Liability Insurance

Archive for November, 2009

Before hiring a contractor, it is always a good idea to get at least three quotes so you know what your options are. The size of the job is irrelevant, it is always a good idea to cover yourself with contractor liability insurance.

This can usually cover you as long as your contractor liability insurance and licensing are sound in the event of a change of control employment contract. It would also be a good idea to check the contractor’s background and references and the Better Business bureau to make sure that they have a reliable reputation.

Some companies cover contractors as well as permanent employees in their policies. However, it is vitally important that you, as an employer correctly classify your employees and contractors as different tax rules and insurance policies apply to both. For example, employers working with independent contractors must file change of control employment contract for any independent contractor under their employment. If an employee is misclassified as an independent contractor, you could be held liable for contractor liability insurance policy for that employee.

Many different organizations exist in different regions that specify in providing insurance coverage over hired independent contractors, sometimes in addition to employee liability insurance. These programs can protect your business in the event of accidents or damage done by the contractor. Rates usually vary according to the type of work being done in addition to payroll expenses and the amount you need to insure the contractor for.

Usually you can get quotes from their websites after filling out a very short form. A few of them are listed below:

Valley Agency Insurance

http://www.valley-agency.com/contractor.html

Florida Contractor Insurance

http://www.fciz.com/program-tradecontractor.asp

Wise Insurance

http://www.wiseinsuranceagency.net/contractor.html

PA Insurance Rates

http://www.painsurancerates.com/contractor.html

Thoroughbred Associates http://www.thoroughbredassociates.com/contractor.html

All-Options.com

http://insurance.alloptions.com/general-contractor-liability-insurance.asp

Businesses are typically required to make a down payment on independent contractor liability insurance or any other insurance policy, followed by approximately 8 or 9 consecutive monthly payments.

Just like you take care of your regular, long-term employees, it is important to provide yourself with some sort of protection in the event that an independent contractor causes damage to a premises during a job or takes legal action against you. You can do this with contractor liability insurance. It is relatively rare, but the risk is always present. You are responsible for what anyone under your employment does; it could save you money and protect your business in the long run.