Insurance for Independent Contractor

As an inherent part of the nature of your duty as an independent contractor, your job is associated with certain kinds of risks. Insurance for independent contractors is must, to avoid any kind of risks during any commercial venture. Independent contractor insurance offers cover against any specific kind of risk. Depending on the nature of the risk, insurance for independent contractors can be of different kinds.

There are primarily two broader categories of insurance coverage offered to independent contractors, such as business insurance and personal insurance. Business interruption insurance, employers liability insurance, jury service expenses insurance, key man insurance, legal expenses insurance, motor insurance, product liability insurance, professional indemnity insurance, property and contents insurance, public liability insurance, tax investigation and tax loss insurance, travel insurance are some of the examples of business insurance for independent contractors. Insurance covers, such as critical illness insurance, dental insurance, health insurance, income protection insurance, and life insurance come under personal insurance.

What is Indemnity insurance?

Indemnity insurance is designed to compensate the beneficiaries for their actual financial losses that are incurred, in case their clients sue them for their losses incurred due to negligence or fault at the end of the beneficiary. To get compensated under indemnity insurance coverage the insured person or organization has to prove his losses before the recovery can begin.

The recovery under indemnity insurance is usually limited to the amount of the losses which are easily provable, even if the actual amount of the policy is much higher. In this manner the indemnity insurance is very different from the other insurances e.g. life insurance, where the amount of the economic loss incurred by the beneficiary is actually irrelevant.