Independent contractors and insurance

[mrs.jacinthe]

A question for those of you who are either 1099 or knowledgeable about insurance in general.

I've given two weeks' notice at work and will be switching to independent contracting with them on an as needed basis. Basically doing overflow stuff. They have asked me to jump through some hoops to remain up and up as an IC: obtaining a business license, etc. But as one of the hoops, they've requested I carry commercial general liability insurance. But the more I look into it, the more confused I am. I will be working from home: no visitors, no employees, and no work-related contact with anyone except my client(s). I would only be doing office-type duties - editing and such. It doesn't seem like liability is really necessary?

Is commercial general liability really necessary and/or the correct insurance type for this? Any experience with costs? (Obviously, I'm calling my insurance agent in the morning, too).

[orval]

I have liability insurance for my business ($1M). It is about $300-400 for the year. My office is in my home but I do deliver to other locations Sorry not much help on indep. contractor thing.

[mrs.jacinthe]

Ahhh, maybe it's to cover the delivery part. That's understandable. (I've also got to name them on my car insurance, I think)

[yentl]

Yes, I have professional liability and commercial liability, which are two separate things. My landlord required the commercial liability and I do have an office, so I think it makes a little more sense in my situation. I believe it was a little less than $300 for the year but it really depends on your business setting.

I wonder, though, if maybe your homeowners insurance would come into play here at all? Or if there's anything you can add through them that might be less expensive. I would look into that at least.

[mrs.jacinthe]

Update: I talked to my insurance agent (turns out telling folks you're a real estate agent opens some doors of good service) and he said my home owners would cover anything on my home premises, as I have no visiting clients, and my car insurance will cover anything while I'm delivering documents. So I'm increasing my coverage to 500k for both property and liability for auto and that coverage will be sufficient for me. This is counteracted by a discount for being a real estate agent, so it's a wash, expense-wise.