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Does Anyone Have Business Insurance?

and how much is it?

     
11:26 pm on May 21, 2004 (gmt 0)

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I run a few sites but none of them deal with customers or orders. Also, none of them are risky and doubt I'll ever get sued, but who knows. If it's just a few hundred $$ a year I'd get it as "just in case".

any experiences or comments? I'm incorporated but it's run from my house and until lately the record keeping was mixed with my personal finances (not good if I get sued).

3:09 am on May 22, 2004 (gmt 0)

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Insurance for most self-employed professionals falls into three categories:
  1. Property Coverage:
    • building and fixtures
    • contents (equipment, furniture, stock) - special riders for computer system (including equipment breakdown), software, and storage media are a must; perhaps also goods in transit, business personal property both off-premises and in-transit, etc.
    • commercial auto policy
    • personal injury

  2. Liability/Professional Indemity/E&O:Errors and Omissions:
    • breach of professional duty
    • breach of copyright
    • breach of confidentiality
    • libel and slander
    • loss of documents

  3. Business Interruption/Loss of Income/Keyman Coverage.

You may also require/want Worker's Compensation coverage.

Yes I have insurance (most of the above). Note that some clients require certain minimum insurance coverage - especially Professional Indemity.

Costs vary. Discuss your situation with at least three independant insurance brokers (it's free!) and your accountant (not free) to get an idea of probable needs and costs. Typically from several hundred to many thousand per year premiums. Deductables are usually at least $1000. Liability is the costly one, followed by Loss of Income, with Property usually being the least expensive.

4:53 am on May 22, 2004 (gmt 0)

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"Liability/Professional Indemity/E&O:Errors and Omissions:"

thank you for the explanation. I'll probably get this one just in case.

5:10 am on May 22, 2004 (gmt 0)

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Ask a commercial insurance broker about a Standard Multi-Peril policy, a/k/a SMP policy.

Keep in mind that in most cases the first $100,000 of coverage costs about the same, if not more than the next $900,000 of coverage.

You would be amazed at the range of products that have resulted in serious injury. If you are 50+ you will remember how stuffed animals came with eyes that were easily pulled off. Babies choked to death while mom and dad slept. You will also remember children's clothing that used to burst into flame.

Ahhhh, the bad old days, before all of that product liability litigation lead manufacturers to rethink product safety. Now, the manufacturers just buy congressmen and senators who are willing to pass laws that immunize manufacturers from the harm they inflict.

 

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