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General Liability Insurance
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General liability insurance for contained contractors
- General liability insurance
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Full general liability insurance covers common business concern risks like customer injury, customer property damage, and advertising injury. It protects your small business from the high costs of lawsuits and helps you qualify for leases and contracts.
Why does an contained contractor need general liability insurance?
Like whatever other modest business owner, independent contractors can be sued and held liable for damages. Full general liability insurance is essential for independent contractors because:
It protects you and your business. Independent contractors accept the same legal obligations and liability exposures as larger firms. They tin can exist sued for dissentious client property, causing actual impairment, or advertisement injury. General liability insurance helps cover legal fees and damages resulting from a lawsuit.
Your clients want you to have it. Your clients may crave you to accept general liability insurance before they sign a contract with you. Without this insurance, they could be held responsible for alleged wrongdoing or accidents acquired past you or your work.
It may be required by law. State regulations sometimes require independent contractors in certain industries, such every bit construction, to comport general liability coverage. Most often, it's best for both you and your client to obtain divide full general liability insurance policies.
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Tin can an independent contractor be held liable for damages?
Independent contractors can be sued and held liable for damages, merely like other small business owners. Without insurance, y'all would take to pay out of pocket to defend yourself in court and as well pay for amercement. With a full general liability insurance policy, those expenses are covered.
Different industries bring different risks. A 1099 worker hired for a photo shoot faces significantly unlike risks than 1 hired to remodel a bath. For case, the photographer could be accused of copyright infringement, while the remodeler faces the take chances of potential injury to the homeowner.
General liability insurance addresses both issues.
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How does an contained contractor go general liability coverage?
There are 2 ways for an independent contractor to get general liability coverage:
Yous can get your own general liability policy. You can buy general liability insurance from an insurance provider. To evidence a client that you are covered, request a certificate of insurance from your provider. This selection is ordinarily more cost-effective for your clients.
Your clients can add you to their general liability policy as an boosted insured. This means you are covered by their insurance for the duration of the job or longer. A business can add together multiple contractors to its general liability policy. Information technology'southward typically more expensive for clients to include yous in their policy as an additional insured. Notwithstanding, they may decide to add together you, depending on the state of affairs.
Both options provide protection if either y'all or your client is faced with a lawsuit over third-party bodily injury or property damage.
How much does general liability insurance cost?
General liability insurance costs an average of $42 per calendar month. Your cost is based on a few factors, including:
- Corporeality of coverage
- Industry and risk factors
- Location
- Number of employees
- Claims history
What are the benefits of being an additional insured?
An additional insured is anyone besides a policyholder who is covered by an insurance policy. An boosted insured has less protection than the policyholder, but still gains crucial coverage, such equally:
Defence force coverage. If a third party sues the additional insured over work done for the concern, the business concern possessor'south policy can accost the merits. The additional insured tin receive coverage for lawyers' fees, court costs, and settlements or judgments.
Coverage for certain tertiary-party lawsuits. An additional insured may exist covered when sued over bodily injury, belongings impairment, and advertising injury.
Who'due south responsible for adding an additional insured?
Business owners tin add together an boosted insured to an insurance policy; independent contractors can also add business organisation owners to their policy. So is the business owner or the subcontractor responsible for calculation the boosted insured? It depends largely on the scenario, and practices vary by industry.
Independent contractors typically accept insurance obligations in their work contract that they have to fulfill. These contract requirements will often state whether the company needs to be added as an additional insured.
Contained contractor insurance varies significantly beyond industries. Ask your Insureon amanuensis about the cost and benefits of getting your own insurance versus being added to your client's policy.
Other insurance for independent contractors
In addition to general liability insurance, independent contractors may need:
Commercial auto insurance
Commercial property insurance
Commercial property insurance offers financial protection for your workspace and its contents, and is often required by landlords to sign a lease. If yous own or hire a workspace, or if you have expensive equipment, inventory, and other business assets, commercial property insurance would aid pay for the repair or replacement if your business belongings is stolen, damaged, or destroyed.
Business owner's policy
If you intend to buy both general liability and commercial property coverage, you can reduce your insurance costs by bundling them into a business owner'southward policy (BOP). It combines both coverages under one policy, and usually has lower insurance premiums than buying each policy separately from the insurance company.
Errors and omissions
Errors and omissions insurance, too known as Due east&O or professional liability insurance, can offset the cost of a lawsuit if a dissatisfied client sues you over your piece of work. Those who offer professional person advice and services buy this coverage in example a client accuses them of making a mistake, missing a deadline, or failing to evangelize on a contract.
Workers' compensation
Workers' compensation covers medical costs and lost wages from work-related injuries and illnesses. It's required in most states for businesses that have employees. Some independent contractors are required to have this coverage to work in riskier professions, such equally roofing and building trades.
People who work for themselves and don't accept any employees generally aren't required to have workers' comp insurance, but it's however a good thought to carry coverage. Wellness insurance can deny claims for work-related injuries, which means you could end up facing medical bills and lost income while unable to earn a living.
Get free quotes for general liability insurance with Insureon
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TOPICS
- Management consultants
- Contained contractors
- Freelance
- General liability insurance
- IT consultants
Source: https://www.insureon.com/small-business-insurance/general-liability/independent-contractors