You’ve decided it’s time to try out contract employment, an increasingly popular option for today’s workforce. As a 1099 contractor, you can create a work life with more flexible scheduling and more opportunities to specialize, and even make more money. Independent contracting can be an ideal choice for new parents returning to the workforce. It’s also a great choice for seasoned professionals, who can capitalize on their strong professional reputations and networks. Whether you are considering a side job or a complete switch from full-time salaried employment to independent contractor, you’ll need to have professional liability insurance in place.
Employers Require Professional Liability Insurance
Small local businesses, large corporations, government offices, nonprofits, and educational institutions hire many kinds of skilled and certified contractors. From teachers, caregivers, and therapists, to IT specialists, repair, and maintenance, this list is endless. Contracting talent for more central operational roles, like billing, marketing, and even administrative support, is gaining favor, especially among start-up companies.
Contractors often work in close contact with an employer’s clients and other stakeholders, just as an employee would. If a client or customer takes legal action (for example, over the quality or types of services they received), the employer’s liability insurance would cover an employee’s work products, but not a contractor’s deliverables.
The contract agreement usually spells out professional liability insurance requirements, including required minimum liability coverage level. The typical minimum coverage varies by industry, and sometimes by the employer’s location.
Shop Around for the Policy that Fits
Getting started as a 1099 contractor can involve detailed set-up tasks, such as getting a business license and upgrading your office equipment. Finding a professional liability insurance policy may not be the most exciting task, but the time you invest to find the best fit is worth the effort.
Contact the insurance agent who handles your homeowner’s insurance or renter’s policy. Be clear that you are looking for a professional liability insurance in Altamonte Springs, FL, not business insurance. Your agent asks for the required minimum liability coverage from your contract agreement, the type of work you’ll be doing, where you will be working (e.g., the employer’s or the client’s location), and other details depending on the industry. Save time and avoid errors by emailing or faxing a copy of the agreement to your agent, who will probably request specific pages rather than the entire agreement.
Look into alternative insurance providers, especially if your agent does not offer professional liability insurance directly, but offers to get quotes for you. You might find better prices and enhanced services from an insurance provider specializing in professional liability insurance in Altamonte Springs, FL.
