Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for affiliate marketing organisations.
This article will discuss the primary insurance coverage for affiliate marketing organisations, general liability insurance, as well as additional policies that are appropriate for this industry.
Affiliate Marketing Companies, 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.
GENERAL LIABILITY INSURANCE MAY COVER COMMON SITUATIONS FOR AFFILIATE MARKETING BUSINESSES
Example 1: A prospective affiliate visits your office and stumbles over a stack of boxes in the corridor, breaking her wrist and demanding that you pay for her medical expenses. Her therapy would be covered by general liability insurance.
Example 2: While making a sales call to a prospective lead’s house, you trip over an ottoman and hurl your product box onto a large-screen television. The expense of replacing the shattered television would be covered by general liability insurance.
Example 3: A rival accuses you of libelling them and sues your company. Your legal defence expenses would be covered by your general liability coverage.
Of course, this is not an exhaustive list of perils a general liability insurance policy will cover, and some conditions may result in a particular peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
Learn more about the risks covered by general liability insurance.
Cost Of General Liability Insurance
On average, affiliate marketing businesses in America spend between $400 – $700 per year for $1 million in general liability coverage.
Several factors will determine the price of your policy. These include 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 Affiliate Marketing Companies
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all affiliate marketing organisations should have are as follows:
Insurance for Commercial Property
Commercial property insurance would cover the expense of repairing or replacing your business-related property in the case of a fire, burglary, or natural catastrophe if you own the building in which you operate. This includes structural damage to your building or grounds, as well as any damaged goods or other business assets stored on your premises.
Insurance for Professional Liability
While you strive to provide helpful advice to your clients and affiliates, there is always the possibility that your professional affiliate marketing services harmed them. If they file a lawsuit, professional liability insurance would cover your legal fees and, if required, any settlement.
Coverage Options for Affiliate Marketing Businesses
In addition to the policies outlined above, there are a few other types of coverage your affiliate marketing businesses may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.
Commercial Auto Insurance
Any vehicle you use primarily for business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured, but also sufficient protection for any business supplies or equipment you carry in your vehicle.
Home-Based Business Insurance
If you run any part of your business from home, you may need this insurance to safeguard your equipment, products, and the space in your home devoted to your business. A typical homeowners insurance policy may not cover business-related items if you don’t disclose you use your home for business purposes.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it should not be your frontline defense. Yes, insurance will compensate for your business’ financial losses after an incident occurs, but it’s much better to avoid losses altogether.
With this in mind, here are several things you can do to better protect your business:
Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
Set up a limited liability company (LLC) or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
Stay up to date with business licensing.
Streamline your business’ internal processes. This will remove unnecessary variables from common tasks and create a safe, consistent environment for conducting business.
If your business is an LLC, look into LLC Insurance.