Psychic Business Insurance
Getting insurance for your psychic business is essential.
Psychic businesses need to be protected against things like claims of fraud, breaches of contracts, and invasions of privacy.
For example, your business shares a client’s personal information without their consent, or a client claims that your guidance was fraudulent and caused them financial loss.
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 Psychic Business
General liability insurance is — generally speaking — one of the most important insurance policies for psychic businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Some other policies that your psychic business might be interested in include:
- Workers’ compensation insurance: If you employ anyone on a part or full-time basis, this is a legally required policy in most states.
- Commercial property insurance: Protects your business from the financial consequences of any damage caused to its physical assets by select risks.
- Home-based business insurance: Insures you against business-related accidents that occur at home.
Psychic businesses looking for coverage generally face a choice between the two primary types of insurance providers:
- Traditional brick-and-mortar insurers
- Online insurers
Online insurers, such as Tivly and Next, are better known for their value for money. Thanks to their digital approach, they can charge far lower prices for high-quality insurance than traditional firms.
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Cost of General Liability Insurance
On average, psychics in America spend between $350 - $750 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a psychic 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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Discover the best coverage at the lowest rate in our cheapest business insurance review.
Common Situations That General Liability Insurance May Cover for a Psychic Business
Example 1: As a client enters your studio for a reading, they trip on a rug and fall into a glass table. The impact shatters the glass, which seriously injures your client. General liability insurance would cover your client’s medical costs and any related legal fees if the client decides to sue for damages.
Example 2: When a potential new co-worker tours your break room, they slip on a wet floor and fracture a wrist. The injury requires surgery and they sue you for damages. General liability coverage would cover your legal fees and any payouts awarded in a settlement.
Example 3: Your biggest competitor believes you’ve defamed them in a recent ad campaign and sues for damages. General liability insurance would cover your legal fees and any payout awarded in a settlement.
Other Types of Coverage Psychic 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:
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability benefits stemming from a work-related accident.
Commercial Property Insurance
If you own the building in which your business operates, you’re responsible for all business-related property housed there in the event of a fire or other natural disaster. Commercial property insurance would cover the cost of repairing or replacing damaged computers, furniture, and other business equipment after an accident.
Commercial Umbrella Insurance
Even the most responsible business owners can sometimes face a lawsuit that threatens to exhaust the limits of their primary insurance coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Home-Based Business Insurance
If you operate from your home, you can't rely on your homeowner’s insurance policy to protect your business in the event of an accident. Consider adding a home-based business insurance policy to your existing homeowner’s policy or business owner's policy (BOP) to ensure adequate coverage for your business equipment.
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 psychic 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.
Psychic 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.
Yes. Your psychic business needs business insurance before it can start. Neglecting this essential aspect of running your business can open it up to many unnecessary financial losses.
Should your business grow to include employees or company cars, you will also likely be required by law to purchase insurance.
Not necessarily. Certain exceptions may be written directly into your psychic 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.