Contractor Indemnity Insurance

The skills and passions of an independent contractor are often revealed when pursued over the stability and benefits that come with the security of a full-time job taken at a separate company. This very well may describe you. Your confidence and belief in your abilities is well-regarded. This leads us to strongly encourage you to consider acquiring professionally contracted indemnity insurance to protect yourself.

Indemnity Insurance Defined

Indemnity insurance is one of the less common types of insurance coverage. This type of insurance is specifically for independent contractors. It is a professional liability insurance that can be used alternately between errors and omissions insurance and professional liability insurance. All three different terms are used by diverse professionals alike. Each form of insurance covers independent contractors that provide specialized services and consulting.
Many businesses have general liability insurance that covers damages to property and bodily injuries. Unlike general liability coverage, indemnity insurance protects you against unforeseen mistakes and damages caused by negligence. When a client files a lawsuit against a contractor, the contractor will be protected if the company has indemnity insurance or an errors and omissions policy. Claims filed under a lawsuit can be endless. When a client claims the job that your company provided was done poorly, you mistreated certain aspects of the job to cause your client to spend more money, or you simply did not do the job as you said that you would, having professional insurance will cover the costs associated having to go to court for the lawsuit. Costs may include attorney’s fees, damages to be paid at the close of the lawsuit, and courtroom fees.

Who Should Get Indemnity Insurance?

Indemnity insurance is available to those that work in the field as mortgage brokers, attorneys, financial advisors, or accountants. A variety of fields are covered. Contractors in the field of digital media have a chance of being advised to acquire indemnity insurance as well. It is common for independent construction contractors to be on the receiving end of a lawsuit because of careless oversights or poor work production. General liability will not protect the construction contractor in this lawsuit. Therefore, a form of indemnity insurance will be needed.

Why Get Indemnity Insurance?

Many businesses will not hire a contractor that does not have an indemnity insurance policy. At first you may not think you will need this form of insurance, as is common with other insurances. Though you may not be a big company, clients can file a lawsuit against you even if you are not at fault. Without indemnity insurance, you will have to pay for the costs to fight the lawsuit out of your own pocket. As a result, this causes you to lose time and money that you can never get back.