Affiliate Marketing Business Insurance
Getting insurance for your affiliate marketing business is essential.
Affiliate marketing businesses need to be protected against claims involving things such as defamation, false advertising, and negligence.
For example, a client may accuse you of promoting unsafe products, or a partner may claim that you violated your contract with them.
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 an Affiliate Marketing Business
General liability insurance is — generally speaking — one of the most important insurance policies for affiliate marketing businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
While it is true that general liability is a great policy for businesses, there are many others that affiliate marketing businesses may need in order to be fully covered, including:
- Professional liability insurance
- Commercial auto insurance
- Home-based business insurance (if you operate out of your home)
- Commercial property insurance
- Business interruption insurance
When looking for places to purchase insurance, providers are generally divided into two categories: those with a physical store and those based entirely online.
We recommend choosing online providers as a small business because they are able to provide quicker, cheaper, and accurate insurance that matches the quality and reliability of traditional providers.
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Cost of General Liability Insurance
On average, affiliate marketing businesses in America spend between $400 - $700 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for an affiliate marketing 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 an Affiliate Marketing Business
Example 1: During a visit to your office, a potential affiliate trips over a stack of boxes in the hallway, breaks her wrist, and demands you pay for her medical treatment. General liability insurance would cover the cost of her treatment.
Example 2: While making a sales call to a potential lead’s home, you accidentally fall over an ottoman and fling your box of products into a big-screen television. General liability insurance would cover the cost of replacing the smashed television.
Example 3: A competitor claims you libeled them and sues your business. Your general liability policy would cover your legal defense costs.
Other Types of Coverage Affiliate Marketing 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
If you own the building in which you operate, commercial property insurance would cover the cost of repairing or replacing your business-related property in the event of a fire, burglary, or natural disaster. This includes structural damage to your building or grounds as well as any damaged products or other business materials you store there.
Professional Liability Insurance
While you strive to offer helpful advice to your clients and the affiliates underneath you, there’s always a chance someone could decide your professional affiliate marketing services caused them harm. If they file a lawsuit, professional liability insurance would cover your legal fees and, if required, any settlement.
Commercial Auto Insurance
Any vehicle you use primarily for business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured, but also sufficient protection for any business supplies or equipment you carry in your vehicle.
Home-Based Business Insurance
If you run any part of your business from home, you may need this insurance to safeguard your equipment, products, and the space in your home devoted to your business. A typical homeowners insurance policy may not cover business-related items if you don’t disclose you use your home for business purposes.
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 affiliate marketing 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.
Affiliate Marketing 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.
Considering the potential risks associated with the market, it would be very helpful for your affiliate marketing business to acquire adequate business insurance before it starts to launch its operations.
Furthermore, to ensure compliance with state-specific laws, your business may need to hold some forms of insurance anyway (such as workers’ compensation or commercial auto insurance).
Not necessarily. Certain exceptions may be written directly into your affiliate marketing 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.