Do Independent Contractors Need Business Insurance?

As an independent contractor, you may enjoy a flexible and rewarding career while contributing to key aspects of various projects in your community. However, independent contractors are part of one of the most dangerous industries: construction. Given the inherent risks on job sites and tight deadlines on which you may need to operate on, financial protections provided by business insurance should be a top priority.

What Types of Insurance Do Independent Contractors Need?

Business insurance and contractors insurance are both somewhat ambiguous terms that may refer to various coverages according to a commercial entity’s needs and exposures. As an independent contractor, your circumstances may be particularly unique. Working with a qualified insurance professional, such as those at Hanway Insurance, can help you nail down the right policies, such as the following types:

• General liability insurance

• Professional liability insurance

• Commercial property insurance

• Workers’ compensation insurance

• Business interruption insurance

• Tools and equipment insurance

• Commercial auto insurance

• Builders risk insurance

• Inland marine insurance

• Commercial umbrella insurance

Is Coverage Actually Required?

Although you may need various types of insurance to establish and maintain appropriate risk management and loss control efforts, formal obligations may vary depending on your exact situation. Your location, whether you employ others and how you conduct operations may determine if certain laws and regulations apply.

For example, commercial auto insurance is typically required for all businesses that use motor vehicles, including independent contractors. Even if you’re using a personal car, van or truck to help haul equipment or travel to job sites, this is considered business use and necessitates coverage.

Additionally, many clients may list insurance-related requirements for those with whom they enter into contracts and business agreements. Specifically, professional liability insurance is often required to reassure stakeholders regarding the possibility that you may not be able to complete work up to agreed standards.

We’re Here to Help

Contact Hanway Insurance in Oak Lawn, Illinois, today to learn more about contractors’ coverage options or to compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.