What is contractor insurance?

Like any business, independent contractors need insurance to protect themselves financially. What type of insurance you need depends on the type of work you do. Some types of independent contractors include the following:

• Independent construction contractors
• Freelance writers, editors and graphic designers
• Repair people, plumbers, carpenters, electricians, painters
• Accountants and financial planners
• House and carpet cleaners
• Independent hair stylists and salon professionals

Contractors are like any business. You need property and general liability insurance to minimize the basic financial risks of running a business. Additionally, contractor insurance includes coverage designed for specific industry risks. Our agency can find a customized policy that includes coverage most suitable to you.

If you are hiring contractors, you want them to have contractor insurance. Insurance you carry as a business or homeowner may not protect you from liability for a contract worker. This can expose you to lawsuits if a worker gets injured at your business or home.

What types of contractors insurance are available?

There is a wide variety of contractor insurance options. Here are common coverages for independent contractors.

• Bodily injury and property damage: This coverage is for contractors who work with heavy machinery and need to be prepared for accidents due to power tools and other hazards.
  
  
• Professional liability: For contractors who provide consulting and advice, this coverage can protect you from liability risks due to losses a client may experience. It protects your business’s finances if a client accuses you of errors, whether due to mistake or negligence.
  
  
• Commercial vehicle: Any vehicles owned by your business must adhere to state auto insurance laws. You can also protect your vehicles from various damages.
   
• Builder’s risk covers property and raw materials while construction is underway. This type of policy is often written per project.
  
  
• Workers compensation: Independent contractors may or may not need workers compensation. This coverage compensates employees for medical expenses and lost wages after an on-the-job injury.

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