Understanding Independent Contractors’ Need for Insurance

As an independent contractor, you’ve taken on significant responsibility for your own financial interests and career prospects. These arrangements can garner a sense of freedom and flexibility while also cultivating lucrative opportunities. However, independent contractors may often lack the financial resources to fall back on should accidents or other unforeseen circumstances arise. Understanding and retaining suitable contractor insurance is essential.

What Is Contractors Insurance?

Contractors insurance can generally be seen as a specialized form of business insurance. These multifaceted packages typically require you to purchase multiple types of policies, each addressing certain risks and exposures relevant to your business.

What Types of Insurance Do Independent Contractors Need?

Given the many specialties and skills independent contractors possess, exact coverage needs can vary significantly. Still, insurance policies can often be tailored to address these unique needs. The value and importance of many types of insurance may transcend your specific circumstances.

Consider building your contractors insurance portfolio around the following:

• Professional liability insurance can render aid if clients or customers accuse you of making mistakes or providing inadequate services.

• General liability insurance may help pay for third-party bodily injuries, property damage and reputational harm for which you’re to blame.

• Commercial property insurance can cover your physical property, including buildings, offices, tools, equipment and electronics.

• Workers’ compensation insurance is typically required by law if you employ others and may assist with losses and expenses following employees’ work-related injuries or illnesses.

• Business interruption insurance can help you recoup lost revenue and pay for ongoing expenses if your normal operations are delayed or disrupted.

• Commercial auto insurance can limit out-of-pocket losses for vehicle-related losses and is also typically legally required.

• Inland marine insurance can help pay for losses involving equipment, tools and materials stored at a client’s location or damaged during transport.

• Commercial umbrella insurance may offer secondary liability coverage if particularly significant losses for which you’re at fault exceed the capabilities of other policies.

We’re Here to Help

Contact Joan Polec Insurance in Deerfield, Illinois, today to learn about coverage options and compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.