Professional Indemnity Insurance
Contractor liability insurance guards contractors and their employees from claims that may arise out of anything including liabilities from accidents at work, contractual liability, liabilities arising from products manufactured, etc.
As a contractor, the cost that you would require to protect any of the above-mentioned liabilities would be unbearable, a reason why contractor liability insurance is the only and the best alternative. When you apply for a contractor liability insurance, you need to select the liability that you seek protection from. The amount for which you can be granted depends on a number of factors, such as the kind of work undertaken, gross receipts, total payroll expenses, etc. Once this is decided you have to make a down payment and start paying installments.
Law makes it mandatory for contractors to ensure that his employees are insured. For example, in case one of your uninsured employees gets injured while in work, his lawyer has the right to charge you…hence, be prepared or get insured.