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  1. #1
    Newbie
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    December 22nd, 2010
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    Umbrella and Liability Policies - which carrier?
    Hi everyone...

    Toy affiliate here, duh.

    That said, because some of our affiliate tools are open ended, the first insurance agent we spoke with had a VERY difficult time nailing our business down.

    I'm just not 100% sure she understood.

    So, I figured I would ask the best audience this question.

    What business insurance carriers are affiliate friendly and understand the business? Or, at the very least, will insure it?

    I am under a LLC with real tax IDs and the whole nine yards so those items are not an issue that I need to attend to.

    ANY help or insight is greatly appreciated!

    And hi!


  2. #2
    Tax Paying Member
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    November 14th, 2005
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    Chapel Hill, NC
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    LLC is good
    Tax ID is good




    Why do you think that you need to be insured as an affiliate???
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
    Carolina China

  3. #3
    Beachy Bill's Avatar
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    November 20th, 2005
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    Quote Originally Posted by Witzer View Post
    LLC is good
    Tax ID is good

    Why do you think that you need to be insured as an affiliate???
    Defense in a lawsuit, even a frivolous one, can cost a bundle. And with no defense it could cost an even larger bundle. Many "shylock-style" attorneys can and may name anyone and everyone is a supply chain in a product liability suit.
    Bill / Marketing Blog @ 12PM - Current project: Resurrecting my "baby" at South Baltimore..
    Cute Personal Checks and Business Checks
    If you are too busy to laugh you are too busy.

  4. #4
    Newbie
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    December 22nd, 2010
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    uickly
    Quote Originally Posted by Bill View Post
    Defense in a lawsuit, even a frivolous one, can cost a bundle. And with no defense it could cost an even larger bundle. Many "shylock-style" attorneys can and may name anyone and everyone is a supply chain in a product liability suit.
    I'm actually surprised to find that more people do not either take this as seriously as you seem to or understand the inherent risks in affiliate marketing.

    Would it happen? Would someone remember that they purchased an XYZ through your (insert affiliate site here) ultimately going to the final destination and seller? Would someone point you out as an accomplice to the entire transaction? Again, probably not.

    Especially if you are dealing with a larger affiliate such as Amazon, Target, Walmart etc with much deeper pockets...

    But as you so aptly point out... All it takes is one sue-happy person (or lawyer) to name you in a suit to drain your earnings away. Quickly!

    With that, Bill, can you recommend an affiliate friendly company by chance?

    Thanks!

  5. #5
    OPM/Moderator Hectic GHC's Avatar
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    Quote Originally Posted by Bill View Post
    Defense in a lawsuit, even a frivolous one, can cost a bundle. And with no defense it could cost an even larger bundle. Many "shylock-style" attorneys can and may name anyone and everyone is a supply chain in a product liability suit.
    That's a happy thought to ponder going into the new year.

  6. #6
    Beachy Bill's Avatar
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    Quote Originally Posted by Greg Hoffman Consulting View Post
    That's a happy thought to ponder going into the new year.
    Unfortunately in our litigious* society it (that "unhappy" thought) is always a possibility; and I have too much to lose to not protect myself. While "somewhat" protected with a corporate veil, I am not so naive as to not understand that the veil can be pierced. The cost of "defense" can be a large factor of the $500 or so dollars a business liability policy costs for a minimum annual premium. We also have a Workmen's Compensation policy, required by the State of Delaware - because we elected to be a C-corp rather than an S-corp. That gives us more flexibility for growth and branching out - but also makes us, technically, employees.

    @ ToySeller - I had originally had coverage through Safeco but their business sector was bought out by Ohio Casualty a couple years back. One of their sub-companies does the underwriting. I'm not sure of the exact name, I trust our broker to find the right coverage and place it. We are small enough that "minimum" premiums came into play for the first several years. However, our latest "premium" audit (annual for Worker's Comp) has us at a rate $4.00 higher than we have ever paid. WooHoo!

    *We desperately need tort reform. But that will never happen - as long as more than 90% of our congress critters are lawyers. (It may be a mixup of numbers, but I recall reading somewhere that the US graduates more lawyers EVERY year than the country of Japan has in total.) Meanwhile I will do what is necessary to protect our own business and personal liability interests.
    Bill / Marketing Blog @ 12PM - Current project: Resurrecting my "baby" at South Baltimore..
    Cute Personal Checks and Business Checks
    If you are too busy to laugh you are too busy.

  7. #7
    Newbie
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    December 22nd, 2010
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    Quote Originally Posted by Bill View Post
    Unfortunately in our litigious* society it (that "unhappy" thought) is always a possibility; and I have too much to lose to not protect myself. While "somewhat" protected with a corporate veil, I am not so naive as to not understand that the veil can be pierced. The cost of "defense" can be a large factor of the $500 or so dollars a business liability policy costs for a minimum annual premium. We also have a Workmen's Compensation policy, required by the State of Delaware - because we elected to be a C-corp rather than an S-corp. That gives us more flexibility for growth and branching out - but also makes us, technically, employees.

    @ ToySeller - I had originally had coverage through Safeco but their business sector was bought out by Ohio Casualty a couple years back. One of their sub-companies does the underwriting. I'm not sure of the exact name, I trust our broker to find the right coverage and place it. We are small enough that "minimum" premiums came into play for the first several years. However, our latest "premium" audit (annual for Worker's Comp) has us at a rate $4.00 higher than we have ever paid. WooHoo!

    *We desperately need tort reform. But that will never happen - as long as more than 90% of our congress critters are lawyers. (It may be a mixup of numbers, but I recall reading somewhere that the US graduates more lawyers EVERY year than the country of Japan has in total.) Meanwhile I will do what is necessary to protect our own business and personal liability interests.
    Bill... please accept my apologies for the late thank you, but, thank you!

    As you could guess, much like others, the holiday season is the busy time for us.

    I'm going to reach out to Ohio Casualty today.

    Thanks again.

  8. #8
    OPM and Moderator Chuck Hamrick's Avatar
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    April 5th, 2005
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    My wife is a State Farm rep and here's her comment:
    Best defense is to define your business.
    First and foremost - do you consider the biggest percentage of your time as internet marketing? Do you build or maintain websites?
    I know tht State Farm Insurance has specialty products that cover the above.
    They need honest answers though. The last I insured assured me that they just maintained a website, so were web based consultant, but when they completed the addendum, listed the majority of their time spent marketing (expensive insurance wise!).
    As a State Far, Agent, I have found from prospect consensus - Travelers insurance has the best product to insure you for professional liability - Assuming you have no foot traffic - all internet based.
    Last edited by Chuck Hamrick; January 8th, 2011 at 02:55 PM.

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