Every youtube business needs insurance. Knowing which type of insurance you need and the best place to get it is the next step.
This article will cover the main types of business insurance and help you find the best youtube business insurance.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Youtube Business
The most common and comprehensive type of youtube business insurance is general liability insurance. We recommend general liability insurance as your first line of defense against a variety of the most general and commonly occurring claims.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
While a youtube business isn’t legally required to carry general liability insurance, operating without it is extremely risky. If your youtube business is sued, you could face fees totaling hundreds of thousands of dollars (or more).
Cost of General Liability Insurance
On average, YouTubers in America spend between $350 - $900 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a youtube business to other professional industries using the graph below:
Several factors will determine the price of your policy. These include your:
- 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.
Common Situations That General Liability Insurance May Cover for a Youtube Business
Example 1: Your video content is similar to that of another content creator, and they decide to sue you for copyright infringement and lost viewership. General liability insurance would likely cover the costs if you choose to fight the claim in court.
Example 2: One of your viewers feels slandered by your content, and they file a claim against you for personal damages. General liability insurance is likely to pay for the legal costs to either settle or fight the claim.
Example 3: You have a guest host come to your recording area for a special session. When they leave, they trip over a cord that was left in the walkway. General liability insurance would likely cover the costs of any medical expenses that result from the fall.
Check out our review of the Best Small Business Insurance Companies.
Other Types of Coverage Youtube 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 other types of insurance all YouTubers should obtain:
Commercial Property Insurance
If you own a recording studio for your YouTube business, you’ll need commercial property insurance to cover any damages that occur from natural disasters, vandalism, or fires. This insurance covers your commercial equipment (e.g., cameras, lighting), as well as the physical structure of the property.
Professional Liability Insurance
If you give professional advice on YouTube, you’ll need professional liability insurance in case you make an error or omit important information that affects your viewers in a negative way. This insurance is designed to cover any formal claims against you if someone believes they suffered a loss due to your content.
Home-based insurance is available to cover your commercial equipment and space if you operate your business from your home. A typical renters or home insurance policy is unlikely to cover commercial expenses you may incur in the course of home-based business operations.
In addition to the policies outlined above, there are a few other types of coverage your YouTuber business may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.
Commercial Umbrella Liability Insurance
This insurance is available to supplement a general liability policy once it reaches its limits. A general liability policy has financial limits placed in terms of how much a business owner can receive (e.g., $50,000 for legal expenses). Umbrella insurance will continue to pay above and beyond in case a serious lawsuit is filed against you.
Workers’ Compensation Insurance
Most YouTube businesses start as one-man shows, but you’ll need workers’ compensation insurance if and when you officially hire a part-time or full-time employee. This insurance covers all employees from accidents or injuries while on the clock. You will not need workers compensation for contracted employees.
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 youtube 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.
Business Insurance Is the Best Way to Protect Your Business
If you're starting a new business, then you need business insurance. It's as simple as that. The protection offered by an LLC will protect your personal assets, but your business's assets are still open to liability in the case of a lawsuit or other loss.
Be sure that everything you've built is safe by getting business insurance.
Youtube Business Insurance FAQ
Can I buy business insurance online for my youtube business?
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.
What is included in a business owner’s policy?
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.
What is the difference between business insurance and general liability insurance?
"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.
Do I need insurance before I start a youtube business?
You should invest in business insurance coverage for your business before your first interaction with a customer. Although the cost of insurance may seem high for a brand new business, it’s best to be proactive when it comes to protecting your assets. After all, you can’t buy insurance to cover a loss that has already occurred.
Will insurance protect my youtube business from everything?
Not necessarily. Certain exceptions may be written directly into your youtube business insurance policy, and some perils may be entirely uninsurable.
Is general liability the same as business owners?
A general liability insurance policy covers only liability losses. A business owner's policy covers both liability and property losses.
How do I choose the best general liability insurance?
The best general liability coverage for your business really depends on the amount of coverage you’re comfortable with and how often you expect to file a claim. A relatively safe business with a very low risk of accident or legal liability could opt for lower premiums with higher deductibles.
However, if you are in an accident or injury-prone industry or are making advertising claims about the effectiveness of your service or product, you may wish to consider more extensive coverage. We recommend using a digital insurance provider like Next Insurance.
Do I need business insurance if I already have an LLC?
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.