Why Independent Contractors Need Insurance

By on August 21, 2018
Why Independent Contractors Need Insurance

Innovation and creativity fosters an economic environment that make it possible for individuals to be rewarded for their ideas and willingness to take risks that lead to the creation of opportunities for others. Independent contractors are a great example of such people that take the risk and manage to establish successful businesses that support others.

Independent contractors are not bound by mundane 9-5 jobs. It allows them the freedom to accept jobs on a case-by-case basis. It further gives them greater choice in choosing jobs that they enjoy doing.

However, when independent contractors sign a contract with a client, it’s supposed to act as an agreement that they’ll deliver on their promise and get the job done within the given timeframe. While for the most part this is good business practice for both the client and contractor, it can turn into a sour experience pretty quickly if the contractor is not able to deliver as promised. There have been cases where a delay in the performance of service has led to hefty lawsuits that have left independent contractors financially broken.

However, there’s an easy way to avoid such circumstances i.e. with independent contractor insurance online. If you’re wondering how exactly this sort of insurance can help you in a financially devastating situation then read on:

Covers Your Property

Choosing an independent contractors insurance online can help you avoid certain financial scenarios that affects your ability to fulfill a contract commitment with a vendor or client such as a fire, theft, natural disaster or vandalism that occurs on your property. Getting insurance that covers your property is not hard, most insurance policies designed for independent contractors already cover this.

In addition to covering your tangible property, if you have cyber files, intangible assets or equipment that is equally important for your business operation, then this insurance protects you against any damage to them as well.

Covers Your Business Vehicle

Apart from your business property, the next most important thing is probably the vehicles that you use to carry out your daily work. There are plenty of instances where your vehicles can suffer damage due to any number of reasons.

There are several commercial auto insurance options whose sole purpose is to protect the vehicles of independent contractors in the event of any damage when at work. These cover damage that occurs to the vehicle, irrespective of the amount.

Employee Accidents

Perhaps the most important part of any organization, whether it’s a corporation or an independent firm is the workforce. Similarly, independent contractors rely on their employees to ensure profitable returns. But there’s always a chance that your employees may suffer from accidents or injuries while on the job.

There are several independent insurances that cover the damages that may be accrued by the workforce. Additionally, it covers the medical payments of your employees regardless of whose fault it was.

Working as an independent contractor offers many benefits, but it’s important to consider the potential risks and protect your business, yourself and ultimately your reputation as a contractor. 

 

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Why Independent Contractors Need Insurance