Working as an independent contractor can give you more freedom compared to being employed by someone else. Essentially, you are your own boss. This allows you to choose which clients you’d prefer to work for, what kind of jobs you want to take on, and how much you’re willing to earn. However, it also comes with a few more risks compared to working as an employee. Because of this, you’re going to need to consider getting several insurance policies to ensure that you are financially covered in the event of something going wrong.
Liability Insurance
General liability insurance for contractors is a must if you are starting out on a new independent career. If somebody makes a claim against you that you are ultimately held liable for, this can get seriously expensive for you. You may be held liable to pay damages, legal fees, and several other expenses which could even leave you in the red financially and struggling to keep your business going. The right general liability insurance for contractors will pay out instead, allowing you to continue with your life without financial woes.
Errors and Omissions insurance
Depending on the type of work that you do, errors and omissions or professional indemnity insurance is a policy that is worth having to protect you from any complaints against your work. No matter how careful and conscientious you are with your work, a simple and easily made mistake could become your downfall if you do not have the right insurance policy. For example, if a client loses money and blames advice that you have given them, or work you’ve completed for them, this insurance policy can help you out.
Equipment Insurance
Chances are that as an independent contractor, you are going to have several pieces of equipment that you will rely on to get the work done. Whether you use specialist equipment to complete your job or simply work from a laptop or PC, having it insured is important – as without it, you’re not going to be able to earn a living. With the right insurance policy, you can have peace of mind that if your equipment breaks down, you can claim on your insurance to have it repaired or replaced easily without making a loss.
Business Premises Insurance
Many independent contractors today work from home. However, you might prefer working from an office, or need an office to work from, so that you have somewhere to meet with clients. If this is the case, then getting the right insurance policy for your business premises is vital. The last thing that you want is to be unable to go to work, or unable to meet clients for a while as damage to the building has caused it to become unusable, and it’s expensive to fix. Make sure that your insurance policy covers you for natural disasters such as flooding and hurricanes, fire, and criminal damage.
No matter what kind of services you are planning to offer as an independent contractor, it’s worth getting several insurance policies to ensure your peace of mind regarding money should anything go wrong.
