Like any other small business owner, independent contractors can be sued and held liable for damages. General liability insurance is essential for independent contractors because:
It protects you and your business. Independent contractors have the same legal obligations and liability exposures as larger firms. They can be sued for damaging client property, causing bodily harm, or injury. General liability insurance helps cover legal fees and damages resulting from a lawsuit.
Your clients want you to have it. Your clients may require you to have general liability insurance before they sign a contract with you. Without this insurance, they could be held responsible for alleged wrongdoing or accidents caused by you or your work.
It may be required by law. Certain industries, such as construction, require independent contractors to carry general liability coverage. Most often, it’s best for both you and your client to obtain separate general liability insurance policies.