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  1. #1
    Join Date
    Oct 2013
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    Hosting Insurance

    I can't seem to find much info on this.. But is there any particular kind of insurance needed for running a Shared Hosting firm?

    I wouldn't have a building, Working out of my home, Server is a dedicated box. Only selling shared packages..

    So.. how would insurance work for this? Suggestion on companies?

  2. #2
    Join Date
    Oct 2007
    Location
    Hong Kong
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    1,248
    What are you trying to insurance against?
    HostGamma.com | HostGamma Europe | HostGamma Asia
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  3. #3
    Join Date
    Oct 2013
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    Pennsylvania
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    Data loss is what I would assume, Trying to form a legit business and not sure how to approach getting insurance.

    CC's and PayPal will be handled by PayPal, so billing is covered, the server will run Plesk and be managed with WHMCs...

  4. #4
    Join Date
    Jan 2003
    Location
    Canada
    Posts
    2,125
    Why would you be taking any responsibility for data loss? You can offer backups, but never guarantee it.

    You probably won't find any insurance for this. If you do it will be crazy expensive. I don't even see how you could value the data. It would be changing on a per minute basis.
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  5. #5
    Join Date
    Oct 2013
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    Pennsylvania
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    Good point, just wanted to make sure I have all my bases covered.

  6. #6
    Join Date
    Jun 2003
    Location
    California
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    2,766
    You can get a general liability insurance policy, but you will probably need to have your Terms of Service and Accepted Use Policy set beforehand. And those documents are probably the most important things, even more important than general liability insurance.

    No one guarantees against data loss (at least in the hosting world). Read the Terms of Service of some providers to get an idea.

    You also will want to limit any monetary guarantees to actual money paid, pro-rata for the time down, as verified by independent monitoring agency -- otherwise, when a cable cut happens between you and your PITA client you will end up paying for the site being "down".

    People will pay you $4 a month for hosting, then insist they lost $25,000 when you were down for ten minutes. You have to plan for the jerks, so have a good Terms of Service.

  7. #7
    Terms of service is not bullet proof in court. Get insurance, if anything it will cover legal defense costs when you get sued (it will happen eventually).
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  8. #8
    Join Date
    Jan 2003
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    Canada
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    Quote Originally Posted by fshagan View Post
    People will pay you $4 a month for hosting, then insist they lost $25,000 when you were down for ten minutes.
    This couldn't be anymore true
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  9. #9
    Join Date
    Oct 2013
    Location
    Pennsylvania
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    Quote Originally Posted by rits View Post
    This couldn't be anymore true
    I remember that when working for NetSol. Horribly ran company but they had outages like mad and every customer had $50,000+ lost in sales for 5 minutes.

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