How to Lower the Risks of Being an Independent Contractor

​Being an Independent Contractor is both liberating and risky. For some, this means that they own a small business that can be hired out to larger businesses or to private clients. However, not all independent contractors are small businessmen. Some are people who value their freedom and find the idea of an 8 to 5 job overly restrictive. 

Others have a skill set that many companies want but they do not need enough of it to justify a full-time employee. For example, all companies, at some point, will need legal counsel. But unless the company is very large it is unlikely they will benefit from a full-time lawyer. Instead, a lawyer will probably have several clients all of whom are billed for only a few hours each. 

Regardless, Independent Contractors are exposed to considerable risk and they must be careful not to get overdrawn. Here are some suggestions on how to lower the risks that come with being an Independent Contractor. 

Contractors Need Good Contracts
Remember the expression, the devil is in the details? Well, he’s in the details if you are lucky enough to get a contract. Unfortunately, many Independent Contractors are imprudent and they go into business even if the client has not given them a written contract. When this happens they are usually dependent on the good faith of the client. 

When there is a contract the independent contractor needs to carefully consider the terms and conditions of the contract. A lot of minor details that might not be important can be fatal should something go wrong. While it might entail additional cost it may be worth it to ask a lawyer to review the contract before it is signed. 

Workman’s Comp for Contractors
Independent Contractors will eventually grow to the point that they will hire their own employees. Whereas in the beginning, the contractor will be doing things on his own eventually at some point. They will reach a level of success where hiring employees are needed. 

When this happens the prudent Contractor will get workers comp for his workers so that they can work with confidence. If some mishap occurs then they can look forward to the workman's comp to take care of themselves while they recover.

At CSIS Insurance Services, Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (888) 501-2747 or Click Here to request a free quote.