We’re all familiar with how advantageous insurance can be for large industrial enterprises and personal property, but how effective can independent contractor insurance actually be? Is it merely a formality and an added expenditure or does it warrant the investment that it requires? You’ll be surprised at the merits that it yields for independent contractors. In fact, it’s so essential that its existence is oftentimes required by law before any business can be done. Here are just a few benefits of insurance for independent contractors.
Coverage that serves as a safety net
You’ll often hear the term general liability tossed around in conversations that involve insurance, and for good reason: it serves as a fundamental policy that both small and large businesses can ill-afford not to have. As an independent contractor, you’ll often be faced with situations that present potential safety hazards as well as necessitate the use of dangerous and specialized tools. General liability insurance covers claims of injury, be it physical or personal as well as property damage. It minimizes the legal expenditure that it would take to clear the dispute or lawsuit, and is an invaluable tool in itself.
Can promote the business
You may be surprised at how insurance can possibly be good for promotional purposes. In the independent contractor industry, you’ll often be faced with stiff and heavy competition. It can be an incredibly difficult task to stand out from the crowd, and you’ll need all the advantages that you can get to have a better chance at having a lucrative career. Having the right tools for your respective trade and the expertise to apply your practice are mandatory elements, but being insured gives clients an even better impression of how you are as a professional. It’ll open doors for you better if customers know that the services are being rendered by someone who has insurance as opposed to a contractor who doesn’t.
Reasonable costs and flexible plans
Last but certainly not least are the policies and the fees attached to them. There’s a common misconception about how high insurance premiums can be. While it certainly isn’t without precedent, the costs are actually quite reasonable and some policies allow you to tweak and modify them based on exactly what you need and what your business entails. Needless to say, the level of comfort and peace of mind alone are worth the price, and you won’t have to spend a small fortune on them, either.
Insurance is certainly beneficial and essential to individual contractors, as it is important for bigger businesses. It not only shields you from potentially unpleasant events that could cause significant financial losses, but it can also help promote your business, without breaking the bank.