Business general liability insurance is an essential need for every business, no matter what it is.
In the case of independent contractors, it is even more important for these business owners to have coverage in the form of an appropriate contractors general liability insurance policy.
The idea that independent contractors do not need their own CGL insurance is false and failing to carry it could be detrimental to an independent contractor’s business.
The Big Myth About Independent Contractors and Liability
Independent contractors, also known as subcontractors, are those who usually specialize in certain jobs or can handle some of the workloads in bigger contractor jobs.
A myth associated with the hiring of independent contractors is that they are covered under the hiring company’s business commercial general liability insurance policy or the project owner’s insurance.
While it is true that every main contractor must carry their own commercial liability insurance, the basic policy does not cover subcontractors.
Even though it is possible for subcontractors to be added to an insurance policy in certain situations, generally speaking, this is not how things are handled.
It is expected that all contractors, including independent subcontractors, will have their own CGL insurance policy that covers them as necessary according to the scope of the work the business offers, who the business does work for, and what liability is typically deemed the responsibility of each different contractor.
Proper liability coverage for even small subcontractors comes from their own insurance policy.
Another Key Reason Independent Contractors Need General Liability Insurance
Beyond the fact that it is just good business practice for all contractors, including small independent contractors, to carry their own tailored business general liability insurance for everyone’s benefit, there is also the idea that in doing so, subcontractors will get more work.
With liability issues easily turning into costly events that can end up devastating contracting companies as well as the project owners they work for, most simply will not hire subcontractors these days because the liability risk to the hiring contractor and project owner is too great.
Additionally, many towns, cities, and counties are increasing their commercial general liability insurance requirements for anyone doing business within those locations.
Bryan Contractors Must Carry CGL Insurance
The city of Bryan Texas updated its building codes in the fall of last year, with some of those applying to building contractors.
According to these changes, contracting companies of all types and sizes are required to register with the city and upon doing so, provide proof of business commercial general liability insurance in the amount of $300,000 or more.
This applies even to small independent contracting services who must be insured before their business can be registered.
Independent Contractors Prosper With The Right CGL Insurance
The important message here is hopefully very clear.
Whether you are a big contractor running large-scale projects or a smaller subcontractor performing specialty or overflow work, your business needs appropriate contractors general liability insurance, especially in Bryan Texas.
Business general liability insurance for contractors is affordable protection that protects everyone and can keep the jobs coming for independent services and subcontractors.
An experienced insurance agent can help contracting companies big or small design the perfect policy for the right coverage at the best price!
