While many independent contractors buy insurance for themselves, you may need to provide some types of insurance for the contractors you hire as a way of covering their liabilities and your own.
If your independent contractors need coverage, you can add an independent contractor to your own insurance coverage as an additional insured, either for a single event or for as long as you have the policy. You can do so by notifying your insurance provider, and your premiums or deductible may be adjusted to account for this.
If an independent contractor is not insured, you may be held liable for any lawsuits related to their work, whether it’s for an injury caused by an accident, illegal behavior, or poor workmanship.
Commercial auto insurance is required in most states for any business-owned vehicles. If a contractor is driving a vehicle owned by your business, you ought to make sure they’ll be covered in case of an accident.
If they are often driving their own business vehicle, then it may also be a good idea to ensure they have their own coverage in place. You could ask your contractor to show a certificate of insurance as proof of coverage.
[video: an animated header displays the Insureon logo. Underneath it, a subheading displays the text: "What insurance coverage do independent contractors need?"]
MALE VOICEOVER: As an independent contractor, there are many perks you can enjoy like work flexibility and tax deductions. However, you aren't free from the risks larger businesses often face. With business insurance, you can safeguard your personal assets and your business from costly repairs, legal fees, and medical expenses. There are several insurance policies that provide sustained peace of mind and protect your business. Let's take a closer look at some top policies.
[video: an illustrated header displays the text: "General liability covers:"]
[video: Under above header, three bullet points display the text: "Slip-and-fall accidents"; "Client property damage"; "Product liability lawsuits"]
General liability insurance covers third-party accidents, such as customer injuries or property damage.
[video: an illustrated header displays the text: "Professional liability covers:"]
[video: Under above header, three bullet points display the text: "Accusations of negligence"; "Missed deadlines"; "Errors that cost clients clients money"]
Professional liability insurance, sometimes called errors and omissions coverage, will protect your business from lawsuits related to work mistakes and oversights.
[video: an illustrated header displays the text: "Workers' comp covers:"]
[video: Under above header, three bullet points display the text: "Work-related medical expenses"; "Disability benefits"; "Lawsuits from employee injuries"]
Workers' compensation insurance is required in most states and can shield you from work-related medical costs.
[video: an illustrated header displays the text: "Cyber insurance covers:"]
[video: Under above header, three bullet points display the text: "Data breach notification costs"; "Data breach investigations"; "PR costs for reputational harm"]
Cyber insurance can help your business financially recover from data breaches and cyber attacks.
[video: an illustrated header displays the text: "Commercial property covers:"]
[video: Under above header, three bullet points display the text: "Fires"; "Storm damage"; "Equipment theft"]
Commercial property insurance covers costs if your business property is damaged, destroyed, or stolen.
[video: an illustrated header displays the text: "A BOP covers:"]
[video: Under above header, three bullet points display the text: "Client accidents"; "Stolen or damaged property"; "Business interruptions"]
A business owner's policy or BOP bundles general liability and commercial property coverage together, and is usually less expensive than buying each of these policies individually.
[video: an illustrated header displays the text: "Commercial auto covers:"]
[video: Under above header, three bullet points display the text: "Auto accident injuries"; "Property damage caused by vehicles"; "Vehicle theft and vandalism"]
Commercial auto insurance protects your business from costs related to an auto accident involving your company vehicle.
[video: an illustrated header displays the text: "Fidelity bonds cover:"]
[video: Under above header, three bullet points display the text: "Employee theft or fraud"; "Illegal funds transfer by an employee"; "Client contract requirements"]
Fidelity bonds provide reimbursement to your client if an employee steals from them. These bonds are also sometimes required in contracts.
[video: an illustrated header displays the text: "Why is contractor insurance important?"]
So, why is it important for you to have insurance as an independent contractor?
[video: an illustrated header displays the text: "Contractors may need insurance to:"]
[video: Under above header, three bullet points display the text: "Sign a contract or lease"; "Apply for a loan"; "Comply with federal or state laws"]
You may need coverage to sign a contract or lease. You also might need insurance to comply with federal, state, or local laws.
[video: an illustrated header displays the text: "Insurance can also help:"]
[video: Under above header, three bullet points display the text: "During business closures"; "Gain client trust"; "Attract talent"]
Insurance also protects you from catastrophic losses that could stop your services. Plus, the right coverage can help you gain a client's trust.
Get the best coverage for your business with Insureon today.
[video: an illustrated white header displays the text: "Insureon is your #1 agency for small business insurance"]
Click the link to get started.
[video: an animated header displays the Insureon logo]
