What Kind of Insurance Do 1099 Contractors Need?

Most 1099 contractors carry insurance to protect their businesses. They find many times that the jobs they wish to bid on require a specific type and amount of insurance before the contractor is allowed to submit the bid. The kind of insurance the 1099 contractor needs depends on the type of work the contractor performs and the requirements of the entity doing the hiring.

General/Professional Liability Coverage

Liability insurance provides coverage in the event something goes wrong. Examples of issues covered by liability coverage include injuries on the job site and equipment breakage. It protects both the 1099 contractor and the hiring entity in many cases. For example, if the 1099 contractor causes a personal injury to someone at the job site, the liability insurance will step in and pay the medical bills.

Commercial Auto Coverage

Commercial auto coverage protects not only the 1099 contractor but also the hiring entity in the event an accident occurs while the contractor is driving as part of the job he was hired to do. For example, if a 1099 contract landscaper causes an injury accident on his way to pick up plants for a client's project, his commercial auto coverage will take care of the accident costs, rather than have the client held liable.

Disability Insurance

Disability insurance is not required by an entity in order to perform a job. But is a prudent insurance type for 1099 contractors to purchase. It is insurance that will pay a pre-stated weekly benefit to the contractor in the event the contractor is unable to work due to a disability. It is not only the contractor engaged in potentially dangerous work who needs disability insurance. A freelance writer, for example can become disabled by falling in a parking lot, getting hit by a car or requiring back surgery. Disability insurance typically requires a waiting period following the event that causes the disability before the policy begins to pay. The premiums fluctuate depending on the chosen waiting period length, the percentage of salary that will be paid each week and the general riskiness of the contractor's chosen occupation.

EMERGE INSURANCE AGENCY             904-677-5884

Insurance Coverage That Could Save Your Business - Part 2

Some types of insurance are required to operate legally, while others are optional

Of course, the coverage a business needs depends on the type of company you run and the number of employees who work there. There are also  some optional insurance coverage business owners should always consider.

Here is the second of three "optional" insurance coverages that business owners often leave out of their insurance package which could literally save the business in a time of crisis.

# 2 - Equipment Breakdown Coverage

Take a walk through your business and look at all the big pieces of equipment that you would not like to replace out of pocket. All it takes is one person misusing the equipment, improper maintenance or a power surge that could wipe out your entire computer system.

You might mistakenly believe that your business property/casualty insurance will cover the damage.  However, business property/casualty policies only cover damage to your equipment from "external" causes, such as a fire, a flood or a tree falling on your roof. Those policies do not cover damage from "internal" causes such as mechanical failure, electrical short circuit or "arcing" (faulty wiring or motor burnout).

Losses related to equipment breakdowns are covered by aptly named "equipment breakdown" insurance. Equipment breakdown insurance (sometimes sold under the name of "boiler and machinery insurance") is an increasingly important part of any sound small-business insurance package for several reasons:

• New technology, such as fragile electronic and computerized equipment, is subject to breakdowns that can be more frequent and costly than traditional mechanical equipment.
• New business practices, such as Internet marketing and "just in time" inventory, make all businesses more dependent than ever on computer systems.
• Critical business information often exists only on the Internet, or in online databases, that cannot be access during periods of equipment breakdown.
• Employees are now traveling with many types of equipment that were once permanently attached to a fixed location, so breakdowns often occur in places other than the ones insured under traditional property/casualty policies.

Equipment breakdown coverage pays the cost to repair or replace equipment damaged by a covered accident. It can also cover business income losses that stem from an equipment breakdown and the additional costs you incur to speed restoration of business operations.

Most insurers are building equipment breakdown coverage into their commercial property packages. If you have an older policy, however, you may have to review it with your insurance agent to make sure it covers the high-tech equipment upon which your business now relies. If it doesn't, maybe it's time for an upgrade.

Call us for more on Equipment Breakdown insurance

EMERGE INSURANCE AGENCY
904-677-5884    Contact us

Insurance Coverage That Could Save Your Business - Part 1

Some types of insurance are required to operate legally, while others are optional

Of course, the coverage a business needs depends on the type of company you run and the number of employees who work there. There are also  some optional insurance coverage business owners should always consider.


Here is the first of three "optional" insurance coverages that business owners often leave out of their insurance package which could literally save the business in a time of crisis.

#1 - Business Income Insurance 

Business income insurance (also known as business interruption insurance) is an important but often misunderstood coverage. It is designed to replace income lost as a result of a disaster. This insurance policy is designed to supplement the resulting lost income as well as provide much needed dollars to pay continuing expenses such as salaries, rent and utilities.

According to the Institute for Business Home and Safety, 25% of businesses never reopen after a disaster or business interruption.  Business income coverage increases a business’ ability to survive a substantial loss.  So if your business has to close because of disastrous weather, national security threat, or because a tornado ripped half of your business apart, your business will still have income coming in.

While commercial property insurance protects your real estate and contents, business income insurance protects your business against loss to your firm’s profit-and-loss statement by covering continuing expenses, helping your firm preserve contractual obligations and retaining personnel.

Business income insurance will continually pay your business while it is down, allowing your business to be one of the businesses on the block to reopen their doors.


EMERGE INSURANCE AGENCY

904-677-5884

Contact us

Business Interruption Insurance

Watch and listen to this Florida business owner's experience with the need for business interruption insurance.

Call to discuss your business's exposures and need for protection before that "what if" happens.

EMERGE INSURANCE  -  904-677-5884 - Contact us