You do not necessarily have to let contractors you hire drive your company vehicle to be liable for their actions. In some situations, if you hire a contractor who performs negligent acts, your business may be held responsible. In cases like these having independent contractors liability insurance can save you from substantial losses. Depending on the situation and the nature of your business, having this type of coverage could even save your business from failing. This type of insurance is especially useful in the construction trades and similar businesses where the financial stakes are relatively high. Carefully checking a subcontractors credentials and reputation is not always enough. Mistakes can happen at anytime, and when they do it can mean financial trouble for your business.

Independent contractors liability insurance will not help in every situation, but it does usually provide a buffer between your business and the actions of your contractors. Having a good policy in effect can give you more confidence in hiring contractors. Confidence leads to speedy decision making and possibly more profit for your business on each job. Of course, the ultimate responsibility for securing competent workers lies with the company doing the hiring. However, even with the most diligent processes, errors in judgment can happen. When these mistakes occur, insurance can help reduce the losses.