Contractors insurance provides coverage for independent contractors against claims from clients that are potentially liable. This is sometimes called Professional Indemnity Insurance or Independent Contractor Liability Insurance. The client would have to be able to prove that you were negligent before the insurer would pay their claim.
For a few qualified contractors who choose to work freelance, Contractor Insurance is required according to law. A contractor cannot provide professional service advice to a third party without it. This includes commercial companies and public establishments. For example, accountants, attorneys, financial planners, and architects need this coverage. The professional body that regulates each of these professions determines the type of General Contractors Insurance that is required. For instance, a building contractor would generally need to have Building Contractors Insurance.
Ok, it makes a lot of sense to use precaution as a contractor for circumstances where you give your recommendation and offering professional opinions exist. If your clients will most likely act on the advice given and or be swayed in their process of deciding, the possibility exists for potential liability. Following this assessment, you should probably have Independent Contractor Liability Insurance.
Your next step? Search for an insurance professional to discuss what your needs are. It is best to contact an Independent Contractor Liability Insurance dealer/ also known as a broker or an Independent Contractor Liability Insurance company. Talk about the aspects of the business and the potential exposure you have to liability pending that negligence would be proven.
Once you talk with the insurer about your needs, they will explain what the company has to offer. The tier of coverage that you will require will vary because it depends on your type of profession. The work you do and the type of clients that you deal with or plan to service determine it, also. In some situations, clients set the requirements of coverage that they want n place before a consultant should be considered for any assignments with their company.
As a professional, you are surely aware of the importance of maintaining a full set of records for your business. You will need to keep filed copies of your contracts for each job or assignment that you take. These documents will be vital evidence of the work that was performed; intended and completed. Keep in mind that the insurance underwriter will require your records if any claim is filed against you. As with most records, you should keep your files in the event they need to be pulled, for a minimum of six years. In addition, claims on professional negligence can be initiated far beyond the time that the service was completed.
Contractors insurance provides vital protection for a freelance consultant. You have to determine if insurance coverage is mandatory for your business. If so, contact a contractor’s insurance company to ensure that you have an adequate policy. It will be your decision to determine the value that you place on having coverage and a secure mind.
Ok, it makes a lot of sense to use precaution as a contractor for circumstances where you give your recommendation and offering professional opinions exist. If your clients will most likely act on the advice given and or be swayed in their process of deciding, the possibility exists for potential liability. Following this assessment, you should probably have Independent Contractor Liability Insurance.
Your next step? Search for an insurance professional to discuss what your needs are. It is best to contact an Independent Contractor Liability Insurance dealer/ also known as a broker or an Independent Contractor Liability Insurance company. Talk about the aspects of the business and the potential exposure you have to liability pending that negligence would be proven.
Once you talk with the insurer about your needs, they will explain what the company has to offer. The tier of coverage that you will require will vary because it depends on your type of profession. The work you do and the type of clients that you deal with or plan to service determine it, also. In some situations, clients set the requirements of coverage that they want n place before a consultant should be considered for any assignments with their company.
As a professional, you are surely aware of the importance of maintaining a full set of records for your business. You will need to keep filed copies of your contracts for each job or assignment that you take. These documents will be vital evidence of the work that was performed; intended and completed. Keep in mind that the insurance underwriter will require your records if any claim is filed against you. As with most records, you should keep your files in the event they need to be pulled, for a minimum of six years. In addition, claims on professional negligence can be initiated far beyond the time that the service was completed.
Contractors insurance provides vital protection for a freelance consultant. You have to determine if insurance coverage is mandatory for your business. If so, contact a contractor’s insurance company to ensure that you have an adequate policy. It will be your decision to determine the value that you place on having coverage and a secure mind.
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