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Liability Insurance
General Liability Insurance For Independent Contractors
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[QUOTE="Princwill Oba, post: 524, member: 36"] If you are an independent contractor, you may be wondering whether you should consider purchasing general liability insurance. In this article, we'll discuss the cost of this type of coverage, the types of coverage available, and the rates and exclusions of each. Taking the time to read this information will help you determine the best policy for your needs. You'll also learn more about the types of exclusions and limits. Read on to find out how to protect yourself with general liability insurance. [HEADING=1]Cost[/HEADING] While many construction businesses and independent contractors pay less than $70 a month for their general liability insurance, smaller contractors are likely to pay a little more. For example, an independent marketing consultant may pay around $300 a year for professional liability insurance, which is also known as errors and omissions insurance. Professional liability insurance rates vary widely, and they may be significantly higher for an architect than for an engineer. Another factor affecting insurance costs is the number of claims filed in the industry. If there are many claims filed in a given industry, insurance providers may raise their prices, while if there are few, they might decrease them. The cost of general liability insurance for independent contractors depends on many factors, including your payroll and annual revenue. If you have a steady income, you can choose a general liability policy with a monthly payment of $17, which works out to about $204 a year. A general liability policy with Thimble can be paused for a month during slow times, and resumed once you have more work. You can also purchase a policy for each individual job you do. However, the website does not mention any discounts for using Thimble. [HEADING=1]Coverage limits[/HEADING] The first thing to consider when buying general liability insurance for independent contractors is what it covers. Typically, it covers damages to property and bodily injury during the coverage period, while claims-made policies only cover claims during the policy period. As a result, contractors should focus on acquiring occurrence coverage, which will ensure that they have adequate coverage during any possible incidents. However, the amount of coverage they purchase will depend on the type of activities they do. General liability insurance for independent contractors can protect independent contractors against high legal costs. In many cases, clients will require that independent contractors purchase general liability insurance to provide proof that they are adequately insured. It also gives them peace of mind that they won't have to foot the bill should a claim arise. And, when you're working as an independent contractor, clients will likely demand that you have general liability insurance, so you may as well get one now. [HEADING=1]Exclusions[/HEADING] In many cases, the terms "independent contractor" and "employee" are used synonymously. However, there are exceptions to these general liability insurance exclusions. For example, an "employee" exclusion may be expanded to include claims made against the employer for "bodily injury." In the latter case, the exclusion applies to both the direct employer and the employee. Choosing a general liability insurance policy that covers independent contractors can be tricky. While an "employee" exclusion may reduce insurance costs, it isn't necessarily a good idea. It may bar coverage for the employee of a subcontractor and may result in unwanted repercussions for the owner of the contract. In the worst case scenario, the Owner/General Contractor has to foot the bill for a subcontractor's disclaimer, which leaves him or her exposed to more exposure than a 1970s "streaker" at an Academy Awards program. [HEADING=1]Rates[/HEADING] General liability insurance is necessary for anyone working with third parties, and independent contractors are no exception. Even if you are working for a small company, you may encounter situations where a client sues you for a mishap caused by your negligence. This type of policy is also referred to as a "floating" policy. This type of coverage is important for all types of businesses, but it is particularly important for contractors. It protects you financially against lawsuits and can be quite expensive. The premiums for general liability insurance for independent contractors are determined by several factors, including the type of business you run, the number of employees you have, and the total cost of materials and supplies that you use. Contact an agent with American Family Insurance to determine the type of coverage you need. Keep in mind that state laws may differ from those of other states, and some coverage options may not be available in your state. It is also important to consider the type of coverage you need, as this will affect your premiums. [/QUOTE]
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