Company insurance is intended to safeguard the financial assets of a business owner and is a crucial investment for a bounty hunter.
This article will discuss the primary insurance coverage for bounty hunters, general liability insurance, as well as additional policies that are appropriate for this industry.
Bounty Hunters Need General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
COMMON SITUATIONS THAT A BOUNTY HUNTER’S GENERAL LIABILITY INSURANCE MAY COVER
Example 1: While pursuing someone, one of your staff accidently knocks down a passerby. The pedestrian seeks reimbursement for his medical expenditures as well as compensation for pain and suffering. General liability insurance should cover your legal bills as well as any settlement losses (up to the limits of your policy).
Example 2: One of your bounty claims overuse of force and inappropriate use of handcuffs and sues your firm. General liability insurance would cover your legal bills as well as any settlement amounts.
Example 3: A bounty sues your company and the county for wrongful arrest and defamation. Any relevant legal bills and awarded damages should be covered by general liability insurance.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
In the United States, bounty hunters pay between $400 and $700 each year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required by Bounty Hunters
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that every bounty hunters should get are as follows:
Insurance for Data Breach
You keep confidential information about each of your bounties as a bounty hunter. You might be sued if a hacker breaches your computer system and takes any of your data. Data breach insurance pays for the expenses and damages connected with these circumstances, which are often excluded from standard liability plans.
Insurance for Professional Liability
Professional liability insurance protects your company in the event that you or one of your workers makes a mistake that results in a financial loss and/or a lawsuit. Given the considerable liability risks in this area of work, company owners should consult with their insurance consultant about any possible coverage gaps. Inquire if your policy is claims-based or occurrence-based, and whether it covers fugitive recovery, unlawful entrance, wrongful seizure, abuse and molestation, and instances involving hidden weapons.
Insurance for Workers’ Compensation
You and your team face perilous conditions on a daily basis while on the hunt for criminals, which might result in on-the-job injuries. Workers’ compensation insurance, which is needed in most jurisdictions, covers your workers if they are hurt on the job or get sick as a result of a work-related accident. It covers not just an employee’s medical expenditures and missed pay if they need time off to recuperate, but also any disability or death benefits resulting from a work-related accident.
Bounty hunter company owners may consider having coverage over and above the required minimums, which can usually be purchased as a separate insurance.
Types of Insurance That Bounty Hunters May Require
In addition to the policies listed above, your bounty hunter may need other forms of coverage based on particular parts of your business. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Commercial Vehicles
In the case of an accident, any car you use mainly for work needs commercial auto insurance to cover the vehicle, driver, and others on the road. While most states control the minimum necessary coverage, this sometimes exposes company owners to possible litigation. As a result, seek the advice of an insurance specialist to help you decide the right coverage levels for your company.
Commercial vehicle insurance may be purchased as part of a business owners policy (BOP) or as a separate policy.
Umbrella Insurance for Businesses
While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy out of pocket.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.