Contractor’s Insurance Policy: Independent Contractor Insurance Cost & Other Things To Look For

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Contractor’s Insurance Policy: Independent Contractor Insurance Cost & Other Things To Look For

By Zuma Insurance Services | March 7, 2018

contractor insurance policy

If you work as an independent contractor, having the right independent contractors business insurance coverage is essential in order to protect your livelihood. However, choosing the right independent contractor insurance for your business can be difficult. As you compare your options, and different independent contractor insurance costs, consider the information below.

contractor insurance policy

General Contractor Insurance Basics

Most contractors need to purchase general liability insurance to protect themselves and their clients from loss. General liability insurance protects contractors from all of the most common types of lawsuits they may face during their careers.

General liability insurance for contractors covers the following types of loss:

  • Bodily injury – In the course of the operation of your business, you or one of your employees may cause bodily injury. The costs of these injuries will be covered by your independent contractor’s liability insurance.
  • Illness – If an individual becomes ill as a result of your work, your general liability insurance will cover related losses.
  • Property damage – If you damage property in the course of your work, your liability insurance will cover the cost.

General liability insurance will also protect against losses related to intangible damage, such as copyright infringement and reputation injury.

If someone brings a lawsuit against your company, the insurance will cover all of the costs associated with the lawsuit, such as your attorney fees, court costs and any judgments or settlements awarded. Without this coverage, you would be forced to pay these expenses out-of-pocket. For many businesses, a single lawsuit can lead to significant financial distress and even bankruptcy.

contractor insurance policy

Things to Consider: Cost Of Contractor’s Insurance & More

As you shop for a contractor’s insurance policy, you should consider each of the following issues:

  • Breadth of coverage – Not all contractors insurance policies cover the same types of situations. Before making a choice, you should review the breadth of the policies’ coverages in detail to make sure the one you choose covers all of the issues you are most likely to face.
  • Coverage limits – Every contractor’s insurance policy includes limits to the amount of loss that will be covered. Higher limits provide better coverage, but they also come with a higher premium. For this reason, it is important to consider coverage limits carefully.
  • Price – The price of contractors liability insurance is an important consideration for any contractor. Although price should not be the only aspect of insurance coverage you consider, it is important to compare quotes on different policies to make sure you are getting the best deal.
  • Customer service – Having a good quality contractor insurance policy isn’t nearly as helpful to your company if your insurer offers poor customer service. Make sure the insurer you choose is available to answer your questions anytime you have an issue. You should also investigate the other services your insurer provides, such as free policy reviews.

Key Takeaways

  • Contractors insurance is an important investment for any independent contractor.
  • The purpose of contractors insurance is to protect against potential losses, such as those related to liability lawsuits.
  • Before investing in contractors insurance, you should compare your options carefully.

Contact Zuma

If you are shopping for contractors insurance, you need to consult an experienced insurance agency that understands these policies and can help you select the one that is best for your needs. At Zuma, we help businesses of all sizes to find the insurance coverage they need. Even after we have helped you find and purchase the right coverage, we will remain available to help you maintain your policies and make changes as your business evolves. Please contact us today to learn more about a specific business insurance product or to request a free independent contractor liability insurance quote.