Guide to Vendor Requirements for Workers' Comp Insurance

June 27, 2022

Owning a small business is an exciting yet challenging adventure. You get to work for yourself and put all of your effort into your passion, all while creating something to share with the world. 

If you employ anyone to assist with your company, you likely have various types of insurance required for small businesses. However, if you hire freelance workers' or contractors on the side, your insurance coverage needs may be different, specifically regarding workers’ comp insurance.

Here’s everything you need to know about insurance coverage for small businesses and how to keep your contractors safe.

What Insurance do I need for my business?

What insurance is needed for small business owners? There are certain types of insurance that are encouraged for both large and small companies, such as:

  • General liability insurance, which protects your business from any claims regarding bodily injury or property damage. 
  • Professional liability insurance, which covers claims related to mistakes made while providing professional services. 
  • Commercial property insurance, which protects your building and equipment used to run your business. 
  • Business income insurance, which provides coverage on lost income in the event of a disaster that caused property damage. 
  • Business owners policy, which is a bundle of general liability insurance, commercial property insurance, and business income insurance. 
  • Workers' compensation insurance, which gives full-time staff protection in the event of an accident or illness. This is only mandatory if your employees work directly for you - you don’t have to provide contractors with insurance.

With more people making purchases online - and spending more time on the internet in general - it’s also recommended to invest in cyber liability insurance. This type of policy provides a layer of protection for data and other sensitive information in your computer system or in the cloud.

Here at Kickstand Insurance, we offer opportunities to provide some of the other types of insurance listed above to our clients when they come on board and have an existing policy with us. We try to make it as easy as possible to get coverage as a business owner!

Do I need a Workers' Comp Plan for my contractors? 

Like we said before, getting workers' compensation insurance for small business contractors isn’t mandatory. However, there are two options to ensure your vendors feel comfortable and confident working in your place of business:

  • Get a worker’s compensation plan for contractors. It’s not required, but you can still set up a plan for your vendors if you want to gain peace of mind while they’re on the job. 
  • Encourage your contractors to get their own personal worker’s compensation insurance plan. If you don’t want to provide an additional plan for your contractors, encourage them to get their own compensation plan. You can even make it a requirement to show proof of insurance before you hire a candidate.

Where can I get great Workers Comp Insurance?

Are you a small business owner in search of a workers' compensation insurance quote? Kickstand Insurance is the perfect place to gain the ultimate protection for you and your employees fast.

Instead of waiting days or weeks to learn about a provider’s workers' compensation insurance pricing, we provide instant access to your quote online. All you have to do is fill out a simple form and in minutes you’ll know exactly how much your workers' compensation plan will cost. 

Ready to learn more? Reach out to us today for more information or get your instant quote now. 

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