What Kind of Insurance do I need as a Contractor?
We all think of a contractor as a skilled, jack of all trades worker who can do anything from redoing your kitchen cabinets to building a garage. Although this isn’t wrong, there are many different types of contractors. Contractors come from almost every skill set known to man. With how much the work landscape has advanced over the years, there are almost as many white collar contractors as there are blue collar contractors. Although most contractors work for a company, they are technically self-employed individuals. For every type of contractor, there is an insurance plan that will keep you covered.
Errors and Omissions Insurance
If you are a contracted worker providing services for a company, Errors and Omissions Insurance might be something to think about depending on what you are doing. Since you are a contracted worker, you are your own business entity and need to protect yourself. Errors and Omissions (E&O) Insurance or Professional Liability Insurance (PLI) as it is commonly referred to, is coverage used to help protect the individual liability of professional advice and service in the event of a negligence lawsuit. Professional Liability Insurance is coverage that should be considered if you are a contractor working in a financial, medical, law, or technology field because one mistake can cost you.
General Liability Insurance
When it comes to working as a general contractor, having General Liability Insurance should be high on your priority list. General Liability (GL) Insurance is coverage that protects you from various claims such as property damage, bodily injury, personal injury, etc. In most business cases General Liability Insurance is also bundled with Property Insurance, but for contractors it is usually a standalone policy. Since general contractors are likely to be exposed to potential liability risks while on the job, it is always a good idea to have General Liability Insurance coverage, especially if you have a team working for you.
Health and Disability Insurance
As a contractor, you may work for a company but they are not your employer, and because of this you will not receive any benefits the company may offer such as Health or Disability Insurance. Having Health Insurance is very important because it provides coverage for doctor visits, prescriptions, medical tests, etc. The same goes for Disability Insurance, especially for general contractors due to the nature of their work. Being a general contractor is a very labor intensive job that comes with the possibility of serious injury. Although we don’t want to think about getting hurt on the job, it is a reality that many face. Having adequate health and disability coverage gives you one less worry in case you are injured while at work.
Working as a contractor can be very rewarding. As a general contractor there will always be a demand for your services depending on what trades you are skilled in. Contracted employees are needed as well because these individuals have the ability to work as consultants for companies and can offer a unique insight from a company outsider. Although going to work is your number one priority as a contractor, having proper insurance coverage should be right up there on the list so you remain protected.
If you are a contract worker and are unsure of what the best insurance for your situation is, contact the professionals at Ion Insurance today!