Business insurance is something to consider when you start any
business because any type of business may need the protection
that insurance provides from time to time.
An internet business is a little different from a traditional
brick-and-mortar business because generally, customers don’t
visit the place of business.
Also, most internet businesses are home-based, so homeowners’
insurance may cover basic business equipment such as a personal
computer and related computer equipment.
So, with an internet-based business, the primary concern is not
necessarily protection from loss of equipment and materials;
however, even an internet business may need some type of
There are several types of business insurance that many
businesses simply can’t do without. Some of the common types of
insurance for businesses include property insurance, liability
insurance, worker’s compensation insurance, malpractice
insurance, and prepaid legal insurance.
Of course there are other types of insurance for business owners
and their employees such as health, dental, vision, and life
insurance. Learning about these different types of insurance and
analyzing your own situation will help you to determine what type
of business insurance you need for your internet business.
Property insurance is sometimes required if you lease or finance
business property. If your internet-based business is in your
home, talk to your homeowners’ insurance provider to find out if
your homeowners’ policy covers your business equipment.
If it doesn’t, and the value of your equipment is minimal, it may
not be in your best interest to purchase a policy specifically to
cover your business equipment and fixtures because you may end up
paying more in insurance premiums than what your business
equipment and fixtures are even worth.
On the other hand, if you have expensive business equipment in
your home office, you may need to insure it against damage or
Liability insurance is a type of business insurance that any
business may need, even an internet-based business. Liability can
arise from just about any type of business.
If you provide products or services to consumers, or even to
other businesses, there is always a potential for liability.
Weighing your risk is the best way to determine whether or not
you need liability insurance for your business.
Worker’s Compensation Insurance
Worker’s compensation insurance is required for most businesses
that have employees. However, the requirements may vary from
state to state. For instance, in some states, you are not
required by law to have worker’s compensation insurance unless
you have three or more employees.
Worker’s compensation insurance is the type of business insurance
that pays medical expenses and lost wages for employees who are
injured on the job. Whether or not it is required by law for your
situation, if you have any employees at all, purchasing worker’s
compensation insurance will minimize your potential liability if
an employee is hurt on the job.
Malpractice insurance is necessary for businesses that provide
professional services such which require licensing. Professional
liability insurance is another term used for malpractice
insurance. It is necessary for businesses that provide services
such as counseling, medical services, architectural services and
Prepaid Legal Insurance
Prepaid legal insurance has become quite popular in recent years.
It is an insurance policy that covers legal expenses such as
attorney fees. Many individuals and businesses alike find that
prepaid legal insurance is a safety net that is desirable because
if they need legal assistance, they don’t have to worry about the
retainer fees and expensive bills from attorneys.
If you find that you frequently have to pay attorney fees for one
reason or another, prepaid legal insurance may be an option for
you to consider.