General liability insurance is an essential part of your business insurance policy. It protects small businesses, including independent contractors, for several liability claims. Also, many customers require contractors to carry liability coverage to be eligible for contracts and agreements.
Continue reading to learn the importance of general liability insurance for independent contractors, its cost, and how a contractor can purchase this coverage.
Contractors are at a high risk of being sued and need comprehensive insurance coverage to protect themselves and their businesses to avoid paying for liability claims from their pockets. Accidents can happen anytime, even with the most efficient risk management plans. Not having requisite liability coverage may lead to substantial financial losses for your business.
We will discuss why general liability insurance is essential for your contractor business.
General liability insurance for contractors secures your business against liability claims that may include bodily injuries, property damage, and advertisement injury. If the aggrieved party sues you, the legal costs and the settlement amount, if you are found liable for the incident, are covered by this insurance.
Your job opportunities grow if you have general liability insurance for contractors as part of your business insurance coverage. Your clients are reassured that with the insurance, you have the resources to pay for any mishap-related damages caused by you. Also, many clients lay it down as a pre-requisite before you sign a contract with them.
Different states have varied liability insurance-related guidelines and business regulations that you must comply with. You should know your state’s requirements and accordingly buy the required coverage.
Since independent contractors' work varies based on their profession, the potential risk factors also differ for each. However, for example, while the risks for a construction contractor may vary from that of a graphic designer, they both may face liability charges for an accident at work if someone is injured or suffers property damage or any other loss.
Regardless of your business type, having general liability insurance for contractors is vital.
The general liability insurance coverage cost for contractors depends on several factors, such as:
While it has been established if you are an independent contractor, you must have general liability insurance for contractors; there are different ways to get the coverage. They are:
If you are an independent contractor in Southern California looking for the right general liability insurance, you can be assured of being offered the best coverage for your unique requirements by our team at Knight Insurance Services. For more information, contact us today.