U.S. Risk

Covering Liabilities Created by Working with 1099 Contractors

Independent contractors operating in 1099 do not have the same liabilities inherent with regular W-2 employees for your business. The nature of working with those in the gig economy brings slightly different risks. The employer may be held liable for the contractor making insurance such as occupational accident insurance a must-have.

Occupational Accident

The experts at U.S. Risk state that OAI insurance costs less with more control and flexibility than a standard workers’ compensation plan. The benefits make occupational accident insurance ideal for employers working with 1099 contractors. The business is able to provide some protection should the contractor be injured on the job.

Performance Bond

These bonds step in to help cover costs to finish a job should the contractor not finish it. The business has protection should the contractor do shoddy work that the business has to redo. The bond gives the business protection against a lawsuit over the project.

Professional Liability

Most of these insurance policies provide general liability coverage for both your company and the independent contractor. Ideally, the contractor you work with has a general liability policy, but if they do not, this policy gives you some protection.

Occupational accident insurance is one way to protect your business should something happen to the contractor while working on a project for you. Look at your options to make sure OAI is the right option versus workers’ compensation.