mind:- Repair contractors
- Home, business, and carpet cleaners
- Construction contractors of all types
- Plumbers, carpenters, electricians, and painters
- Artists such as product designers, graphic designers, and more
Insurance Coverage for Independent Contractors
Workers’ compensation Workers’ compensation is designed to cover expenses for workers injured on the job. You need workers’ compensation insurance if you’re an independent contractor with workers. General liability insurance General liability insurance covers your company in case of unexpected incidents that could happen on the job. It covers bodily injury, property damage, libel, slander, and defamation. Business owner’s policy Combining general liability and workers’ compensation insurance into a business owner’s policy will lower your insurance costs if you plan to buy general liability and workers’ compensation insurance. When you combine both under one policy, you will have lower insurance premiums than purchasing each separately. Errors and omissions This insurance can help offset lawsuit expenses if an unhappy client sues you. As an independent contractor, you need this coverage in case a customer blames you for missing a work deadline or failing to deliver on a contract.
