Independent contractors carry a lot of possible risk and potential liabilities with their operations, possibly holding over some of that risk to the business owners they are working for. From injuries to property damage, all parties involved face possible legal issues that can ruin a contractor’s reputation.
A good line of defense to protect against risks is obtaining effective and protective general liability insurance for contractors. General liability, at a high level, provides coverage for customer injuries, customer property damage, and lawsuits as mentioned above. This kind of insurance coverage is popular among small business owners, especially those who see a good deal of foot traffic. However, this is also an effective policy that can help protect contractors.
Why Does an Independent Contractor Need Insurance?
General liability insurance is an essential measure that protects contractors who can be sued and held liable for damages. This insurance package protects contractors from being sued for damaging clients property, causing bodily harm, or advertising injury, and it helps cover legal fees and damages resulting from a lawsuit.
Additionally, clients may require contractors to have general liability insurance before they sign a contract. Without this insurance, they could be held responsible for alleged wrongdoing caused by a contractor’s work.
Finally, general liability may be required by law as certain industries, like construction, prefer contractors obtain it in order to be in operation. Without insurance, contractors have to pay out of pocket to defend themselves in court and pay for damages.
How Can Contractors Obtain General Liability Insurance?
Independent contractors can gain coverage in one of two ways. First, business owners can add them to their general policy as an additional insured. What this means is that they are covered by the owner’s insurance for as long as the job at hand takes place. A business can add multiple contractors to its own general policy. This naturally makes things more expensive, but the cost is much less than suffering a lawsuit or reputation damage.
The second option is for contractors to get their own general liability insurance policy, which is often the safer bet, as there is never a guarantee that contractors will.
About Shields Insurance Agency
Shields Insurance Agency is an independent insurance agency located in Birmingham, Alabama that provides insurance coverage to local businesses and families throughout the southeastern United States. As an independent agency, we will shop your coverage with numerous top-rated insurers, virtually guaranteeing you get the most competitive rates available with broad coverage terms. For more information on our products and services, contact us today at (205) – 783-5893 to speak with one of our professionals.Posted on