There are several types of insurance coverage you should consider as an independent contractor.
Comprehensive General Liability (CGL) Insurance
This is also known as commercial general liability insurance. This important basic level of insurance is very broad and should cover any kind of external property damage or bodily injury that your business may be held liable for. Personal injury (slander or libel) and advertising injury (copyright infringement in your advertising) are generally included.
Depending on the level of protection you purchase, things like vehicles and equipment may or may not be covered. You should confirm the details with your insurer.
Professional Liability (PL) Insurance
As a professional contractor who provides specialized strategic services, you know that the work you do is often a matter of survival for the organizations who are your clients. You may be held to a higher standard than a traditional employee, and may be held accountable for the business consequences of your actions.
Professional liability insurance goes above and beyond the coverage you can get with comprehensive general liability insurance. It protects you and your company against charges of negligence, intellectual property infringement, or errors and omissions. The exact level of protection will depend on the level of coverage you purchase.
Worker’s Compensation Board (WCB) Insurance
Worker’s Compensation may or may not be compulsory, depending on your province of residence. It provides support for workers who are injured on the job, either as the result of an accident or who become sick from an occupational disease.
If you are an incorporated business with your own employees, you should consider purchasing protection in case one of your employees is injured while at work and files a lawsuit.
Private Health Spending Plan
For those consultants who are a) incorporated and b) draw a mix of salary and dividends from their corporation, one of the best ways to keep more of your hard earned money in your pocket is through a Private Health Spending Plan. As an added value to our consultants, Donna Cona has arranged for a waiver of startup fee and a discounted administrative fee on medical/dental claims through navancorp. There are never any premiums to pay, nor any ongoing fees. You are encouraged to speak to your accountant to see if a Private Health Spending Plan is right for you.
- Federal Government Worker’s Compensation Board page – including a guide for employers
- Alberta Worker’s Compensation Board
- Work Safe British Columbia
- Worker’s Compensation Board of Manitoba
- Workers’ Compensation Board of the Northwest Territories and Nunavut
- Ontario WSIB
- navancorp Private Health Spending Plan FAQ’s
Donna Cona advises you to get the best protection that you can afford and to always make sure you know what is covered and not covered under the terms of your agreement.