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Working from home as an Independent Contractor has many perks! I don’t have to tell you- you know exactly why you want to work from home! However, something very important has come up several time during my years as an independent contractor- The dangers of being sued!
While it may sound like I am being slightly paranoid, it is a genuine concern many people have.
As an Independent Contractor you work for yourself. You represent yourself and most likely you signed a nice long contract before beginning work with your company of choice.
Recently this concern was mentioned in a forum in regards to working as a collector for a collection agency. There are many laws involved with being a debt collector and if you are not aware of those laws and violate them…you could possibly be held liable! What about those Direct Response lines where you must get the exact response after reading a script word for word? What if you make a mistake and sign someone up for something they didn’t actually agree to? As an independent contractor, you could be held liable if your lengthy contract does not say otherwise!
Yeah, I know that most likely the company you are contracted to work for would be held responsible. But it may not be worth the risk. If you are concerned about the dangers of working as an Independent Contractor, there are a few things you can do to secure your property from any lawsuits.
1. Be choosy about the company you work for. Collection Agencies will probably run a higher risk of lawsuit than say an appointment setter.
2. Play it by the books! Follow your scripts word for word and listen to your callers closely. The less mistakes you make, the less likely you will be faced with a lawsuit.
3. Incorporate yourself. Although many of these home based call centers don’t exactly treat you like a business entity, you are. Incorporating your business can take time and money but it will separate your personal property and money from your business. Meaning if you do ever face a lawsuit, your children and cats wont have to suffer over it.
Incorporating your IC business is the most ideal solution to the risk of being sued. There are several ways to go about the process and it can seem very intimidating! I would suggest beginning by learning more about what it means to incorporate. Then you can check out websites like the Small Business Association to learn more about how to go about the processes of incorporating. There are many companies online, such as MyCorporation and American Incorporators that will handle the headache of paperwork and will file all of it for you for a fee. Learn your options and make an informed decision.
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