Last Updated: February 22, 2024, 11:45 am by TRUiC Team

Online Courses Business Insurance

Getting insurance for your online course business is essential.

Online course businesses need to be protected against things like claims of breach of contract, misrepresentation, and professional malpractice.

For example, a customer could file a lawsuit claiming that one of your courses was different than advertised, or a rival company could claim that you’re infringing on a trademark.

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 an Online Courses Business

General liability insurance is — generally speaking — one of the most important insurance policies for online courses businesses. 

Some of the risks general liability insurance covers are:

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

General liability is an essential foundation of protection for your company. However, you may want additional coverage for your online courses company. If so, check out some of the following policies:

  • Professional liability insurance for any advice your course creators provide that someone says is negligent
  • Workers’ compensation insurance for any employees you hire
  • Data breach insurance: to cover legal fees and any resulting judgments if a hacker steals your customers’ data. 
  • Commercial umbrella insurance if you reach the limits of your other policies

When looking for an insurance provider, consider that there are two primary types that each have positives and negatives, depending on your situation:

  • Traditional brick-and-mortar insurers like Nationwide or Allstate
  • Online insurers like Next or Tivly

In general, online-based insurers are highly recommended for small businesses as they’re the best bet to purchase affordable, high-quality insurance.

Let's Find the Coverage You Need

The best insurers design exactly the coverage you need at the most affordable price.

Cost of General Liability Insurance

On average, online course businesses in America spend between $350 - $900 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for an online courses 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 an Online Courses Business

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Example 1: A competitor sues your business, claiming you libeled her company in your last marketing campaign. While you disagree with the accusation, you realize you need a lawyer to protect your interests. General liability insurance would pay for your legal defense and any required settlement.

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Example 2: While visiting your place of business, a potential investor slips on wet flooring as he enters the restroom, breaks his tailbone in the fall, and demands your company pay for his medical treatment. General liability insurance would cover his medical expenses.

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Example 3: During a meeting at a potential client’s office, an employee accidentally spills coffee on some expensive recording equipment and the business owner demands you pay for a replacement. General liability insurance would pay to replace the client’s damaged property.

Other Types of Coverage Online Courses 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:

Professional Liability Insurance

While you strive to provide students with high-quality educational opportunities, there’s always a chance someone might decide you made a mistake that harmed them. If a student sues your business for negligence, professional liability insurance would cover your legal fees and any required settlement.

Product Liability Insurance

While you work hard to offer online courses that educate students, there’s always a chance someone might decide one of your courses caused them harm. In the event of a lawsuit, product liability insurance would cover your legal fees and any required settlement.

Workers’ Compensation Insurance

If you have any employees, most states will require you to carry workers’ compensation insurance for your part-time and full-time workers. 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 online courses 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.

Online Courses 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. Even if your activities seem low-risk, online courses businesses are going to need business insurance before taking on customers.

You may have a legal obligation to buy specific policies (e.g., workers’ compensation and commercial auto insurance). Even if you don’t, without insurance, your business would have no financial protection against losses.

Not necessarily. Certain exceptions may be written directly into your online courses 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.