How Contractors Protect Themselves from Liability

How Contractors Protect Themselves from Liability
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    You might choose to follow the road of the independent contractor as a way to set your own hours, define your own rates, and be your own boss.


While it’s true that not being on someone else’s payroll has its advantages, it also means you are responsible for protecting yourself from liability. Our list talks about some of the liabilities you may face as a contractor and how to shield yourself from them.

Create an Organized System

As a contractor, you should have an organized system from which to file your taxes and other payments. You may wish to pay your taxes quarterly rather than annually to stay on top of what you owe.

Another benefit of paying them this way is avoiding a larger deduction in April that might set you back more than you thought. Check with your account and do some research online to find the best system for you.

Sign a Freelancer Agreement

Companies may hire you from time to time to do work for them as a freelance employee. When this happens, you should sign a freelancer’s agreement with the company.

This agreement determines your relationship with the company, what they expect, and protects you if they want you to do something that isn’t in writing.

Consider Tile Contractor’s Insurance

There are many types of commercial insurance available for contractors. While you might want to look into a general coverage plan, most companies offer specialized versions of commercial contractor’s insurance depending on your specific field. If you do mantel work, deal with mosaics, install marble, work on home finishings, or install ceramic tiles, CA tile contractor’s insurance can protect you from some of the unique risks you might face in this field.

Get Commercial Insurance

Commercial insurance, like that available from, can cover a variety of issues you might face as a contractor. General liability insurance can protect you or your business in the event of an accident on-site or an injury a customer may face as a result of your work. Property insurance can protect the physical location of your storefront and mitigate the cost to maintain or repair it after an accident.

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You can even choose an insurance plan that will protect your equipment or compensate you for lost time if that equipment is malfunctioning and preventing you from working.

Contractors enjoy unique benefits and face their own challenges. You can use some of these tips to protect yourself in the event of an accident, injury, or professional dispute.

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