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.