Insurance for a startup web business? Does anyone know if I should carry any?

by mobank
11 replies
Just starting out so I wanted to know if and what kind of insurance i should or should not carry.
Any thoughts?
#business #insurance #startup #web
  • Profile picture of the author allegandro
    Well, if you are new, and you have no idea about insurance... then DON'T do it.

    Insurance is overcrowded, with tens of thousands of wane bee IM who hope to make some money.

    But the real money is made by the top 1%.

    If you want to start in IM, take a niche that is close to your heart, you love and understand. Believe me, you WILL make money with it, with a minimum of effort and money.

    Read this, it might help you: http://www.warriorforum.com/main-int...ake-money.html
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    • Profile picture of the author mobank
      Let me explain. I'm starting a online business. I want to know as a DBA what kind of insurance, if any should I take out on myself/business as a sole proprieter
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  • Profile picture of the author frumweb
    You'll likely want a business owners policy, but you should talk to an agent. He'll be able to tell you what you need for your business.
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  • Profile picture of the author namehero
    Originally Posted by mobank View Post

    Just starting out so I wanted to know if and what kind of insurance i should or should not carry.
    Any thoughts?
    Ask your lawyer who formed the corporation. Depends on what you're doing and how big of a risk your taking .
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  • Profile picture of the author mobank
    Thanks a bunch. I now have liability INS.
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  • Profile picture of the author mobank
    Do many online businesses purchase liability insurance?
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  • Profile picture of the author colie3188
    For peace of mind... it's always better to have your ass covered, because you never know...

    Check an agent, or call your bank up who will probably recommend you one ;-)

    Good luck !
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    • Profile picture of the author OnlineStoreHelp
      Insurance is a good option but remember there are multiple ways of protecting you and your business. Most business owners can get by with what is called a BOP (Business Owners Policy) which normally includes General Liability, auto and sometimes property. It will not protect you from professional liability. So if you are a CPA and you get sued because you did someones taxes wrong, your BOP will not cover you. Understanding your risks is key.

      Contractual Risk Transfer - If you ignore this, insurance is essentially worthless. Companies use contracts to both scope out services but to also transfer risk.

      Corporate Structure. If you are in a C Corp, S Corp or Multi-member LLC, you can protect your the corporate veil from piercing to your personal assets. IANAL but single member LLC's are IMO worthless.

      I also would not suggest buying a package policy from an Agent, but from a Broker, and one that specializes in commercial policies. As much as you like your Insurance agent that insures your car, they just don't understand the commercial side of the business.

      Source: I was a corporate risk manager for two Fortune 500 companies in a previous life...
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  • Profile picture of the author trevordd
    You should definitely get a good lawyer for your business Look for linkagemind website. They helped me a lot with some difficulties, and they are really great guys
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  • Profile picture of the author dianakrall
    First of all it is clear that Insurance is a safe choice for a new business owner. There are numerous methods for securing you and your business but cheapest one is to outsource it. So, I recommend you an Insurance outsourcing company (Insurance Support World) which can provide your new business services all the security it need.
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  • Profile picture of the author Alex The Lion
    Professional Indemnity seems to be a common choice for online entrepreneurs; however, if you call up and speak to a reputable insurance company directly, they are typically pretty happy to give you some advice.

    Of course, conduct thorough research before purchasing anything.
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