In the modern economy, there is an increasing number of people who are self-employed and classified as independent contractors. This includes freelance professionals such as journalists, web designers, or consultants. While independent contractors may enjoy the flexibility of their position, they also may not be familiar with the risks they face. This is where independent contractor insurance is so important.
What is Independent Contractor Insurance?
Independent contractor insurance is important for independent contractors because it provides protection from certain liabilities and potential claims. In essence, it safeguards the contractor from personal financial losses due to property damage, professional liability, and other risks associated with their business. It can also cover personal property, such as computer equipment and tools, from loss or damage.
Why is Independent Contractor Insurance Important?
Independent contractor insurance is important because it can provide essential protection for independent contractors who may not have access to the same type of coverage as full-time employees. It can help to pay for any mistakes that were made or bodily injuries that arose in the process of the contractor’s work.
What Types of Policies are Available
There are a number of different types of policies that can be purchased to provide independent contractor insurance. Some of the most popular types are professional liability insurance, general liability insurance, and business property insurance. Each of these policies provide coverage for different types of risks and liabilities.
Professional liability insurance is intended to protect the independent contractor from claims made by clients or customers due to negligence or improper advice or services. General liability insurance can provide coverage for a variety of accidents that could occur on the contractor’s work premises, including bodily injuries and property damage. Finally, business property insurance can cover any property associated with the contractor’s business, such as laptops, tools, or office furniture, from any damage or theft, depending on the type of coverage purchased.
What Does Independent Contractor Insurance Cover?
Independent contractor insurance typically includes four main types of coverage: business interruption insurance, liability insurance, property damage insurance, and professional liability insurance.
- Business interruption insurance helps cover costs associated with disruptions due to natural disasters, power outages, and other unexpected occurrences.
- Liability insurance covers claims for injury, property damage, and other damages caused by your professional activities.
- Property damage insurance provides coverage for any physical items that you own or rent for business use, such as office furniture and equipment.
- Professional liability insurance helps protect you in the event of a lawsuit or claim of negligence.
What Is Typically Excluded from Coverage?
Most independent contractor insurance policies will exclude coverage for claims that result from the contractor’s own gross negligence or intentional wrongdoing. In addition, any legal fees resulting from intentional criminal acts by the contractor won’t be covered by the policy.
The Bottom Line
Independent contractor insurance is an essential form of protection for those who work on their own or as a freelancer, covering them for potential losses and liabilities that may arise. It is essential for any independent contractor to have an appropriate policy in place to provide protection from any financial losses. However, it is important to read the fine print of any policy to ensure that any exclusions will not leave you unprotected in the event of a claim.
At Pascal Burke Insurance Brokerage Inc., we can help you find the right independent contractor insurance policy for your particular needs. With access to multiple carriers, we can help you find the right policy that provides the coverage you need at a price that fits your budget. Whenever you need carpentry, commercial, or contractor insurance in Wisconsin, we are the ones to call. Contact us today for more information.