Bounty Hunter Business Insurance
Getting insurance for your bounty hunter business is essential.
Bounty hunter businesses need to be protected against things like claims of assault and battery, unlawful detention, and negligence.
For example, your business could be faced with a false imprisonment claim if an employee accidentally apprehends someone outside of the scope of their authority.
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 Bounty Hunter Business
General liability insurance is — generally speaking — one of the most important insurance policies for bounty hunter 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 general liability insurance is a great foundation, many bounty hunter businesses opt for several supplementary insurance policies for added protection:
- Data breach insurance
- Professional liability insurance
- Workers’ compensation insurance
- Commercial auto insurance
- Commercial umbrella insurance
If you decide to safeguard your business with insurance, there are typically two primary groups of providers who will sell it to you:
- Traditional brick-and-mortar insurers: These are companies that have provided coverage for many years and have offices you can visit in person to chat with a representative about your insurance options. While they have a lot of experience, they can be costly due to their high overheads.
- Online insurers: These are companies that take advantage of AI technology to be able to provide insurance quotes purely online. Since they don’t have to pay for business property or as many employees, they are able to provide their customers with insurance at a more competitive price.
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Cost of General Liability Insurance
On average, bounty hunters 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 bounty hunter 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 Bounty Hunter Business
Example 1: One of your employees accidentally knocks a pedestrian down while in pursuit of someone. The pedestrian sues for repayment of his medical bills as well as damages from pain and suffering. General liability insurance should cover your legal fees and any damages awarded in a settlement (up to the limits of your policy).
Example 2: One of your bounties sues your company, citing misuse of force and improper use of handcuffs. General liability insurance would cover your legal fees as well as any damages awarded in a settlement.
Example 3: A bounty names your business and the county in a lawsuit, citing false arrest and slander. General liability insurance should cover any related legal fees and awarded damages.
Other Types of Coverage Bounty Hunter 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:
Data Breach Insurance
As a bounty hunter, you store sensitive information regarding each of your bounties. If a hacker attacks your computer system and steals any of your data, you could face a lawsuit. Data breach insurance covers fees and damages associated with these situations — a coverage often excluded in general liability policies.
Professional Liability Insurance
Professional liability insurance protects your business if you or your employees make an error that results in a financial loss and/or lawsuit. Given the significant liability risks in this line of work, business owners should address any potential coverage gaps with their insurance professional. Be sure to ask if your policy is claims-based or occurrence-based as well as if it includes coverage for fugitive recovery, wrongful entry, wrongful seizure, abuse and molestation claims, and incidents involving concealed weapons.
Workers’ Compensation Insurance
You and your staff regularly encounter dangerous situations in pursuit of criminals, which sometimes result in on-the-job injuries. Workers’ compensation insurance, required by most states, 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 or death benefits stemming from a work-related accident.
Bounty hunter business owners should consider carrying coverage above and beyond the legal minimum requirements, and you typically can purchase this as a standalone policy.
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. While most states regulate the minimum coverage required, this often leaves business owners exposed to potential lawsuits. Therefore, consider seeking the assistance of an insurance professional to help you determine the appropriate coverage limits for your business.
You can purchase commercial auto insurance as part of a business owners policy (BOP) or as a standalone policy.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
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 bounty hunter 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.
Bounty Hunter 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, it is vital that you get insurance for your bounty hunter business before its operations commence. If you choose not to, your business could potentially lose a lot of money if it faces one of the many risks inherent to the industry (e.g., bodily injury, false imprisonment, etc.).
Your business may also meet the criteria to carry specific policies (e.g., workers’ compensation or commercial auto insurance).
Not necessarily. Certain exceptions may be written directly into your bounty hunter 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.