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On the Job

Is that independent hire insured? If not, then you'd better be.
August 1, 2003
URL: http://www.entrepreneur.com/article/63328

Hire an independent contractor, pay the fee, get the work done, and pat yourself on the back for a smart business decision. But who picks up the tab if things go wrong--or if they don't go exactly as planned? It's a good idea to make insurance part of your independent contractor agreement. The insurance you require depends on the type of work the contractor does and what your liabilities are.

According to Alejandra Soto of the Insurance Information Institute, these are the coverages you'll likely need:

In addition to addressing liability and other insurance issues in your contract, Soto recommends asking for proof of coverage. If an independent contractor doesn't have a par-ticular type of coverage, she adds, it's fairly simple to increase yours to fill the gap.


Jacquelyn Lynn is a business writer in Orlando, Florida.