An independent contractor is a person or company that provides services to other companies on a contractual basis. However, as their title suggests, they aren’t employees of the company they work with.
Independent contractors don’t receive any benefits from the company and usually work as subcontractors or consultants for one company at a time. Independent contractors rely on their skills and expertise to provide service for each client, which means they need different types of insurance coverage depending on what type of IC they are.
In this blog post, we will look at all the types of independent contractors that need general liability insurance and how it can help them when something goes wrong in their line of work.
What Does Business Liability Insurance Cover?
General liability insurance covers ICs from accidents that happen during their work. The IC is liable for any injuries or damages they might cause to the company’s property, equipment, and even people involved in the transaction of service between both parties.
General liability insurance covers:
- Advertising injury, including copyright infringement
- Reputational harm caused by slander or libel
- Property damage or bodily injury that your small business causes
Independent Contractors That Need Liability Insurance
There is a wide variety of independent contractors, and each one has different requirements when it comes to insurance. Here we will list some types of IC that need general liability insurance:
- Plumbers
Contractors who offer plumbing services need general liability insurance to cover any damages they might cause to a company’s property. The most common type of damage for plumbers is water damage due to faulty installations or lack thereof.
- Electricians
The same goes for electricians and other types of contractors that work with electrical issues. In case of an accident, general liability insurance will help them cover the costs of any damages they might have caused.
- IT Professionals
Independent contractors who provide IT services are often required to have general liability insurance by their clients. This is because they have access to sensitive company information. If something goes wrong, the IC is liable for the damages.
- Carpenters
Carpenters are ICs that provide services to construction companies. They usually have the same requirements as plumbers for general liability insurance, as they might cause damage to a company’s property or even injure their employees while working onsite.
- Graphic Designers
Graphic designers need general liability insurance because they work on different projects for multiple companies at a time. This means that if something goes wrong during their project, the IC is liable and, therefore, needs to have proper coverage.
Other Type Of ICS That Require General Liability Insurance
- Independent construction contractors
- Painters
- House and carpet cleaners
- Freelance writers and editors
- Freelance photographers
- Independent hair stylists and salon professionals
- Independent business consultants
- Independent PR consultants
- Independent marketing consultants
How Does General Liability Insurance Help Independent Contractors?
General liability insurance protects independent contractors from accidents during their work. This type of insurance covers the independent contractor from any liabilities, including property damage, bodily injury, and even advertising injury.
When an independent contractor has general liability insurance, they don’t have to worry about any financial damages from an accident. This type of coverage can help them continue providing services for their clients without worrying about any future legal issues.
Other Types Of Insurance For Independent Contractors
Independent contractors often need specific types of insurance to protect themselves from different risks. In addition to general liability insurance, ICs should also consider getting the following types of coverage:
Commercial Auto Insurance
Freelance workers who use their vehicles for business purposes should have commercial auto insurance. This type of policy will cover any damages or injuries while the IC is driving for work.
Professional Liability Insurance
Also called errors and omissions insurance. This type of policy will help them cover any legal costs if they are sued for professional mistakes in their business services.
Workers’ Compensation Insurance
This type of policy will help independent contractors cover any medical expenses or lost wages if they are injured while working.
Paradiso Insurance Offers Liability Insurance For Independent Contractors
Having general liability insurance is extremely important for independent contractors. It protects them from any damages they might cause when performing services for clients and companies alike.
If you’re looking for an IC insurance specialist, Paradiso Insurance is the way to go. As an insurance agency, we work with different types of independent contractors to help them get liability coverage for their businesses. Get in touch with us today.
