No matter how small your business, if you hire ICs, it is vital that you obtain general liability insurance to protect yourself against personal injury claims by people who are not your employees. A general liability insurer will defend you in court if an IC, customer or any other nonemployee claims you caused or helped cause an injury. The insurer will also pay out damages or settlements up to the policy limits. Such insurance can be cheaper and easier to obtain than workers’ compensation coverage for employees, so you can still save on insurance premiums by hiring ICs rather than employees.
If you don’t have general liability insurance already, contact an insurance broker or agent to obtain a policy.