Instead of being employed by a single firm, many people choose to work as independent contractors. This allows them to provide services to multiple clients and still have a great deal of control over their schedules and revenue generation. While there are many great things about earning a living this way, it pays to remember that business insurance in Indianapolis IN is something every contractor should secure. Here are some of the reasons why the right coverage is an essential business expense.
Access to a Wider Range of Clients
When talking with a prospective client, it’s not unusual for the topic of business insurance in Indianapolis IN to arise. Some business owners will not provide assignments to independent contractors unless they have general liability coverage.
The reason for this is simple. If the contractor is sued due to issues with the services provided, that coverage will provide funding for any settlement that results. If there is not an insurance policy in place, the client may be held legally responsible for that settlement. By having business insurance in place, the contractor is able to limit the risk to the potential client and has a better chance of being chosen.
Complying With Industry and Jurisdictional Standards
Another good reason to look into business insurance is because it’s required by law in many industries. An independent contractor who labors in such an industry runs the risk of facing substantial fines and may be unable to take on work until insurance is secured. While paying a premium on a monthly or semi-annual basis may seem like a waste of money, avoiding trouble with the local jurisdiction and not having to pay fines will more than justify the cost.
Help With Legal Fees
The insurance does more than protect the interests of the contractor’s clients. Should the contractor have to go to court, the right insurance plan will provide resources to help cover legal costs. That includes lawyer fees and support with settlement payments. Without the insurance, the contractor could end up in bankruptcy.