Setting insurance requirements is a tough line to walk. Set them too low and your business won’t be adequately protected from a contractor’s mistakes. But set them too high and the top talent may raise their rates to compensate for the higher insurance premium, or avoid doing business with you altogether.
If you’re an MSP, VMS, staffing company, or marketplace, it can seem like you (and your independent contractors) are at the mercy of your enterprise clients’ insurance requirements. The problem is that many enterprises are still using legacy insurance requirements meant for business-business relationships, which don’t match the risk (or the budget) of an independent contractor. This can lead to one of three outcomes:
- The independent contractor decides not to take the contract
- The independent contractor raises their rates to compensate for the cost
- The enterprise issues a waiver, allowing the independent contractor to be uninsured.
The best way to combat this is by right-sizing the requirements, and working with carriers who understand independent contractors and can therefore provide better prices and more flexible policies.
In our experience, the best way to work with an enterprise’s legal department to lower their requirements is with data. That’s why we’ve compiled the industry standards for insurance requirements in the top fields for independent contractors. We’ve also spent the last few years working with carriers to build flexible insurance packages that provide these coverages more affordably.
Download the report for a full breakdown of the coverages, limits, and endorsements required for your industry! Select a category below to get started:
If you have any questions, need an insurance expert by your side for upcoming conversations, or would like an assessment of your own requirements, give us a call! Email firstname.lastname@example.org, or call (877) 968-9108 to see how we can remove insurance as a barrier to your workforce.
Frequently Asked Questions:
What does Cyber Liability Insurance Cover?
Many don’t realize that what Cyber really covers is data. If a contractor’s computer is hacked, it would cover the data lost in the cyber attack – but it would also cover them if a file with client information was stolen from their car. What it doesn’t cover, are things like damaged electronics or lost revenue from a bug in a freelance developer’s code.
Read Should Your Independent Contractors Have Cyber Insurance to learn more!
Can Umbrella Replace Part of a Requirement?
An umbrella policy extends the limits of the coverages a contractor already has. If a contractor has $1M General Liability and $3M Umbrella Liability, they can only use the Umbrella policy on General Liability claims that surpass the initial $1M limit.
What is a Waiver of Subrogation?
When a contractor has a claim, their insurance carrier may decide to later try to recoup the loss from other responsible parties – that means you. A waiver of subrogation takes away this option.
What’s the Difference Between Certificate Holder and Additional Insured?
While certificate holders are allowed to access policy information, and (in most cases) are informed of any changes, only an Additional Insured endorsement makes it so that the insurance actually applies to you. This becomes important when your business is sued for a contractor’s mistakes.
What do I do When my Enterprise Clients’ Requirements are too High/Expensive?
Many large enterprises have the same requirements for independent contractors as they do for full scale businesses. Education can go a long way in helping them lower them to better match industry standards. Show them benchmarks and statistics, and if you need help, call Bunker! We’re happy to be your resident insurance experts and sit in on any meetings where our knowledge can be of service to you and your contractors.