Independent Contractor Insurance Maine Policy Information
Independent Contractor Insurance Maine. Being an 1099 independent contractor can be liberating, but it is not without its own risks, just like a small business. If you work as an independent contractor in ME, you must protect yourself financially; the IRS views independent contractors as small business owners, and as a small business, there are inherent perils involved that can leave you liable and on the receiving end of lawsuit from a disgruntled client or injured customer.
Although the type of work that you do determines your exact risk level, having the right independent contractor insurance Maine protection in place can prevent personal financial loss, impeding your success.
Independent contractor insurance Maine protects your 1099 business from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
Types of Insurance for Independent Contractors
Whether your job entails entering data or offering digital marketing services, doing plumbing work, or providing carpentry work in a client's home, you face risks everyday as an 1099 independent contractors. There are several types of coverage that can help to mitigate those risks, and investing in this coverage is a good way to ensure your business stays healthy and productive.
Although a general liability policy is a good place to start for independent contractors, there are other types of independent contractor insurance Maine you should consider, including:
- Errors and omissions coverage. Contractors often provide advice and consultation services. If this describes some of the services that you offer in your role as an interior designer, financial planner, landscape architect, accountant or other job, then you need to protect yourself from losses a client may experience as a result of your advice or recommendations. This insurance protects you from claims of errors and omissions.
- Bodily injury and property damage coverage. Protect your business from claims of bodily injury and property damage with this type of coverage. If you are a contractor who works with heavy tools and machinery, such as an electrician, plumber or remodeler, then you should be concerned with accidents that might occur from compressed gas, defective machinery or power tools. This coverage protects you from these unexpected accidents and events.
- Liquor or product liability. If you serve food or drinks at events, then product and liquor liability insurance is important. If a client is injured or becomes ill from eating or drinking items you provide, then you can fall back on this insurance for any claim that is lodged.
- Medical and disability coverage. This type of coverage provides medical coverage to you as an independent contractor, since most contractors do not have their own health insurance or disability insurance. If you become ill or hurt, this is coverage that you will appreciate owning.
Who Should Buy Independent 1099 Contractor's Insurance?
There are several types of independent contractors who need to consider contractor's insurance. Some of them are:
- Construction workers working independently
- Independent painters, electricians, carpenters and plumbers
- Dog or horse trainers
- Hair stylists and manicurists
- Writers and editors working as freelancers
- Web designers
- Graphic designers
What is Liability Insurance for Independent Contractors?
Independent contractor insurance Maine for 1099 contractors is a type of insurance that protects the contractor from third-party damage losses and lawsuits that might otherwise leave their businesses financially devastated. The policy chosen should cover:
- General liability. A general liability policy provides coverage for both bodily injury and property damage. For instance, if you or a sub-contractor falls and gets hurt while roofing a home, this policy would cover the medical costs associated with the fall. If you cause damage to a client's lawn while repairing the roof, it will also provide coverage for repairs.
- Advertising personal injury coverage. If you cause damage to someone's reputation through false advertising, slander or libel, this coverage protects you from claims.
- Completed product/operations. If your failure to complete a project causes damage to the client, this coverage will pay for associated claims.
These are standard independent contractor insurance Maine coverage types for contractors. Your policy should be tailored to your own unique needs and the risks that you take as an independent contractor and the liabilities that you face. It may be the case that a standard business owner's policy is sufficient for your needs. This policy, also referred to as a BOP, offers property damage and bodily injury coverage and may also offer business income protection or commercial vehicle insurance as well.
You should also consider worker's compensation insurance. This is required by some states if you have a certain number of employees, but working as an 1099 independent contractor, you may want to look into purchasing your own worker's compensation policy to cover medical bills and other expenses if you become ill or injured due to perils on the job.
Work with a knowledgeable insurance agent to determine which policy coverages are right for you. Your agent can assess your risks and help you find the best policy while comparing rates to find an affordable option that you can easily budget.
Maine Economic Data, Regulations And Limits On Commercial Insurance
You have a great idea for a business and you have developed excellent products and services that you are certain people will benefit from. You've also developed a viable business plan. Now you need to choose a place to start your company.
In order for your company to be as successful as possible, you need to choose a location that offers a favorable market for your specific business. After all, if the area doesn't offer a job force to support your operation or a target market that will purchase your products and services, you likely aren't going to succeed.
With that said, if you are thinking about starting a business in Maine, having an understanding of the state's economic trends is essential. It's also important to know what type of commercial insurance you'll need to carry. Below, we offer an overview of this information so that you can determine if ME is right for your business.
