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Do You Need Business Insurance for Your Internet Business ?

Author: Christopher J Enders

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 insurance protection.

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

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 loss.

liability Insurance

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

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 so forth.

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.

Copyright Christopher J. Enders. Are you at the end of your rope, fed up and confused by all the scrambled internet marketing advice you're getting? Whether you are new to internet marketing, or a website owner who wants to make more money from your website, learn the proven strategies that will sky-rocket your internet business at