Small Business Owners Should Have Independent Contractor Insurance in Austin TX

by | Apr 26, 2016 | Insurance

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In certain situations, one is expected to provide certain things before they can participate in an activity, and nowhere is this more true than in small business ownership. When a small business hires a contractor, they should choose one with Independent Contractor Insurance in Austin Tx. This type of insurance can protect a small business owner from being sued because of a worker’s on-the-job injury. Here, business owners can learn the value of insurance for independent contractors and other third parties.

Getting General Liability Coverage for Independent Contractors

In most places, general liability insurance is not legally required for small business owners and contractors. That means that even though a business already has insurance, they may not be covered if they hire an uninsured contractor. Business owners can work around this by adding the contractor to their coverage for the job duration or longer. While this step is costly for business owners, and it increases their responsibility, it can give additional reassurance in dealing with certain types of contractors.

General Liability Insurance for 1099 Contractors

Some small business owners wonder why contractors need general liability coverage, especially if they already have this type of insurance. Typically, employers aren’t held liable for acts committed by independent contractors, but laws vary by jurisdiction. Certain situations, such as those involving dangerous activities, have different effects on employer/contractor relationships. In all cases, it’s best to protect the business with liability coverage from Perdue Insurance Group.

Contractors without liability insurance may face high court fees and legal expenses if they are sued because of property damage or personal injury. Even if the small business is not responsible, the owner will still have to participate in litigation. Business owners without general liability coverage risk losing clients, jobs and other opportunities if the contractor cannot afford to pay damages.

Risks Involved in Omitting Liability Coverage

The risks involved in having insufficient liability coverage vary depending on the size and type of business being insured. A web designer faces different liabilities than a bathroom remodeling contractor, but both businesses can be covered by Independent Contractor Insurance in Austin Tx.

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