Do Domainers Purchase Business Insurance?

[OddTop]

My domain business is really picking up and I was curious how many domainers purchase some kind of general liability insurance?

Since I'm a sole proprioter I am worried about being sued and losing my home/everything I have. Who knows what people could sue for? I heard someone sued someone on ebay for giving a "nuetral" feedback (according to my local news).

My home insurance doesn't cover the business (and no optional endorsements).

Do all domainers risk being sued, or are there some that buy insurance? Would I have to buy a general liability policy, or is there a specialized policy somewhere?

Thanks!
BD

 

[jehnidiah]

Have you considered forming an LLC to limit your liability? It might be cheaper on you to go that route, and that way you wouldn't have to worry about your home being taken.

To answer your question, though: I haven't purchased business insurance and don't know of anyone else in the industry who has, though I'm sure there is someone out there who has some advise for you.

 

[cache]

right, LLC can be considered as a low cost insurance.

 

[Spade]

I created my own LLC for that and tax purposes.

 

[htmlindex]

Nope, don't have or need any business insurance.

 

[Slick Domains]

I've restructuring under a business name, then creating an LLC. This should protect your personal assets.

 

[sf2010]

Having an LLC alone will not totally negate your business liability. A quick search on the net will give you the following (confirmed by my tax attorney):

* personally and directly injures someone
* personally guarantees a bank loan or a business debt on which the LLC defaults
* intentionally does something fraudulent, illegal, or reckless that causes harm to the company or to someone else, or
* treats the LLC as an extension of his or her personal affairs, rather than as a separate legal entity.

Summary? Dot your i's and cross your t's. Documentation is key when forming an LLC.

Business liability insurance can be had for around $500 per year but unless you are providing some type of service/products to companies and individuals, don't waste your money on it.

 

[Slick Domains]

Yes. If you go the LLC route, you have to be VERY careful to completely separate business from personal accounts. Different checking, savings, credit cards, Paypal accounts, etc. And you have to run it like a business.

My wife is an attorney so she helps keep me in line. :D

 

[shockie]

but unless you are providing some type of service/products to companies and individuals, don't waste your money on it.

how can you have a business that doesn't provide products or services to anyone?