What you Need to know about Insurance as an Independent Contractor
Being an independent contractor is a great way to add some variety to your career, and it is also the best way to be your own boss. But if you have become used to working for another company and decide to become an independent contractor, then you should realize that your insurance needs will change because you are the one in control of your own business now. There is no need to panic when it comes to insurance for independent contractors; you just need to learn how to be prepared to protect yourself.
Does your job as an independent contractor require you to use your personal vehicle for work purposes? Did you know that if you get into an accident while working and do not have the proper insurance then you will be responsible for the damages? People forget that driving a personal vehicle while working requires commercial auto insurance to have full coverage. It is an easy detail to overlook when you are an independent contractor, but it can also be a costly mistake to make.
Business Liability Insurance
When you are working for a client as an independent contractor, you are more than likely not covered by that client’s liability insurance. In reality, one of the reasons companies hire independent contractors is to avoid paying the kind of insurance they would have to pay if you were an actual employee. To protect your independent contractor business, you need to make sure you have your own business liability insurance that will cover you when something goes wrong.
As an independent contractor, your clients do not have to provide you with any kind of health insurance at all. Making sure that you have the necessary amount of health insurance is your responsibility, and it is something you should take very seriously. Take the time to shop around for good health insurance that will not only protect you when you get injured, but will also help pay for recovery costs as well.
Lost Income Insurance
Being an independent contractor involves many risks, including the possibility that your client will not honor a signed contract. When you go into a negotiation with a client, you need peace of mind knowing that if your client backs out on a signed deal, you will still get compensated. Many businesses utilize lost income insurance to protect against such possibilities, and you should do the same for your independent contractor business.
Independent contractors require risk management services in the same way that companies and larger corporations do. When you are an independent contractor, you are an island unto yourself and you must be able to take care of all of your own insurance needs. With the help of a professional risk management organization, you can have all of your areas of risk identified and have insurance put in place that will give you peace of mind.