Do Independent Contractors Need To Have Liability Insurance?
Independent contractors are people or companies that are not directly employed and are only engaged to perform a particular work or provide services to a general contractor. They are responsible for taking care of themselves and their employees, providing benefits including social security and even medical taxes. And although some other requirements can be fluid due to the fact that they are operating small scale and mostly under bigger contractors, they would still need to insure themselves in preparation for possible liabilities for the benefit of their people and their business. Why then do independent contractors need to have liability insurance?
Liability Insurance In Times of Emergency
It is no secret that the construction business is prone to injury and accidents. While these can be prevented using precautionary measures, people engaged in this business are still at high risk. And since being proactive is the best practice you can do to ensure that you are prepared for whatever comes your way, you would need liability insurance to answer whatever medical problem resulting from injury or accidents you encounter. And since medical expenses are not included in the budget for any project, it is best for you and your employees that there is an insurance you can count on to avoid losing money and any legal problem that can stem out from this. This will work as long as the cause of the accident is not of professional negligence and not deliberately done.
When Errors and Problems Happen
Independent contractors do their utmost best to avoid mistakes and do exactly what the general contractor or client requires. And even if standards are ensured to be always at par with the given benchmark, mistakes are still possible especially during times when workers are not supervised. Since mistakes and errors can cause a lot of money to fix and redo, a contractor’s insurance can cover the expenses so the project can continue without having to shell out additional money that could drain your budget. This is also important as you cannot allow the mistake to linger because it can strain the professional relationship between you and the contractor and client. Another benefit of your insurance is to cover the money you will spend if a piece of particular equipment or device is broken and you would need a replacement right away. These things that are not included in the planning can be covered for you by getting the appropriate insurance that will provide this. Insurance is not just a lifesaver but an effective contingency plan as well.
Covers Legal Problems
The aforementioned situations can be covered by liability insurance but there are instances when situations get sour that injuries and mistakes result in legal battles. If by any chance a person got in an accident and decided to sue you, all the medical expenses and the legal fees to face the legal suit will be covered. This escalates to court battles when settlements are not agreed upon and the other party wants to demand more. Your legal defense fees will be taken care of by your insurance company including the damages awarded to you.
Safeguarding from Any Crisis
A crisis may arise and can be beyond the control of any person. These can impede operations and halt the generation of income needed to pay for worker’s compensation. Without the assurance of getting money from your client, you can turn to your insurance to provide the necessary fund to pay your obligation. Plus, clients will be more inclined to work with you if you have your own liability insurance. This is often a requirement needed to seal a contract or transaction.
There really are a lot of perks brought about by liability insurance to an independent contractor. It’s not only good for the business but beneficial for everyone involved too. Surely, everyone will be assured and protected working with you as well as beneficial for workers who will work for you.