Three Reasons to Buy Liability Insurance as an Independent Contractor

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Although it is legal to work as a contractor in California without insurance, at least in the private sector, it is not advisable. In the past, most contractors have been large enough that they always carried insurance, but today, there are many small operations that do not carry this type of insurance. There are many reasons why this is true, but if you are a small contractor, you should consider the advantages of getting insurance.

Three Reasons to Buy Liability Insurance as an Independent Contractor

It helps your business’s reputation

Even if you are a one man operation working in residential areas, when people see that you carry insurance, it stamps your business as legitimate. No matter how well you promote your business, without carrying liability insurance, many residential customers will look at you as a glorified handyman. It is possible that the price you pay for a liability policy will be more that offset by an increase in business.

Liability insurance protects your assets

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Many people working as independent contractors may not have a lot of assets and think that it makes them lawsuit proof. However, it doesn’t take a lot of wealth to be a target of a lawsuit for a job that has gone bad. It may not even be your fault, but if you lose in court, it could be costly. Even the equity in your home could be enough to attract a trial attorney. Still, even without assets, it is possible to have a judgment in favor of a homeowner hanging over your head in the event that you start to make a lot of money as a contractor. It is best to insure yourself against lawsuits.

It is not as expensive as you might think

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There are many california contractors insurance companies. One way to get a good price is to simply get several quotes. You may be surprised at how cheap this type of insurance can be. In addition to getting competitive quotes, many insurance companies offer discounts for bundling your insurance policies. You can get commercial insurance for your truck, workers’ compensation insurance for your employees and even health insurance if you wish to provide this benefit to your workers. The more policies you carry with the same company, the lower the cost of insurance will be.

There are no good reasons to avoid contractor’s insurance, but there are many good reasons to buy a policy. The reasons listed above are only a few of them.

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Three Reasons to Buy Liability Insurance as an Independent Contractor
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