Liability Insurance is needed.
I recently acquired insurance that was required by my primary client. This includes basic liability insurance for the most part. So hopefully within a week or two I will start being able to invoice them through my LLC instead of the staffing agency!
I went with State Farm. Probably not the cheapest, but it was quick and easy as I’ve dealt with the company before.
The price of the liability coverage was around $225 a year, which seems like a good rate. The worker compensation insurance on the other hand was $253 a year extra.
My client says that it requires workers compensation insurance. Saying something like: “Worker’s Compensation Insurance, in accordance with the laws of the State of IL, including Voluntary Compensation, Other States Coverage, and Employer’s Liability Insurance, with a limit of liability not less then $500,000 per each occurrence.”
Now this is all a big gray area. It sounds like they require it, but say it is only needed if the State says it is. From what I have read it may or may not be required. My lawyer said that it is required, at least I think that I remember him saying that… Something to do with be taxed as a s-corporation, and that I will be an employee of the company (the coverage I got does not cover myself though). I have yet to do a large amount of research on the issue, but it looks like I might be able to cancel the coverage. Eventually I will find out who in the State government I can contact to get this figured out.
(Edit: take note that I ended up canceling my worker compensation insurance, so if you are in a similar situation, you might be allowed to as well).