As an independent contractor in Montana, it’s important to protect yourself and your business with insurance coverage. Unlike traditional employees, independent contractors are not typically covered by their clients’ insurance policies, which means they need to obtain their own coverage to protect against liabilities and risks.

Here’s a closer look at the types of insurance coverage independent contractors in Montana may need.

1. General Liability Insurance

General liability insurance is a foundational policy that covers third-party claims of bodily injury, property damage, and advertising injury. For example, if a client or member of the public is injured on your business premises, general liability insurance can help cover medical expenses and legal fees associated with the claim. This coverage is essential for independent contractors who provide services at their clients’ locations, such as construction contractors or event planners.

2. Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, protects independent contractors against claims of professional negligence or mistakes that result in financial losses for clients. This type of coverage is particularly important for independent contractors who provide advice, such as consultants or financial planners.

3. Commercial Auto Insurance

If you use your personal vehicle for work purposes, you may need commercial auto insurance to protect against accidents and other incidents while driving. This coverage can help pay for damages to your vehicle, as well as injuries or property damage you cause to others while on the job.

4. Workers’ Compensation Insurance

If you have employees, workers’ compensation insurance is typically required by law in Montana. This coverage helps pay for medical expenses and lost wages if an employee is injured on the job. Even if you don’t have employees, it may be wise to consider purchasing workers’ compensation insurance for yourself, as it can help cover your medical expenses and lost income if you are injured while working.

5. Cyber Liability Insurance

As an independent contractor, you may store sensitive client data or other confidential information on your computer systems. Cyber liability insurance can help protect against cyber threats such as data breaches, malware attacks, and cyber extortion. This coverage can help cover costs associated with data recovery, notification and credit monitoring for affected clients, and legal fees if a lawsuit is filed against your business.

In conclusion, independent contractors in Montana should consider obtaining various types of insurance coverage to protect themselves and their businesses against potential liabilities and risks. Working with an experienced insurance agent can help you determine which types of coverage are most appropriate for your specific business needs.