I am new on the Forums and saw your question. I actually do carry business liability insurance and have for a number of years. I also have worked with a number of insurance agents over the years and know the possible consequences or not carrying it. One agent actually told me I did not have the 'right' insurance, but nobody can afford the 'right' insurance - Lol.
So, basically, I carry a liability policy in case I or my subs (although in reality they should be carrying their own) should make a mistake that costs my clients money (or clients, etc...). Now, I also have it in my contracts that I am NOT liable for lost business or clients or perceived lost business or clients. In reality, anyone can sue anybody for anything, but my hope is that I have it fairly well covered.
My coverage cost between $450-$500/yr (or can break it into monthly payments also). I hope this helped you a little.
Hi Tammy: Thank you for your response to my question, and I agree. As a new VA, I'm trying to manage costs and determine priority costs. I'm sorry it took me so long to respond, family crisis. All's well now, but just wish I'd responded earlier.
No Worries, just glad it could help you. It is difficult in the beginning, but be sure to have a proper contract in place, so you do not get 'burned' either. If you look at it, the contract is mostly to protect you and the insurance is to protect your client -as they would benefit from claim (other than damage to property), yet protects you in the sense that they should not be able come after your assets . I also recommend to incorporate (LLC), as this takes the personal liability away - (remember I am not a lawyer, just my understanding) and puts it on the business. Many of us, however, started out as sole proprietors in the beginning, simply sending in a small fee to our county to start a business:seeya:.
If I had to do over again, I WOULD get insurance, even as a sole proprietor (maybe even Because of being one). Sole proprietors (to the best of my knowledge - again, not an expert -so if anyone knows differently please weigh in) - run more personal risk with a business. Unless laws have changed, the client, if something happened, could come after PERSONAL assets.
I, personally, did not realize the risk at that time. I did not obtain liability insurance until after I was an LLC. In today's world you just never know. Even the best client can perceive that you did something that could cost their business and/or clients business and sue. It is a crazy world we live in.
One other thing that may help is that I did not realize (until after I obtained insurance) that home owner's insurance (most insurance companies) would not cover my office belongings. It will re-build the premises (house), but not replace my desks, computer, copiers, etc... (and that adds up also, if something happened). If you like to 'play it safe', I would recommend insurance, although you probably will not find it under $450 -$500/year probably, so be prepared (most will do monthly payments). I'd love to know what you do, so please update.
I'm a new VA and looking into insurance options for my LLC business. I spoke with one insurance brokerage firm here in CT and was told they may not be able to help me because my income is not high enough.
Based on what I see in this thread I know I can afford $500 per year for basic coverage even with my modest revenue. I wonder if the broker I spoke with is simply confused about what a VA business does and this is impacting her ability to connect me with the appropriate insurance coverage.
Does anyone have an insurance broker that they would like to recommend to help me insure my VA business?