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Types of Independent Contractor Insurance

When working as an independent contractor it is important to protect yourself with different types of insurance. Some types of independent contractor insurance policies that should be considered include business owner’s insurance, auto, health, liability, and worker’s compensation.

Business Owner’s Insurance

There are several types of independent contractor insurance policies for business owners available. Most insurance companies will allow an individual to customize their policy to meet specific needs. These plans will provide protection if anyone is hurt while on the job site or if any property is damaged during your time on the job. Along with this basic coverage, there is additional coverage that may be added on, such as short-term pollution coverage, liability for limited property of others and replacement costs for equipment that may be damaged or stolen.

Commercial Vehicle Insurance

Business owners who use commercial vehicles will need to find a policy that will cover the vehicle while it is being used for business purposes. Most insurance companies will offer commercial vehicle insurance, which typically works the same as any regular car insurance policy. It is important to tell the company that the vehicle will be used for business purposes, as the policy will need to be specialized to cover this type of vehicle. Driving a commercial vehicle without the proper insurance can result in fines and the loss of your business license.

Health Insurance

Perhaps one of the most important types of insurance a business owner will need to acquire is health insurance. Being self-employed means that you will be required to find and pay for independent contractor insurance for medical purposes, on your own. Most independent contractors will need to take out a health insurance policy through a private insurance company. Individual health insurance policies are available through most major insurance companies. However, the costs of these policies tend to be high. One way to lower the costs of health premiums is to look for a group plan to join.

Liability Insurance

Depending on the industry, independent contractor insurance for liability may be required for your business. Independent contractors that provide construction work, including plumbing and electricity, will need to obtain a liability policy. Liability insurance offers the consumer protection should any work done by the contractor be faulty. Most states require individuals providing any type of building services to carry some form of liability insurance policy. The coverage provided by these policies includes contract reviews, job specification reviews, risk management, and builder’s risk.

Worker’s Compensation

Owning a business comes with many responsibilities, one of them being taking care of your employees. Worker’s comp insurance is another type of independent contractor insurance that provides benefits to your employees should they become injured or ill while working for your company. Each state has different laws about the required protection for workers, including the length of time the coverage has to be provided for and the amount of the benefits required. Worker’s comp insurance can save your business from unnecessary lawsuits should an employee become injured while working on one of your projects.

Working as an independent contractor will require you to provide all of your own insurance benefits that would otherwise be provided by an employer. It is important to have all of the proper protection in place for both the business and your health.