While your chances of being sued may vary, this can happen. For example, it is not so likely that a free writer working remotely will be prosecuted as a plumber, painter or contractor who works on site simply because he does not have as much access or opportunity to harm. However, insurance for your independent contract is cheap and will be very helpful if you are involved in an expensive and lengthy lawsuit, so consider all your options. Example 2: A marketing consultant develops a strategic plan for a client. Despite the completion of the plan, the client is dissatisfied with the work, or even ends with negative publicity. The client sues the advisor who is faced with both legal defence and potential damages. Your E-O insurance is able to intervene and cover the costs. Just as contractors who work with physical equipment and interact with clients in homes, work environments and other locations, an independent contractor who provides advice could be held responsible in the event of a problem. Error and Abandonment Insurance (OA) is ideal for accountants, interior designers, financial planners and other independent contractors who provide advice or advice. If the client suffers damages or losses as a result of your advice and sues you, this type of coverage will pay for damages and legal costs. The rules for paying employees vary according to location. Some states require independent contractors to support this coverage.

If you have staff or employ others, you may need to take out such insurance. The work allowance is used to protect your workers when they are injured in the workplace and to reimburse them if they are unable to return to work. For you, the contractor dealing, this type of coverage can prevent a costly lawsuit and juicy legal fees. Example 2: A painter works for a company and redoes the conference room. A visitor enters to see what is happening and slips on the scarf, falls and breaks her ankle. The visitor sues the contractor and receives damages paid by the insurance through the policy. Example 3: a landscaper works in a meadow and loses control of the mower.