Consider this scenario: You have hired an independent contractor to fix your building’s leaky roof. Since it just rained, the roof is wet. The contractor slips on the flat, slippery roof. While bracing for the fall with his arms outstretched, he injures his shoulder and needs medical attention.
How to Cover Contractors’ Injuries
If the person was on your payroll, his insurance as an employee would cover medical costs. Workers’ compensation coverage would also pay him a portion of his salary during his recovery. When an independent contractor is injured on your property, however, you will be liable not only for the healthcare costs but you could also be subject to hefty legal fees and court settlements if the accident was caused by unsafe working conditions.
Indirect liability insurance, also known as contingent liability coverage, would protect your company from the costs involved in the contractor’s accident. In some states, employers are allowed to opt-out of workers’ compensation coverage, but would still be liable to cover the costs of employees’ injuries. An occupational accident insurance policy is a type of contingent liability insurance that could cover both employees and contractors in those states if they were injured on the job.
Talk to your insurance agent to discuss the best plan to protect your business.