General Liability

• General liability insurance covers injuries caused to another party. Sales contractors are potentially liable for injuries whether the other party's injuries are actual or perceived. In other words, if the other party "perceives" that the contractor's actions caused physical or financial harm, they have a liability case against the contractor. General liability insurance pays for legal expenses, court costs and the costs of resolving a lawsuit between the contractor and the injured party.
  
  

Professional Liability

• Independent sales contractors who perform professional services need professional liability insurance. This type of insurance protects the contractor if a client experiences some type of loss due to the contractor's negligence. Independent insurance sales agents, for example, must purchase errors and omissions insurance, which is a type of professional liability policy. Errors and omissions coverage protects the agent if he fails to disclose pertinent information, which causes the client to suffer a loss. A real estate agent is another type of sales contractor who needs professional liability insurance to protect against negligence claims.
  
  

Product Liability

• Product liability insurance is a necessity for independent sales contractors who sell products that could potentially injure a client. If a customer suffers bodily injury or property damage after using a product, or if a defective product causes an injury, both the product manufacturer and the sales person are liable. Product liability insurance protects the sales contractor financially if a client files a lawsuit. Depending on the type of products sold, the contractor can purchase the amount of insurance necessary based on his level of liability exposure. For example, if the contractor sells lawn equipment, he experiences a greater exposure to liability than someone who owns a retail-clothing store.
  
  

Vehicle Insurance

• An independent sales contractor who uses his vehicle primarily for business purposes must obtain business vehicle insurance. Some personal insurance policies cover business use to a certain extent but if the contractor transports clients or uses the vehicle primarily for business purposes, the contractor needs a business insurance policy. A business vehicle insurance policy provides liability protection in case the contractor causes bodily injury or property damage to another party while on a sales call or while performing job duties. The policy also provides coverage for physical damage to the insured vehicle. This coverage pays to repair the insured vehicle after a loss.