Mostly, independent contractors don’t rush to buy general liability insurance, as their business is small or they don’t work regularly. Whether your business is small or big, things can go wrong. For example, your employee may sustain an injury or cause damage to someone’s property, or your business could be sued for advertising injuries. In such circumstances, you have to bear the losses if you don’t have liability insurance. It is better to buy general liability coverage to stay covered against expensive claims while keeping your business on track.
Here is what you must know about general liability insurance for contractors:
What Is Covered Under Business Liability Insurance?
Commercial general liability usually covers:
- Physical injury and property damage caused by your operations or on your premises
- Advertising injury, including copyright violation
- Reputational harm resulting from libel or slander
Ways Independent Contractors Can Get Commercial Liability Insurance
One way is to buy the policy yourself. Mostly, insurance companies providing business insurance offer general liability coverage. However, the cost and risks covered vary from provider to provider. After buying the policy, you can request the insurance certificate from your provider to share it with your client.
Another way is that your client can add you to their liability coverage as an “additional insured” to protect you throughout the job. Your client can also add multiple independent contractors to their policy, but it would be expensive.
Having your own liability insurance will allow you to work for multiple clients at a time.
Types of Independent Contractors That Need General Liability Insurance
- Independent construction contractors
- Freelance photographers
- Independent PR consultants
- House and carpet cleaners
- Graphic designers
- Independent hair stylists and salon professionals
- Freelance writers and editors
- Independent marketing consultants
- Independent business consultants
General Liability Insurance for Independent Construction Contractors
Construction job sites often have several employees and heavy-weight equipment, so liability insurance helps contractors to stay covered if their worker is injured while operating any equipment or a third party gets injured due to construction tools/materials or workers’ negligence. Some clients require construction contractors to carry some form of general liability insurance before signing the contract. In some states, liability insurance is mandatory for construction contractors.
What Is the Cost of General Liability Insurance for Independent Contractors?
The general liability insurance’s cost varies depending on several factors, including:
- The location and size of your business
- Industry-specific risk exposures
- The deductible you pay
- Types of coverages you may need
- Your coverage limit
You can explore different insurance providers and compare them in terms of the policy’s cost and coverages included. This will help you find out the provider that offers comprehensive coverage at an affordable rate.
Different businesses bring in different risks. However, a customized general liability insurance policy will help you stay sufficiently covered against every possible risk exposure of your business at all times.
Pittman Insurance Group, LLC Can Help Protect Your Business
Whether you are a construction contractor, carpenter, or plumber, we will offer personalized yet cost-effective general liability insurance. Contact us today at Pittman Insurance Group, LLC, to get started.