Do You Need Business Insurance For Affiliate Marketing?
Not all affiliate marketers use business insurance and many affiliate marketers ask the question, “Do I need business insurance for affiliate marketing”. Although it may not be required, you may want to ask yourself why you’re asking “Do you need business insurance for affiliate marketing”. Why? The mere reason that you’re asking hints at the fact that you realize that things can go wrong in business and it’s best to have protection just in case. Although affiliate marketing doesn’t require an office, building, property, or even physical products, you are still selling online and it’s a good idea to get business insurance, just in case something goes wrong.
1. Business Owner’s Policy (BOP)
A business owner’s policy, or BOP, combines at least two essential business insurance policies into one package designed specifically to reduce costs in low-risk industries for small businesses. A BOP can help save costs over purchasing multiple policies individually.
Typically, a BOP provides protection for third-party bodily injury and property damage claims made against your company, including legal fees and settlement costs associated with claims alleging you caused harm or damaged someone else’s property in some other way.
Additionally, BOPs typically cover business interruption, which allows your business to make up any lost income due to insured events like fire or flooding and can help cover temporary location expenses as well. Certain coverages (like workers’ comp and commercial auto policies) may not be covered under a BOP policy and should instead be purchased separately; Next Insurance has an article outlining these specific types of coverage available through their policies.
2. General Liability
Affiliate marketers with large social media followings know the importance of having proper insurance policies, starting with accurate quotes from reliable providers.
General liability policies typically can be purchased individually or as part of a Business Owner’s Policy (BOP) and they usually cover general business problems that could occur, such as damage to a customer’s property, your business property, and liability for a range of defined issues that could happen. BOPs typically provide discounts when bundling multiple types of coverage together, making them a cost-effective solution for many small businesses. No matter, if you’re running an affiliate network or just getting started as an independent agent – having the appropriate business insurance, is absolutely critical.
3. Commercial Property Insurance
*In most cases, but not all, commercial property insurance would not be needed for affiliate marketers unless your affiliate marketing agency had a physical location that you own or leased and conducted business from (e.g. commercial real estate). Commercial property insurance offers businesses protection from the risk of damaging or losing physical assets belonging to their business, such as buildings they rent or own, office furniture, equipment, products, and inventory. Furthermore, this coverage can cover damages caused by fires, natural disasters, or any unforeseen events; landlords may even require it as part of your lease agreement.
Small business owners may find the insurance marketplace daunting, but help is available from various companies dedicated to matching them with policies tailored for their unique needs. One such provider is Next Insurance which offers a business owners policy (BOP) with commercial property coverage.
As a general guideline, when it comes to choosing an insurer with low premiums and deductibles, your primary consideration should be their claims reporting process and any specific elements relevant to your industry (for instance excluding coverage due to government action or nuclear hazards).
4. Professional Liability Insurance
When purchasing business insurance, comparing quotes from multiple providers is essential to find a plan that best meets the needs of your business at an economical price. Coverwallet provides an online service that allows users to do just this; simply answer some basic questions about your organization and then they provide quotes from suitable providers.
General liability and commercial property policies provide your business with important protection, but professional liability coverage may also be crucial in protecting it against lawsuits. This type of coverage covers damages related to services you provide such as providing bad advice, infringing copyrights, or misrepresenting work.
As an affiliate marketer, it may be a good idea for you to have adequate insurance coverage to protect against, errors, omissions, mistakes, and other issues and mainly to protect against lawsuits.
You can compare business insurance services here or below: