Longarm Quilting Business Insurance
Every longarm quilting business needs insurance. Knowing which type of insurance you need and the best place to get it is the next step.
This article will cover the main types of business insurance and help you find the best longarm quilting business insurance.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Longarm Quilting Business
The most common and comprehensive type of longarm quilting business insurance is general liability insurance. We recommend general liability insurance as your first line of defense against a variety of the most general and commonly occurring claims.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
While a longarm quilting business isn’t legally required to carry general liability insurance, operating without it is extremely risky. If your longarm quilting business is sued, you could face fees totaling hundreds of thousands of dollars (or more).
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Cost of General Liability Insurance
On average, longarm quilting businesses in America spend between $300 - $600 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a longarm quilting business 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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Common Situations That General Liability Insurance May Cover for a Longarm Quilting Business
Example 1: Your client has left her sewing machine with you, as she is hoping you might be able to fix an issue. Your employee knocks it off the table, destroying it. General liability insurance should cover the cost to replace this expensive equipment.
Example 2: During a class you are teaching, a student injures herself, requiring medical assistance. A general liability policy should cover her medical bills.
Example 3: On a social media post, an employee implies your competitor is unprofessional. The company has named you in a lawsuit, claiming they have lost revenue from this slander. General liability insurance should cover your legal representation and court-awarded damages.
Other Types of Coverage Longarm Quilting Businesses 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:
Commercial Property Insurance
Commercial property insurance, often written as part of a business owner’s policy (BOP), insures the business-owned property, including the repair and/or replacement of the building and business property kept onsite.
To ensure proper coverage, policyholders should review coverage limitations and potential added endorsements. Entrepreneurs working out of their home should inquire about the cost of home-based business insurance.
Workers Compensation Insurance
Once your company has grown enough to have team members, the state will require you to cover them on a worker’s compensation policy. If an employee injures themselves performing business activities, the policy would pay their medical expenses and a portion of their lost wages. It will also protect you should a lawsuit arise from the accident, providing legal defense and court-awarded damages and/or settlements.
You can purchase workers compensation insurance as a standalone policy.
Business Interruption Insurance
If your business has to shut down after a property claim, the financial impact could prove devastating. Business interruption insurance, also known as business income insurance, lessens that burden. It provides loss of income, fixed expenses, and extra expense coverage, setting the business up at a temporary location while building repairs are being completed.
This insurance is generally offered as part of a business owners’ policy (BOP) package.
Commercial Auto Insurance
If a business-owned vehicle is in an auto accident, commercial auto insurance can pay for the repairs to damaged vehicles, as well as medical expenses, liability claims, and lost equipment. While the state mandates this policy’s minimum limits, owners should consider purchasing higher than the required minimum.
You can purchase commercial auto insurance as a standalone policy or as part of a business owner’s policy (BOP).
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 longarm quilting business:
- 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.
Longarm Quilting 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.
You should invest in business insurance coverage for your business before your first interaction with a customer. Although the cost of insurance may seem high for a brand new business, it’s best to be proactive when it comes to protecting your assets. After all, you can’t buy insurance to cover a loss that has already occurred.
Not necessarily. Certain exceptions may be written directly into your longarm quilting business 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.