There is a wide variety of contractor insurance options. Here are common coverages for independent contractors.
Bodily injury and property damage: This coverage is for contractors who work with heavy machinery and need to be prepared for accidents due to power tools and other hazards.
Professional liability: For contractors who provide consulting and advice, this coverage can protect you from liability risks due to losses a client may experience. It protects your business’s finances if a client accuses you of errors, whether due to mistake or negligence.
Commercial vehicle: Any vehicles owned by your business must adhere to state auto insurance laws. You can also protect your vehicles from various damages.
Builder’s risk covers property and raw materials while construction is underway. This type of policy is often written per project.
Workers compensation: Independent contractors may or may not need workers compensation. This coverage compensates employees for medical expenses and lost wages after an on-the-job injury.