Last Updated: February 21, 2024, 3:41 pm by TRUiC Team

Grant Writing Business Insurance

Getting insurance for your grant writing business is essential.

Grant writing businesses need to be protected against claims involving things that could reasonably happen, particularly in relation to professional negligence or breach of contract issues. 

For example, a client may claim that you offered reckless advice in relation to a grant application, or one of your grant writers may claim that you fired them unfairly. 

We’ll help you find the most personalized and affordable coverage for your unique business.

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Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Grant Writing Business

General liability insurance is — generally speaking — one of the most important insurance policies for a grant writing business. 

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

Having said that, you may be required to purchase additional coverage in order to fully protect your business’s assets. 

Additional policies worth considering include:  

  • Professional liability coverage: This is also known as errors and omissions coverage, and will protect your business’s assets from negligent acts and/or omissions.
  • Commercial umbrella policy: This is similar to a general liability policy but with “extra” coverage. Simply put, when your general liability is not enough (i.e., when damages exceed the cap.), this policy will kick in.
  • Business income coverage: This type of policy will cover part of your lost income if you need to temporarily shut down. Keep in mind that this is only if you shut down as a result of a risk that is covered within your policy.

You will also need to find the right business insurer in order to get started; you can go with a traditional brick-and-mortar insurer (e.g., The Hartford, Hiscox, etc.) or with an online alternative (e.g., Next, Tivly, etc.). 

We generally recommend online insurance options for small business owners since it is more affordable while still retaining a high level of personalized coverage. This is because of the lower overhead involved (i.e., no agent, etc.).

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Cost of General Liability Insurance

On average, grant writing 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 grant writing 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.

Graph showing average price of general liability insurance prices per industry

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Find the Best Rate

Discover the best coverage at the lowest rate in our affordable business insurance review.

Common Situations That General Liability Insurance May Cover for a Grant Writing Business

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Example 1: During a tour of your office, a potential investor trips over a box, breaks an arm, and decides to sue your business for damages. General liability insurance would pay for your legal defense fees and any required settlement.

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Example 2: As an employee moves several boxes of office supplies into your building, he accidentally knocks a customer to the ground. The customer breaks a wrist in the fall and demands your business pay for her medical expenses. General liability insurance would cover her medical bills.

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Example 3: A competitor sues your business for libel. While you disagree with the claim, you know you need to hire an attorney to defend your company. General liability insurance would cover your legal fees and any required payout if you opt to settle out of court.

Other Types of Coverage Grant Writing 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

You made a major investment in the supplies, office equipment, and real estate needed to run your writing business. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building and the business materials stored there.

Professional Liability Insurance

While you strive to provide services that satisfy your clients, there’s always a chance someone might claim your advice or recommendations caused them harm. If a client sues your business, claiming you made a mistake or failed to perform, professional liability insurance would cover your legal fees and any required settlement.

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 or death benefits stemming from a workplace 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 grant writing 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.

Grant Writing 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.

Even though you do not necessarily “need “ to get business insurance from a legal point of view, it is generally recommended for several reasons, including the fact that it is practically impossible to predict when you will actually need it. 

That all being said, note that some forms of insurance coverage (e.g., workers’ comp, etc.) can also be legally required depending on your employee structure.

Not necessarily. Certain exceptions may be written directly into your grant writing 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.