There is a sense of freedom being an independent contractor. You can do things your own way and accept jobs individually without being micromanaged. However, your independence also comes with complete responsibility for your own finances. Without protection, a single liability claim could cost you your business. Here are some other reasons why business insurance is necessary for your independent contracting company.
Client And Contract Requirement
An independent contractor’s financial success lies in getting steady contracts. Some potential clients require independent contractors to submit certificates of insurance for general liability and workers compensation before signing contracts. Having proper coverage increases your chance to land the deal you want.
Coverage For Job Accidents
A lot of jobs in the contracting business require workers to risk their safety on a daily basis. In this case, it’s always best to have coverage in case of an emergency. Commercial general liability insurance protects you in the event of damage to property, as well as personal and advertising injury. It also covers medical payments in case of personal injuries due to the operation of your business.
Coverage For Property
Property insurance provides coverage for your equipment and building in case of a natural disaster, theft, fire, or vandalism. Business Owners Policy (BOP) bundles property insurance with general liability to give you the coverage your business needs.
Any damages or loss of electronic records, however, is not covered by BOP. In this case, adding cyber insurance will help you deal with possible lawsuits and notifying involved parties.
Business Vehicle Insurance
Accidents can occur not just on your property or on a third-party site but also on the road. Thus, it is crucial for an independent contractor to have commercial auto insurance. It will protect both contractor and client if an accident happens while a worker is on the road because of a job.
Compensation Benefits For Workers
In an independent contracting business, your product is the service that your workers provide. Workers compensation should be ready, so you can protect them in case of injury or sickness while on the job. It will also protect you from potential lawsuits regarding poor working conditions.
It’s a common mistake for some independent contractors to cut cost by forgoing insurance. But in times of need, insurance is still your best ally to keep your business afloat.
At Desmond Insurance, 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 (859) 491-5100 or Click Here to request a free quote.
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