I work currently as an IT contractor through a placement agency in Massachusetts, as a sole proprietor. I do not have any sort of liability insurance, or "workers comp" insurance for that matter.
I recently applied for a consulting position with a company in Connecticut, and when they asked if I was looking for a permanent (salaried) position or contract position, I told them that I would like to work as a contractor. They told me that for that I would need to make sure that I have various insurances besides just workers comp:
- One million dollars ($1,000,000.00) in comprehensive general liability insurance (each occurrence) and a minimum of three million dollars ($3,000,000.00) in comprehensive general liability insurance (aggregate)
- Five million dollars ($5,000,000.00) professional liability/errors and omissions insurance
- One million dollars ($1,000,000.00) automobile liability insurance covering bodily injury and property damage liability
- One million dollars ($1,000,000.00) third party bond or employee dishonesty coverage indemnifying them for losses caused by dishonest acts committed by Vendor’s personnel.
So the questions I wanted to ask are:
A. Are these insurance requirements because my contract role with this new company would be more direct (as opposed to being through a placement agency)?
B. Is it common in USA to have to get insurances like this, or are there some states where insurances are not required? (some roles that I have applied for have been in places like Texas and Arizona).
C. Do US companies require insurances also from off shore companies (in other countries, like India) they hire to work remotely? (In my case here some of these insurances are probably because I am expected to work on-site, but some of them could apply to remote work as well.)