How independent contractor insurance can help your small business

January 09, 2015

Contractors are a great way to grow your small business. Having contractor insurance can help protect you and your staff, and ensure that you’re not taking on more risk when you use them.

You've built a healthy consulting business and understand that there comes a time when it’s not possible for you to do everything as well as it needs to be done.  Business development, operations, marketing, fulfilment, project delivery – try being the only one doing all this, and sleep will quickly become a thing of the past.

The answer for many start-up entrepreneurs is to outsource work.  Once you’ve found a reliable, affordable independent contractor, you can ramp up sales without worrying about how you’ll deliver on those contracts.  Excellent!  You’re on your way to the Big Leagues.

How will contractor insurance help my small business?

In your excitement over your well-managed growth, don’t forget to review your insurance coverage.  Your start-up insurance may need to be upgraded, but it’s possible that your professional liability policy covers temporary staff and independent contractors for work they perform under your direction.  Also known as errors and omissions insurance, or E&O coverage, contractor insurance provides protection from claims of negligence or the failure to perform your professional duties – two things that may arise when you employ independent contractors.

Get coverage for independent contractors

To easily prove to your clients that your business has insurance, you can request an ACORD certificate of insurance from your insurer. Keep in mind that Workers’ Compensation insurance, while a necessity if you have staff, does not cover independent contractors.

Tell us! Do you use contractors to help reach your business goals? Do you have coverage, like E&O insurance, to make sure your business is protected?