Estate Sale Company Insurance
Getting business insurance for your estate sale company is essential.
Estate sale companies need to be protected against claims involving legal liability and other things that could cost a lot of money, such as personal injury, breach of contract, and property damage.
For example, one of your employees is negligent and damages some of the estate’s property before the sale.
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 Estate Sale Company
General liability insurance is — generally speaking — one of the most important insurance policies for estate sale companies.
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 provides a good amount of coverage, your estate sale company may need additional policies that apply to specific situations that a general liability policy doesn’t cover. These can include, for example:
- Commercial property coverage
- Professional liability insurance
- Commercial umbrella insurance
There are two basic choices when buying business insurance: the conventional brick-and-mortar provider and the online provider.
Conventional providers have physical locations where agents sell policies. Many people like that personal touch, but it does cost more. Online providers sell insurance through their websites using AI, and their lower costs result in lower-priced insurance. Online providers also are faster. For these reasons, we recommend an online provider for your estate sale business.
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Cost of General Liability Insurance
The average estate sale company in America spends between $400 - $700 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for an estate sale company 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 Estate Sale Company
Example 1: While moving boxes from a client’s home to a company truck, an employee loses control of the dolly and it hits the client’s car. General liability insurance will cover your client’s vehicle repair costs.
Example 2: An employee accidentally collides with a client in your office hallway, causing her to fall and break a wrist. The client decides to sue. General liability insurance would pay for your legal fees and any damages awarded in a settlement.
Example 3: Following your interview with a local news outlet, in which you answered a question about other local estate sale companies, a competitor sues you for slander. Your general liability insurance would cover your legal fees and any damages awarded in a settlement.
Other Types of Coverage Estate Sale Companies 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:
Professional Liability Insurance
While you strive to help your clients earn maximum value from their estates, there’s still a chance one of them could find fault with your advice or services and decide to sue. Professional liability insurance would protect you in this situation by covering your legal fees as well as any damages awarded in a settlement.
Commercial Auto Insurance
Every vehicle you drive for business purposes requires commercial auto coverage. If you use personal vehicles for work duties, your personal car insurance won’t pay for damages to your car or medical treatment for anyone injured in a work-related accident. Commercial auto insurance protects all vehicles you use on-the-job in the event of an accident.
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 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 estate sale company:
- 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.
Estate Sale Company 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.
Given the risks posed by the nature of an estate sale company, it’s important to purchase appropriate business insurance before starting operations. Also, check to see if your state requires business insurance, such as commercial auto or workers’ compensation.
Not necessarily. Certain exceptions may be written directly into your estate sale company 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.