Independent contractor insurance protects you from unexpected legal expenses, lawsuits, or other business disruptions within your contracting industry. Without such insurance, such losses can cost hundreds of thousands of dollars… reported by some estimates by the Insurance Journal, including general liability insurance (which covers work-related injury and illness) and product liability (which cover product damage) on items you install for your customers. Additionally, it may be necessary to have a separate business asset insurance policy for each and every project you perform.
Have limited coverage
Contractors who hire out their services to other companies often have limited coverage. This is unfortunate because it is important to have the right kind of protection if you are running an independent contracting business. An example of that type of business is a home-based business. If you run your business from your home, having a separate business asset insurance policy might be necessary, and this should be considered in conjunction with an independent contractor insurance policy.
Take a close look at how they assess your business
When it comes to an insurance company, however, you need to take a close look at how they assess your business. If you’ve never had to deal with an insurance agent before, there’s no guarantee that he will be fair or provide you with all the coverage that you need.
Investigate the insurance company’s reputation
As a general rule, you will want to investigate the insurance company’s reputation before agreeing to a policy. To do this, you should talk to a few other contractors who might have recently dealt with an insurance agent. You can also try asking questions of some insurance brokers to determine how the agent values your company’s business and whether or not you would like to work with that agent again.
It is a good idea to find out the company’s claims process and to learn whether they require you to submit any type of proof of loss before they will pay out claims. The claims process varies from one insurance company to another. Many require that you submit financial statements, which typically come attached to the policy. Others require no more than a letter from a third party that you have hired for the work, and a few others don’t require any proof of loss at all.
Once you’re satisfied that you understand the company, you should also make sure that you are happy working with that company in the future. This can be done by reading up on the company’s ratings and asking for references of satisfied contractors. If you have any doubts about the company, consider working with another insurance company that may meet your needs better.