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What Kinds of Insurance Should Independent Contractors Have?

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Whether you are a specialist or provide general contracting services, it is essential to safeguard yourself and your organization with the appropriate insurance. There are numerous policies and coverages available. It can get difficult to determine which ones are ideal for your company.

Common Contractor Protections

Among the most prevalent and essential insurance coverage for contractors are:

General Liability

General liability insurance protects against bodily harm, property damage, and personal or advertising injury resulting from an independent contractor's normal business operations. For instance, if a customer is injured after tripping over a piece of equipment, the contractor's general liability insurance will cover the accompanying medical expenditures. This insurance also covers claims of physical damage, libel, slander, and infringement of intellectual property rights.

Commercial Real Estate

Whether or not you have a physical location, commercial property insurance may safeguard your business by protecting its physical assets against damage caused by fire, wind, hail, lightning, smoke, theft, and vandalism.

Professional Obligation

General liability insurance covers non-professional negligence, whereas professional liability insurance covers professional negligence. This means that it covers costs associated with an accident directly related to the contractor's specialty or service. For instance, if you install a sewer system and faulty screws subsequently cause it to explode, the client may sue for professional negligence in order to recover damages. Professional liability insurance can assist with any resulting damages and legal bills.

Commercial Auto Insurance

Most contractors commute between clients via automobile. Even if you use a personal vehicle for business, you may require commercial auto insurance. Personal auto insurance plans typically exclude coverage for incidents that occur while the vehicle is being utilized for business purposes. Contractors purchase commercial auto insurance for this reason. This insurance provides many of the same protections as a personal policy but is tailored to a commercial vehicle.

Combining Protections

You can often combine coverages to save money and simplify your insurance. A business owner's policy is a frequent bundle used by contractors, combining general liability and commercial property insurance into one complete coverage. These policies are also adaptable, allowing you to add different coverages based on the needs of your business.

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