[Donald]

Hopefully someone can help me on this one. I'm a single owner LLC. I run a website that promotes merchants products and services through the use of banners and text ads. I assume I need liability coverage of some sort. Does anyone have any specific experience purchasing liability coverage? Thank you.

[chetf]

What are you looking to protect yourself from? No one will insure you from the stupidity you can do on your own and past that, there is not much you need to be insured against. ie - you have no store where someone is going to slip and fall.

Liability insurance is normally for property or physical damages, in affiliate marketing you can't just do something wrong and then hide behind your "insurance".

Chet

[Donald]

I was thinking along the lines of product liability in the event my site was included in the chain of distribution.I know it's remote. just trying to cover all bases. Thank you for your response. Donald

[Donuts]

If you go to rent office space, even as a sole proprietor, the rental agreements most often include the requirement to hold liability insurance. There are many reasons why the facilities you rent / lease require this and they have little if nothing to do with the products your involved in selling. So Chetf, easy there boy, your dander's misplaced, in my opinion.

[Boomers Supply]

I don't carry any additional liability insurance for the office/business here in our residence. That's why I have always arranged client meetings at a convenient meeting location, Starbucks down the street.

[simcat]

I don't know if there's a single instance of an affiliate being sued for product liability issues*. Seems like most of the time when affs are sued, it's for things like spamming, domain squatting, etc.

* although if I was promoting some the 'wonder drug' type products (with their outlandish claims) available on the net, I might be a bit worried... :)

[Donald]

Thank you everyone for your quick responses. Donald

[chetf]

If you go to rent office space, even as a sole proprietor, the rental agreements most often include the requirement to hold liability insurance. There are many reasons why the facilities you rent / lease require this and they have little if nothing to do with the products your involved in selling. So Chetf, easy there boy, your dander's misplaced, in my opinion.

My point was and still is, you can't buy insurance to protect yourself from your own stupidity and since most affiliates don't have a physical presence, that stupidity doesn't include things like not shoveling your sidewalk, but being misleading, promoting using harmful method etc. In those cases, since he is the sole proprietor, most insurance companies won't cover him for things like that, nor would they actually pay is he was sued.

I was not calling anyone stupid, but what people tend to want to insure is their stupidity (mine included) and that is the one thing that is not insurable.

Chet

[Donald]

Chetf, No offense taken. I'm fairly new at this and just did not want to overlook something obvious. The one thing i'll say is that people buy error and omissions insurance every day. I guess you could say they were insuring stupidity. Thanks for taking the time to comment. Donald

[Jim Guinn]

I am an LLC and sell my own products (food), however, since everything is based at my house, my LLC is considered a home business. I was able to get biz insurance through my house insurance carrier. For $404 a year I am covered for liability (1 million) which includes general, product and contractual liability. It also includes identity fraud coverage, loss of income if I am sick or injured, non-owned or hired vehicles if I need to use them, personal and advertising injury, spoilage, and recovery of valuable papers in case they are lost or destroyed.

Not sure what you might be able to get through your homeowners as an affiliate, but you might want to speak with your broker or house insurance representative if you operate out of your home.

Jim

[Donald]

Jim, Thanks so much for the complete and informative answer. I was wondering if that was possible. I'll give my agent a call today. Thanks again. Don

[Bill]

Although I do not sell "my own" products as Jim Guinn mentions in Post #10, I have a business policy with coverages very similar to his. I have had it for six years now and pay a "minimum" premium of $500.

I have always been cognizant (and afraid of) of the possibility of the deep pockets/extended chain of liability lawsuit that seems far too prevalent in today's litigious society. I may not be held liable for someone else's actions, but the cost to make that claim in court (defend myself) could be quite high.

[Donald]

Beachy, Those are my concerns also. Since I'm not a wealthy man, the thought of hiring a lawyer for $250 an hour to defend me doesn't sound too pleasing. I think I'd sleep better with some insurance. Thanks, Donald

[dustin999]

My point was and still is, you can't buy insurance to protect yourself from your own stupidity and since most affiliates don't have a physical presence, that stupidity doesn't include things like not shoveling your sidewalk, but being misleading, promoting using harmful method etc.

There's more reasons to buy insurance than just protection against stupidity. These days people can sue for anything, and as Donald said, if you're in the supply chain of a purchase in any way, and the wrong guy comes through, look out!

[Jim Guinn]

Yes, to the last 3 posts! I have a friend who sold a candle to a lady. The lady claims the candle "exploded" burning her arm bad enough for medical attention. Now, the lady is suing my friend, the company she is affiliated with and the manufacturer. While I highly doubt my friend will have to bear any of the liability, she is still incurring legal fees just from attorney consultations and letters.

Jim

[dustin999]

Another example of why liability insurance isn't a bad idea, no matter how trivial of an impact your business may "seem" to have:

http://www.thesmokinggun.com/archive/years/2008/0613081toilet1.html

Absolutely amazing what people can sue for these days...