Almost everyone nowadays has some type of insurance, and this is especially true for businesses. Insurance helps business owners protect themselves in the event of negative occurrences, and when it comes to independent contractors and insurance, being covered is just as important. Not only should contractors consider investing in insurance for their own protection, but many employers will not even accept bids for jobs unless they know that the contractors and insurance companies have something worked out.
General Liability Coverage
General liability coverage provides contractors with coverage if something goes wrong on the job. On-the-job injuries and equipment breakage are examples of the types of instances covered under general liability coverage insurance policies. This type of liability coverage covers not only the contractor, but the hiring entity as well.
Commercial Auto Coverage
Contractors and insurance companies can also work together to come up with a comprehensive commercial auto coverage package for contractors who have commercial vehicles as part of their business services. This type of coverage protects both the contractor and the client if an accident occurs while the contractor is driving as part of the assigned job being completed for the hiring entity. For instance, if the contractor gets involved in an auto accident on his or her way to pick up supplies for the job being completed for the hiring entity, then the commercial auto coverage will take care of the costs of the accident rather than the contractor or client being held liable.
Workers Compensation Insurance
Workers compensation insurance provides business owners with protection if one of their subcontractors gets hurt while on the job. This is one of the most essential types of insurance for contractors to make sure that they invest in since it provides them with a safety net if someone becomes injured while on the job. Without workers compensation insurance, contractors could find themselves subject to lawsuits that could end up crippling or even demolishing their businesses.
Another type of insurance that contractors can invest in is a performance bond. Performance bonds guarantee that a contractor’s work will be completed satisfactorily. If the job is not completed according to the set standards, then the bond is released for completing or repairing the project.
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