Like many contractors, you got into business to be your own boss. Rather than answering to a higher up or following corporate guidelines, you decided to be independent and bring your expertise directly to your clients.
The one downside to being an independent contractor is handling insurance for your business. While your service might be seemingly low risk, or you might be an expert in your field, it never hurts to be prepared. With contractors insurance, you can protect your business and your clients from possible financial headaches.
If you need some more convincing, here are five specific reasons why contractors need insurance.
Account for “On the Job” Accidents
When your work involves visiting clients, or vice versa, there’s always a possibility of an accident leading to disaster. If you’re left uninsured, you could be sued for a variety of reasons while on the job. These can include:
- Slip and fall accidents
- Product liability
- Injury caused by another party
- Property damage
- Slander and libel
Without general liability insurance, you could be paying an immense amount of money in legal and medical fees. Without that protection, your independent business could go under overnight. That’s why it’s best to cover your bases for an unlikely accident.
Defend Yourself From Client Mistakes
When working with clients, you want to provide as much help and information as possible. While your helpful advice may make sense to you, it may not always work for the client. This is especially true for contractors in the insulation or construction industry.
When a client tries to apply your advice and something goes wrong, be it property damage or personal injury, their mistake can come back to you. If they believe the problem was with your advice, then you could face legal charges for professional negligence.
With errors and omissions insurance, you can help pay for these legal fees, defending your advice and professional integrity. No need to break the bank for a misunderstanding.
Protect Your Employees
If your contracting business is starting to grow, you might have a couple of employees under your belt. While their help is beneficial, you increase your risk of “on-the-job” accidents.
When someone working under you is injured on the job, either working on a construction project or visiting a client, the bill will probably come to you. These bills include medical bills, physical therapy, disability income, and even compensation for the employee’s families.
With worker’s compensation insurance, you can protect your employees from going to a job without a safety net. You also defend yourself from burning through money to ensure they get back on their feet.
Secure Your Business Vehicles
Many contractors in a variety of industries own the equipment they use. This includes work vehicles like vans and trucks that go out to job sites. Unfortunately, you can’t account for everything and accidents are bound to happen.
If you live in Virginia, then your vehicle is required to be insured before it can be registered with the DMV. But, without commercial auto liability insurance, you could easily be out of a vital work vehicle if something were to happen at the job or on the way to it.
Promote Your High-Quality Work
The benefit of being an independent contractor is the direct contact you have with clients, putting a friendly or trustworthy face to your work. The problem is that potential clients in Richmond is that they have hundreds of local options, and you’ll need a way to stand out.
Rather than simply promising good work, show you care about quality by insuring your business and employees. An insured business is the sign of a well-run business. When potential clients talk with you, they’ll see how much you care for high quality work.
Local Contractor Insurance in Richmond, VA
Being an independent contractor can get stressful. Why not work with a partner who’s got your back?
Sanford Insurance offers comprehensive insurance plans for contractors in Richmond. We work with you to create customized plans for your small business, protecting your important assets and equipment.
Contact us to get your free quote!
Source:
https://www.legalnature.com/guides/do-independent-contractors-need-insurance
https://www.landesblosch.com/blog/hiring-a-contractor-without-insurance-what-are-the-risks/
https://www.equipter.com/equipter-articles/contactor-insurance