Virtual Tour Business Insurance
Getting insurance for your virtual tour business is essential.
This is because virtual tour businesses need to be protected against things like contract violations and employment disputes.
You will also want to purchase the right business insurance coverage in order to protect your business’s assets (e.g., professional camera, software, etc.).
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 Virtual Tour Business
General liability insurance is — generally speaking — one of the most important insurance policies for virtual tour businesses.
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, it is important to remember that not all virtual tour businesses will be adequately covered with just a general liability policy. This means that you may benefit from purchasing additional coverage depending on your unique needs and risks.
Other coverage options you may want to consider include:
- Commercial property insurance
- Workers’ compensation insurance
- Business income insurance
You will also need to find the right type of insurer for your business. As of 2024, there are two options available:
- Traditional brick-and-mortar insurers
- Online insurers
We recommend going with an online insurer (e.g., Tivly, Next Insurance, etc.) as a small business owner due to the fact that personalized coverage can be acquired at a much more affordable rate due to the lower overhead involved.
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Cost of General Liability Insurance
On average, virtual tour businesses in America spend between $500 - $1,100 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a virtual tour 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 Virtual Tour Business
Example 1: During an editing session, a client’s film is destroyed after a staff member permanently deletes the file. The client has a stringent deadline and sues for loss of income. General liability insurance would cover the costs associated with a lawsuit or formal compensation claim.
Example 2: The name of your virtual tour business is similar to that of another tour company in the area. The other company sues for trademark infringement and lost revenue due to consumer confusion. General liability insurance would cover the costs to fight the lawsuit or pay a settlement.
Of course, this is not an exhaustive list of perils a general liability insurance policy will cover, and some conditions may result in a particular peril not being covered. It's always best to talk to your agent in-depth about the specifics of your policy to avoid blind spots in coverage.
Other Types of Coverage Virtual Tour 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 your virtual tour office, this insurance covers the grounds, structure, and any equipment you own. Your editing equipment is a major investment for your company, and this insurance protects it in events such as natural disasters, theft, and fires.
Workers’ Compensation Insurance
Workers’ compensation insurance covers all employees in your organization, whether they work four hours or forty hours per week. It applies to staff who work in formal office space as well as employees who work from home. This insurance covers sudden accidents, such as a broken leg, or injuries that develop over time, such as chronic shoulder pain from hunching over an editing table.
Professional Liability Insurance
This insurance can help protect your company if your staff gives professional advice to clients. For example, a virtual tour business may inform owners to showcase their business in a certain light or they advise clients on how to disclose certain facts about an establishment. If the client feels they were misled or lost business due to these suggestions, professional liability is available to protect against a lawsuit.
Commercial Umbrella Liability Insurance
Umbrella insurance is only available in the event a general liability policy reaches its maximum payout for a claim. It’s a policy that can keep your business alive if you have to face a particularly difficult and costly liability lawsuit.
Data Breach Insurance
Because so much of a virtual tour business is online, this insurance is available in case your files are hacked or your client’s sensitive details are stolen. It can protect you from financial loss if your clients sue you for a breach of their data or if your editing files are ransomed.
Business Interruption Insurance
If your equipment is out of commission due to a covered event (e.g., natural disaster, fire, etc.), you’ll likely need to shut down until you can get everything repaired or replaced. If you need to close for an extended period of time, business interruption insurance provides an income based on past revenue.
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 virtual tour 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.
Virtual Tour 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 you do.
This is because you won’t be able to predict when you will need to rely on your coverage, and not having business insurance when you need it can end up costing you an excessive amount of money in the long term.
Not necessarily. Certain exceptions may be written directly into your virtual tour 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.