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This can help make filing a lawsuit economically feasible and will give the IC an additional reason to settle if you have a strong case. And, of course, it will make you pause if you are considering filing suit with a weak case. Note carefully that this “attorneys fees and costs” clause only covers disputes arising under your contract. It will not, for example, cover a lawsuit by the IC against you for personal injuries. Nor will you be entitled to attorney fees if a contractual dispute with the IC is settled before trial unless you get a concession from the IC that you are the prevailing party.
Termination with notice Some hiring firms just can’t live with the limited termination rights described in Subsection a, above. They demand the right to terminate an IC for any reason. Such a right is not supportive of the worker’s IC status. However, if most of the other aspects of your relationship strongly suggest that the worker is an IC, you may be able to get away with it. For example, you can get away with unfettered termination rights if you’re paying the IC by the project instead of by the hour, the IC has recurring business expenses, multiple clients and employs assistants.
500,000 to $1 million in coverage is usually adequate. But you might want the IC to have even more coverage if he or she is engaged in a hazardous activity. If you’re not sure how much coverage to ask for, ask your own insurance broker or agent to advise you. com The insurance clause also requires the IC to add you as an “additional insured” under the policy. This step is a low-cost endorsement the IC can easily have added to his or her liability policy by simply calling his or her agent and asking for it.