Why Contractors Need Contractor Insurance

In today’s global economy many businesses are turning to the large workforce of independent contractors to help reach their business goals while not adding full-time employees. Typically when one thinks of coverage for contractors one thinks of construction and physical projects; however, making sure your contractors are covered with adequate insurance is just as important when you are hiring contractors for other services such as IT and consulting. If you are a business in the Newark, NJ, area and are wondering if your contractors are carrying adequate insurance, please reach out to an agent at E.S.T.I.R. Inc. who can answer all of your questions.  

It is essential to make sure your contractors have a general liability policy that will cover damages the contractor causes to a third party. In addition, a liability policy can also provide coverage for property damage caused by the contractor.

Another vital coverage to require when contracting with an independent contractor is professional liability coverage also known errors and omission coverage. An E&O policy helps cover costs associated with a financial a loss as a result of an error or omission by the contractor. If you are hiring contractors for a specific task such as cybersecurity, you will want to make sure the contractor has special coverage for cybersecurity work.

If you are hiring a contractor who uses their vehicle to conduct the services they are providing, it is essential that they carry business vehicle insurance.

Often contractors will carry a Business Owner Policy that bundles all of the significant coverages into one policy.

Depending on the nature of your business and the type of contractors you are hiring, you should require specific insurance that best protects your business. If you have a business and you are unsure if you are requiring appropriate insurance from your contractors, please reach out to a specialist at E.S.T.I.R. Inc. We proudly serve the Newark, NJ area.


How Auto Insurance in New Jersey is Different From Other States

All states have their own laws regarding auto insurance, but New Jersey is among the few that can be considered truly unique. If you live in Newark, NJ or surrounding areas, you need to make sure you are appropriately covered. E.S.T.I.R. Inc. is therefore here to help you gain a better understanding of New Jersey’s tricky auto insurance laws. Here’s what you need to know:

New Jersey is a ‘Choice No Fault’ State

Whereas most states have "fault" laws where whoever is deemed liable for an accident has to pay for the damages and legal costs, a handful of others states have "no-fault" laws, where all drivers involved have to handle the costs. Then there are the rare few states like New Jersey, which have something called "choice no-fault" laws. Here you have the option of going with fault or no-fault insurance, also known as "full tort" or "limited tort insurance". With full tort, drivers can file suit against the at-fault driver and their insurance company, receiving full compensation for damages to their car, medical coverage, legal costs, etc. Essentially, there are far fewer limitations here. Limited tort insurance is meanwhile appealing to a lot of people because it is generally a lot less expensive, but with this policy they have very benefits. In the event of an accident, they file a claim with their own insurance provider (regardless of who was at fault) and may receive only bare minimum coverage.  

Deciding Which Option is Best for You

Now, there are pros and cons to each option, and the right one for you will often depend on your amount of risk and financial worth. The important thing to know, however, is that the decision to go with either limited tort or full tort insurance must be made at the time that coverage is purchased (it cannot be changed after an accident). To learn more, contact E.S.T.I.R. Inc. (serving the Newark, NJ area and beyond) today.