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How Do You Meet the Insurance Requirements in Your Contracts?

Many contracts explicitly require a certain amount of business insurance. When that happens you may be required to purchase a policy or expand your current coverage. Here are three scenarios you could face…

  • You're required to purchase coverage in order to get a contract. This is a common scenario. A business wants to hire you for a six-month project, but before it will do so, you need to supply a Certificate of Liability Insurance. In situations like this, you may be asked to purchase General Liability Insurance, Errors and Omissions Insurance, or other policies. When this happens, our agents can send you insurance quotes and supply you with a Certificate of Insurance quickly to help you land the job.
  • You are required to purchase more E&O coverage. Let's say you already have E&O Insurance with a $100,000 limit, which you purchased in order to sign a contract with your last employer. Now you're on the cusp of signing a new contract, but your prospective employer requires you to have E&O coverage for up to $2,000,000. Each business sets its own requirements, so you may have to purchase more coverage from time to time. If that happens, simply talk with your insurance agent about adding coverage to your existing policy.
  • The contract doesn't require insurance. Your prospective employer may not mention insurance at all in your contract. But that doesn't mean you aren't liable. You can still be sued. The only protection from lawsuits you'll have are the policies that you chose to carry.

Curious to find out which policies will satisfy your clients' contract requirements? Use our Contract Decoder to translate the language in your contract into insurance requirements.

Next: Who is Responsible for Subcontractor Insurance?

70% of businesses raise prices or cut hiring when sued