Does Commercial Insurance Cover Independent Contractors?

The new “gig economy” has grown the numbers of independent contractors in Altamonte Springs, FL and all across the country since the Great Recession. While some industries have addressed the question of insurance coverage for contractors, others may need to take a second look at the potential insurance needs for themselves and their workers. Accidents and injuries can happen in any industry and profession. Whether you need insurance for your independent contractors (or whether you need insurance as an independent contractor) depends on the type of work involved and the amount of risk you are comfortable taking. 

Businesses and Independent Contractors: Why You Should Get Insurance  

If your independent contractor has no insurance, you could be held liable for their sub-par, code-violating work, accidents, or illegal conduct. Most of the time it is appropriate for both the independent contractor and the business to carry general liability insurance. This will help you, no matter which side of the fence you are coming from, in the event that you face a lawsuit. Independent contractors have the same liabilities as any other business.

General Liability Insurance 

GL insurance protects you in the event of injuries, equipment breakage, and property damage on the job site. It protects both the independent contractor and the business contracting with them.  

Errors and Omissions Insurance 

This insurance covers overlooked items and professional mistakes and is crucial in professional industries such as software development, law, medicine, and engineering. It generally protects you against claims for legal expenses in the event a lawsuit is brought regarding unacceptable work or work not performed, including: 

  • Professional mistakes 
  • Failure to deliver promised goods 
  • Professional negligence 

Commercial Auto Coverage 

If your independent contractor drives on your behalf as part of a contractual project or job, you may be held liable in the event of an accident or collision. Commercial automobile coverage from Blanchard Insurance will protect both you and your independent contractor while they provide driving services in the course of their work.