Call Center Business Insurance
Getting business insurance for your call center is essential.
Business insurance policies cover a range of potential damages, including property damage, financial loss, and personal injury.
For example, a customer may sue claiming your service has fallen below the contractual standard. If so, you’ll be happy to know there is insurance to take care of such a situation.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Call Center
General liability insurance is — generally speaking — one of the most important insurance policies for call centers.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
However, your call center may face other hazards not covered by a general liability policy. Here are a trio of insurance policies to guard against those adverse occurrences:
- Professional Liability Insurance: A policy of this nature will cover call center employees from claims of negligence, mistakes, or failure to provide promised services or advice. This type of insurance can help protect the call center from potential lawsuits and financial losses.
- Cyber Liability Insurance: This type of insurance covers the call center in case of data breaches, cyberattacks, or other cyber incidents that can result in financial loss, reputational damage, and legal liabilities. As call centers handle sensitive customer information, having cyber liability insurance can help mitigate the risks of cyber threats.
- Workers' Compensation Insurance: As call centers typically have a large number of employees, workers' compensation insurance can provide coverage for employees who suffer work-related injuries or illnesses. This insurance can help cover medical expenses, lost wages, and other related costs, and can help protect the call center from potential lawsuits by employees.
When acquiring your business coverage, you will generally be able to choose between the following two types of insurers:
- Traditional brick-and-mortar insurers — Describes firms like The Hartford and Nationwide.
- Online insurers — Describes firms like Next and Tivly.
Each of these two types offers its unique benefits, though online insurers tend to be better suited to smaller firms due to the excellent value for money of their policies.
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Cost of General Liability Insurance
On average, call centers in America spend between $400 - $700 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a call center to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Discover the best coverage at the lowest rate in our cheapest business insurance review.
Common Situations That General Liability Insurance May Cover for a Call Center
Example 1: A client is visiting your call center. He is on his way to the restroom when he trips over a box left in the walkway. He breaks his wrist and asks that you pay for his medical treatment. Your general liability insurance will likely cover this expense.
Example 2: One of your competitors has determined that your latest marketing campaign libeled his business. You are fairly certain that you did not commit libel, but you know that you need an attorney to defend your business regardless. Your general liability insurance policy will pay for your legal defense fees.
Example 3: A visitor to your call center is coming in from the parking lot when she slips on some ice and breaks her hip. She sues your business, claiming you should have kept the area free of ice. Your general liability insurance will pay for your legal fees, including the cost of a settlement if one is required.
Other Types of Coverage Call Centers Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Worker’s Compensation Insurance
When you have employees, you need workers’ compensation insurance to protect them in the event that they are injured performing job-related duties. Your state likely requires that you carry workers’ comp if you are an employer. As long as you are carrying a policy, your employees can get medical treatment for their work-related injuries and assistance with lost wages while recovering.
Commercial Property Insurance
You have invested a significant amount of capital in the equipment that you use to operate your call center. If you were to lose it in an unexpected event, like a fire, you might find it difficult financially to replace it. With commercial property insurance, you can file a claim and get help from your insurer with replacement costs as long as the loss was caused by a covered event.
Commercial Umbrella Insurance
A commercial umbrella insurance policy is designed to protect your business if the limits of your general liability insurance are exceeded. This can happen in certain situations, like if you lose a major lawsuit. When the limits of your general liability insurance are exceeded, the umbrella policy will kick in and pay until its limits are reached.
Professional Liability Insurance
Professional liability insurance protects your business from negligence claims related to mistakes or failure to perform. If one of your clients decides to sue you based on mistakes your business made, your policy will pay for your legal defense fees, including paying settlements if they are required.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your call center:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Call Center Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Broadly speaking, the answer is yes. It's probable that a call center would need business insurance coverage right from the start. Insurance has the potential to shield the enterprise against a range of risks such as financial loss, personal injury, and property damage. Additionally, specific categories of insurance may be obligatory to adhere to state regulations.
Not necessarily. Certain exceptions may be written directly into your call center insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.