Your Comprehensive Guide to Certificate of Liability Insurance for Independent Contractors

October 17, 2022 / By: Stampede Insurance Team
Your Comprehensive Guide to Certificate of Liability Insurance for Independent Contractors

Independent contractors often do business slightly differently than other small business owners. This is one of the reasons it is essential that you get contractors insurance coverage.

Being your own sole employee means everything in your business is scaled down. However, just like other business owners, you could face liability for property damage and other issues.

On the other hand, having a certificate of liability insurance independent contractor will prove to clients that you are professional and reliable. 

What is a Certificate of Liability?

This proves that you have general liability coverage. Having this policy is desirable for many reasons, and this certificate makes it easy to prove.

This handy document proves that you have insurance coverage, and it includes a list of relevant information for those who may be curious about the details. It's also known as proof of insurance or an Association for Cooperative Operations Research and Development (ACORD) form. 

Getting this certificate comes with general liability insurance coverage. There's no extra cost, but it is a symbol of your business insurance policy and can be shown to anyone who requests it. This certificate automatically comes with your insurance plan, but you can request an additional one through your insurance agent if needed.

What Does a Certificate of Liability Show?

First of all, this type of document serves as a show of your professionalism and dedication to your clients. 

The document also shows specific information that may be important to your clients, licensing organizations, and other professional contacts. 

Your coverage maximum, as well as its policy limits, will be listed clearly here. Certificates also show your insurance company and when the policy came into effect. They also show the name of the policyholder. 

With all this information, it would be easier for your clients to see what you have to offer. It also enables them to trust you and work closely with you. When you work with large companies or on complex projects, building trust is essential. 

Can You Add Clients to Your General Liability Certificate?

It's possible to add clients to your general liability certificate and policy. That means adding them as an insured party. If you haven't had this request before, it may be a confusing one. Why would they need to be on your insurance policy?

Some professionals request this so they can keep track of whether or not you cancel your policy. They want to make sure you are always covered by your policy. 

It's possible to add a client to your certificate without legally providing insurance for them and changing your premiums and all the complexities that ensue. 

Why Is General Liability Insurance So Important?

General liability insurance provides coverage for unexpected damages your business is responsible for. That might include property damage, bodily injury, and even libel. Its cost varies for every company, but it is based on your size, revenue, and credit history.

Without this type of insurance, your company would be vulnerable to lawsuits of all kinds. Contractors do difficult, involved work, and sometimes that can result in injuries or property damage. 

Insurance policies mean that small business owners don't need to shoulder the burden and cost of these issues alone. Instead, their insurance provider will pay for medical bills, repair work, and other claims. 

Insurance claims also make things much easier for everyone involved. Instead of worrying about negotiating with someone and coming to an agreement on how to pay for damages, the issue will be settled through a formal process.

Insurance companies also have the resources to thoroughly investigate claims, making sure they are valid instead of blindly accepting them. Small businesses might struggle to do the same or represent themselves in court if faced with litigation. 

How Can an Insurance Company Boost Your Business?

Stampede Insurance has worked with countless contractors over the years, providing answers to their insurance questions and helping them find the most advantageous policies for their situations.

When your company is fully insured, you can focus on jobs without worrying about liability or being held personally responsible if something goes wrong. Our insurance agents work with companies of all sizes, and we help small businesses find the right contractors insurance for their needs. To get started in finding the right insurance plan for your business, contact us at 888-306-7887 at Stampede Insurance Services today!

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