Protective liability insurance is liability insurance that is used by contractors or business owners to cover risks associated with independent contractors that they may hire. In other words, protective liability coverage provides coverage for gaps that may exist on other types of liability insurance for certain business owners or contractors
Even though independent contractors are not a part of a contractor's company, the contractor can still be liable for injuries or property damages that an independent contractor makes while working for the contractor. For example, if a contractor hires an independent contract to install a new sidewalk on a home, and the independent contract causes an injury to a resident of the home while doing the job, the contractor could be liable. Protective liability insurance protects contractors from such exposures.
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