Economic Trends For Business Owners In Maine
Unemployment rate is a good indicator of a state's economic climate. The lower the rate, the more opportunities exist for business owners, as it suggests that there are ample job opportunities, and the more job opportunities, the more successful businesses there are in the region.
As per the Bureau of Labor Statistics, the unemployment rate in the state of Maine was 2.9% in December, 2019; that's 0.6% lower than the national average, which was 3.5% at the same time.
Additionally, according to economists, more employment opportunities are expected in the coming years, which will further reduce the unemployment rate.
While locations throughout the state offer opportunities for business owners, there are certain locations that are ideal for entrepreneurs. These locations include:
- Bar Harbor
These cities are the largest in the Pine Tree State, so it's understandable why they offer the best opportunities for businesses. While Maine is home to multiple industries, there are specific sectors that do particularly well here, including:
- Finance and insurance
- Hospitality and tourism
- Information technology
- Professional services
- Real estate
Therefore, if you are considering launching a business in any of these industries, Maine is likely a good location for your company.
Commercial Insurance Requirements In Maine
The Maine Bureau of Insurance regulates insurance in ME. Maine mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Maine requires you to have worker's compensation insurance if you hire even one employee on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. Independent contractors do not count as employees, but if those contractors employ subcontractors, the subcontractors must be covered by a workers compensation policy.
Maine also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
Additional Resources For Small Business Insurance
Protect your company and employees with the right commercial insurance policies. Read informative articles on small business insurance coverages - and how they can help shield your company from legal liabilities.
- Small Business
- Business General Liability
- Business Interruption
- Business Liability
- Business Owners Policy (BOP)
- Certificate of Insurance
- Commercial Auto
- Commercial Umbrella
- Comprehensive General Liability
- Directors and Officers Liability
- Cyber Liability
- Employers Liability
- Employment Practices Liability
- Event Cancellation
- General Liability
- Home Based Business
- Independent Contractor
- Liability Insurance Certificate
- Liability Insurance
- Professional Liability
- Workers Compensation Insurance
Your small business faces many potential disasters including: fire, floods, theft, equipment breakdown, lawsuits from clients or customers and current & former employees. Any many other risks you haven't even thought about.
A small business commercial insurance program should provide protection for both larger and smaller disasters. The obvious things like fire, flood and theft most business owners think about... but what if a hacker infects your computers with a virus - and files containing private customer information like credit card and Social Security numbers are stolen?
Who is going to pay to fix your customers credit rating etc...? Will your insurance pay for the cost? You need to know that.
Your commercial insurance program should cover events that can close down your company, or cause it to lose revenue. Anything less than that is not enough coverage. Commmercial insurance doesn't cover everything, and all policies have exclusions and limits.
You need a written plan that allows you to get your operations back up and running as quick as possible.
Request a free Independent Contractor Insurance Maine quote in Arundel, Auburn, Augusta, Bangor, Bar Harbor, Bath, Belfast, Berwick, Biddeford, Brewer, Bridgton, Brunswick, Bucksport, Buxton, Camden, Cape Elizabeth, Caribou, Casco, China, Cumberland, Dexter, Dover-Foxcroft, Durham, Eliot, Ellsworth, Fairfield, Falmouth, Fort Kent, Freeport, Fryeburg, Gardiner, Glenburn, Gorham, Gray, Greene, Hampden, Harpswell, Hermon, Hollis, Houlton, Jay, Kennebunk, Kennebunkport, Kittery, Lebanon, Lewiston, Limington, Lincoln town, Lisbon, Litchfield, Lyman, Madawaska and Wiscasset, Madison, Millinocket, Monmouth, Naples, New Gloucester, North Berwick, North Yarmouth, Norway, Oakland, Old Orchard Beach, Old Town, Orono, Orrington, Oxford, Paris, Pittsfield, Poland, Portland, Presque Isle, Raymond, Richmond, Rockland, Rumford, Sabattus, Saco, Sanford, Scarborough, Sidney, Skowhegan, South Berwick, South Portland, Standish, Topsham, Turner, Vassalboro, Waldoboro, Warren, Waterboro, Waterville, Wells, Westbrook, Wilton, Windham, Winslow and Farmington, Winterport, Winthrop, Yarmouth, York and all other cities near me in ME - The Pine Tree State.
Also learn about Maine small business insurance requirements for general liability, business property, commercial auto & workers compensation including ME business insurance costs. Call us (207) 401-4779.