As the owner of a recovery based investigative business, ensuring comprehensive protection through various insurance types is critical to managing risks effectively. Based on my experience, I will outline the essential insurances, including those I personally use, such as U.S. Law Shield and legal expense insurance, and provide insights into their costs and benefits.
General Liability Insurance
This is something I have for my business and is usually required by commercial offices if you are renting an office.
Cost: $26 per month for a $1,000,000 policy.
Description: Covers bodily injuries, property damage, and advertising injuries that occur during business operations. It’s a foundational insurance for both fieldwork and office settings.
Self-Defense Insurance
This is an insurance that I maintain with the extras of bail and expert witness costs covered, as well as multi-state protection. I personally use US Law Shield.
Cost: Approximately $200 annually, with options for multi-state protection and bail assistance.
Description: Offers legal defense and damages coverage in self-defense incidents, crucial for anyone carrying a firearm for professional or personal protection.
Legal Expense Insurance
This is another insurance policy that I have and pay $40 a month for. Being someone that frequently publishes online, this insurance is invaluable, in my opinion! A frivolous lawsuit can cost you thousands. I happily pay the $40 / month.
Cost Estimate: Typically ranges from $250 to $500 annually for a comprehensive plan.
Description: Provides access to a network of attorneys for both personal and business legal matters, covering areas such as defamation defense and contract disputes. This insurance is invaluable for ensuring you have legal support readily available for a wide range of issues, safeguarding your professional and personal interests.
Commercial Auto Insurance
Cost Estimate: Typically between $1,200 and $2,400 per year per vehicle.
Description: Covers damages and liability issues related to business vehicle use, especially relevant for investigative activities that involve significant travel.
Worker’s Compensation Insurance
Cost Estimate: Varies widely depending on state laws and payroll size, often around 1% of total payroll.
Description: Mandatory in most states, it covers medical costs and lost wages for employees injured on the job.
Surety Bonds
If you have attorney clients, this is a must! My state doesn’t require this, but I learned early on that if an attorney is going to do business with you, they want you bonded.
Cost: $125 annually for a $10,000 bond.
Description: Provides a financial guarantee that the business will adhere to its contractual obligations, enhancing client trust.
Conclusion
Choosing the right mix of insurance policies is crucial for any investigative business. By understanding the costs and benefits of each type of insurance, you can tailor a comprehensive protection strategy that meets both professional and personal needs.
Let me know in the comments if I missed anything that you feel is an important business insurance to have.
Thanks for reading and if you’re interesting in learning what states you can easily pull criminal records in, click here!
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