If you choose to be an independent contractor, it will take a lot of hard work for you to establish yourself as a professional. One error might negate all of your hard work and endanger your company. As an independent contractor, you face many risks, some of which are solely related to the type of work you do. The fact that you work alone means that you are the one who will shoulder all of the risks and be responsible for any monetary damages.
The Top Causes of Potential Loss/ What Are the Top Causes of Potential Loss?
There are a few common causes that can result in financial loss for an independent contractor. They include:
- Workplace Accidents That Result in Injuries – Workplace injuries can cost up to $58,000 or more, depending on the type of work and the extent of the injury.
- Theft (Building Materials and Equipment) – The theft of equipment and building materials can be one of the biggest financial disasters a contractor can experience.
- Fire Hazards – Fire hazards are everywhere in the workplace and can be incredibly costly to an independent contractor.
Don’t Go Up in Flames
Protect yourself from various types of fire hazards. Pick up oil/solvent rags and store them in a container that is fire-resistant. Dispose of cigarettes and matches as carefully as possible. Make sure fire extinguishers are in the appropriate places and fully charged at all times.
Be mindful of your work area. Pick up anything that is out of place. Make sure to schedule repairs if something is broken or not working correctly. Perform safety inspections regularly and keep plenty of personal protection equipment on hand at all times. If a spill has occurred, make sure to barricade the area until it is cleaned up. Always make sure MSDS sheets are easily available to all employees.
Surround your work area with fences and gates. Keep an accurate inventory of all work equipment and assets that you carry with you or store at the worksite. Make sure to lock all doors and lock down any equipment and building materials. Install theft-deterrent devices like fuel shut-offs and ignition locks. You can also place surveillance cameras and alarms on building materials.
Know All Your Risks
As an independent contractor, you will face many risks. It’s important that you have a contract in place before you start working. Once you begin, it’s essential that you only hire subcontractors who are fully licensed and insured. Anytime you take on a new job, it’s important to have the right type of insurance for whatever job you are getting ready to undertake. Working with your insurance agent will help you identify all of the potential risks you may have to deal with while you are on the job.
Consider Choosing Premier Risk, LLC to Cover Your Contracting Business
As an independent contractor, you will need to talk to a professional before you choose the insurance you buy to protect yourself from financial loss. Contact the agents at Premier Risk, LLC to learn more about the risks you’re exposed to. Our agents can evaluate your insurance needs and help curate customized insurance plan for your business.