I wonder, how many of you are insured?

What do you typically get insured for? I assume hardware is a basic requirement, but what about liability? How much does it typically cost? Do you buy locally, or is there some organization that offers insurance discounts?

Thanks!

Brian

General business insurance for hardware workmans etc... Call a local insurance broker and get a free quote.

Brian, There are several types of insurance...

Liability: This protects you and your business if you are sued or are negligent and cause someone else harm or loss. If you have something to lose, you should be insured. If you are incorporated, I would only insure for what you could reasonably lose. For example, if your business is worth $20K, you should be fine with basic insurance with a couple hundred thousand of coverage. If your business was sued, what could you lose? If you are not incorporated (you may consider incorporating) you will need more coverage as you need to protect future earnings. You may not have much now, but what could you have in 5-10 years.

You will also need to look at your other needs. For example, if you colo or have an office, your colo company or landlord may require insurance.

Property: This covers your business property. Servers, computers, office furniture, etc. You need coverage to cover you if it all burned up or walked out the door. If you colo a server, make sure the colo location is listed. Most colo facilities don't insure your equipment for anything other than their negligence.

Worker's Comp: You are only required to carry this if you have more than x employees (varies by state). Owners don't count until you reach that number (ie if it is you or you and a partner it isn't needed). Once you have an employee, even though it isnt required, I recommend getting it. It isn't expensive and can really save your behind. If an employee is injured on the job, on the way to the post office, etc. the employer is liable. Even if they are in a car accident you are liable.

Business Interruption: This is usually part of your property & liability insurance policy. Covers cost of temporary office or move, etc in event of a disaster or some reason the business is interrupted (fire, flood, etc).

Other types are nice but not necessary (errors & omissions, key man life, etc).

I would find a local commercial insurance broker. Go to friends or other local business owners to get referrals.

Thanks Brad for the informative post. I haven't dealt with business insurance since I haven't had much in assests until this point. I wasn't sure if there were specific host-specific issues I should be aware of.

Thanks,

Brian

Brad,

I actually am looking into the same thing right now. I just insured my full time employees for all medical + workman comp stuff for 3 mil. ($120 / person / mo) but I need to get a nice shield for lawsuits coming from customers. I found out this x-mas break that I can personally be held liable if someone sues us for millions of dollars because I am an officer of the corp. So .. Time to get some insurance =))