Mystery Shopper Business Insurance

Getting insurance for your mystery shopper business is essential.

This is because you will need to protect your business’s assets against a variety of foreseeable risks, such as those that relate to mystery shopper negligence, accidental injuries, and contract law violations.

You can also use business insurance in order to cover the cost of repairing and/or replacing your business’s equipment (e.g., office furniture, company vehicles, etc.) in the event of damage.

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 Mystery Shopper Business

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

Some of the risks general liability insurance covers are:

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

Even so, it is important to note that your mystery shopper business will likely benefit from purchasing additional coverage.

This is because a general liability policy will not be able to protect it holistically from all potential risks.

Additional insurance policies you may want to consider include:

Workers’ compensation insurance — Will cover your business in the event that an employment law dispute arises (e.g., wrongful terminations, mystery shopper bodily injuries, etc.).
Errors and omissions insurance — Will protect you from negligent acts or omissions committed by an employed mystery shopper.
Business interruption insurance — Will cover part of your lost income in the event that you are required to temporarily stop operations.

When you are attempting to purchase your business coverage, you will need to find the right type of insurer for your small business.

As of 2024, there are two different types available:

Traditional brick-and-mortar insurers (e.g., Nationwide, CNA, etc.).
Online insurers (e.g., Tivly, Next Insurance, etc.).

We recommend going for an online insurer (i.e., an insurer that uses AI instead of a live agent in order to offer personalized coverage) as a small business owner; this is because these are usually significantly more affordable.

Let's Find the Coverage You Need

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

Get a Quote

Cost of General Liability Insurance

On average, mystery shopper businesses in America spend between $400 - $700 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a mystery shopper 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.

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 Mystery Shopper Business

Example 1: During a visit to a client’s store, you accidentally knock a shelf over and it falls on top of someone. The injured person learns you’re a mystery shopper and decides to sue you. General liability insurance would pay for your legal defense and any required settlement.

Example 2: You write a blog about mystery shopping to give guidance to others interested in the business. In a recent post, you criticize several jobs offered by local companies. One of the businesses you criticize sues you for libel. While you don’t believe the lawsuit has merit, you know you need an attorney right away. General liability insurance would pay for your legal defense.

Example 3: The owner of another mystery shopper business sues you for damages, claiming you stole her company logo. While you don’t see much similarity between the two logos, you know you need to hire a lawyer. General liability insurance would cover your legal defense costs.

Other Types of Coverage Mystery Shopper 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 professional insights that help your clients improve their businesses, there’s always a chance someone might decide your advice harmed them. If a client sues your business for negligence, professional liability insurance would cover your legal fees and any required settlement.

Commercial Auto Insurance

Any vehicle you use primarily for business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured but also sufficient protection for any business property you carry in your vehicle.

Home-Based Business Insurance

If you run your business from your home, you may need this insurance to safeguard the equipment and space in your home devoted to your business. A typical homeowners insurance policy may not cover business-related items or client injuries on your property if you don’t disclose you use your home for business purposes. In the event of a lawsuit, this coverage would pay for your legal fees and other associated costs.

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 mystery shopper 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.

Mystery Shopper 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.

Generally speaking, yes. This is because you will want to ensure that your business is protected before any liability arises.

For a mystery shopper business, we recommend purchasing the following business insurance policies:

General liability
Workers’ compensation
Business interruption
Errors and omissions

Not necessarily. Certain exceptions may be written directly into your mystery shopper 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.