Contractors’ insurance

Business insurance for contractors

As a contractor you’re free to take on the contracts you want, when you want. But there’s a drawback to being independent. If something goes wrong, it’s down to you to fix things. Or pay up if you can’t.

It could be an unhappy client who thinks you made a mistake. An accident in the workplace they say is your fault. Or a cyber-attack that paralyses your website and leaks customer data.

Without the right insurance any of these incidents could cripple your business. And the more contracts you take on, the bigger the risk of something going wrong.

Protect your work, your bank balance and your reputation with contractor insurance. If you find yourself in a fix, it’ll take care of the costs of a legal claim. And pay medical bills and damages if they’re due too.

• Who needs contractors’ insurance?

  Do you have paying clients?

  If you answered ‘yes’, then professional liability insurance (or errors and omissions as it’s also called) is essential. Because having paying clients makes you a professional. And as a professional you can be sued for negligence -- even if there are no grounds for the claim.

  If you find yourself in a legal dispute with a client, professional liability insurance can hire you an attorney. And pay your defense costs plus compensation, too, if it’s due.

  Do clients visit with you? Do you go to their offices or work on-site?

  If the answer’s yes to one, or both, of those questions, you need general liability insurance for contractors.

  That’s because if a customer trips and injures themselves, or you damage their property, they can sue you. And without insurance you’ll have to pay for medical bills, legal fees and damages.

  General liability insurance can cover the costs of these claims. Including your legal defense fees, the cost of medical treatment and repairs or replacement of damaged property.

  Add equipment cover to your general liability policy, and the tools of your trade are protected from loss or damage, too.

  Do you use email? Own a website? Store your clients’ data?

  If the answer’s yes to any of those questions, you need cyber liability insurance. With less cash to spare for tough cyber defenses, small businesses like yours are easy targets. And with cyber-crime on the up, it’s more a case of when -- not if -- you’ll be hacked.

  Cyber insurance can’t prevent an attack. But you’ll get the technical and financial support to get your business back on its feet again fast.

• What does contractors’ insurance cover?

  Whether you’re a building or roofing contractor, electrical contractor or IT contractor, there’s a policy to cover pretty much everything you need.

  Professional liability insurance covers the cost of claims you made a mistake, or failed to deliver what you contractually promised. If clients pay you for advice or a service, this policy is a must-have. Because clients can sue you even if the claim has no grounds.

  General liability insurance covers damage to another person or their property. You can add business equipment cover to your policy too so it’s protected in your office, out on-site and on-the-road.

  Cyber liability insurance covers the costs of a cyber attack. As well as giving you the financial resources to recover from the attack, it’ll give you the technical support to recover from one.

  Workers’ compensation insurance is required in most states if you anyone works for you. That includes sub-contractors. But it’s a good policy to have anyway. It protects your income and pays your medical bills if you’re injured on the job.

  But if you’re not sure what contractor liability insurance you need, and want to talk through your options, call us. We’re always happy to help. And we’ll get you the right coverage, fast

• How much does contractors’ insurance cost?

  Independent contractor insurance costs vary.

  The price you’ll pay is affected by things like the industry you’re in, your annual income and payroll, as well as by the amount of coverage you need.

  But you can pay in monthly, or quarterly installments, or in one lump sum. Whatever suits your budget best.

• Do contractors need workers compensation insurance?

  If you’re a general contractor or a subcontractor, your contract may require you to have workers’ compensation insurance. The same applies to independent contractors.

  Because health insurance doesn’t typically cover work-related incidents, it’s a good policy to have anyway. Without it, if you, or someone who works for you (like a sub-contractor) gets injured on the job, you could find yourself facing a hefty bill for medical treatment, compensation and lost wages.

  And if you’re the one who’s injured, it means your income’s protected and your medical treatment covered while you’re laid up.

  For more information read our blog post: Workers compensation for contractors & subcontractors: Who needs it?