Private Investigator Insurance: Liability, Costs, Quotes From $9/month

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The private investigation industry carries with it an ever-increasing risk of litigation, similar to the law enforcement and security industry. This is particularly true today with the increased focus on civil liberties, privacy, and profiling. Given this tense and turbulent ecosystem, private investigator insurance is one of the few protections you can still count on.

What if you neglect to provide crucial details to a corporate client, and this mistake results in a harmful business decision? Finally, what if you end up breaking up a fight at a gathering you are working at, and one of the parties gets hurt?

These situations could result in significant financial strain, take a toll on your reputation, and ultimately lead to closure in business. That's why you want to stay proactive by investing in private detective insurance.

Private Investigator Liability Insurance 

Right out of the gate, it is important to note that private investigators aren't required to carry liability insurance. This means that operating without one holds an even higher risk. If your business were to be sued, you could face legal fees totaling hundreds of thousands or more. 

As such, you want to start by investing in comprehensive general liability insurance. Let's examine some real-life situations where private investigator liability insurance might come in handy. 

Suppose a client takes a meeting at your office but slips and falls on a pool in your entryway and breaks her wrist. With the general liability policy, the cost of treating her injuries will be sufficiently covered. Further, suppose you accidentally pour coffee on pictures presented during the initial review with a client suspecting their spouse of cheating. Finally, what if a competing private detective accuses you of speaking badly about him or their business? 

In all these situations, your general liability policy will be able to cover all the arising costs, thus saving you from the financial headache of paying out-of-pocket. General liability insurance covers: 

• Bodily injury 

• Property damage 

• Medical payments 

• Legal defense and judgment 

• Personal and advertising injury 

To get a discount, consider purchasing a business owner's policy (BOP) rather than a standalone general liability policy. The BOP acts as a comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance. 

Professional Liability Insurance for Private Investigators 

While general liability insurance is the most important type of insurance you ought to get for your private investigator business, there are several other forms of coverage that you ought to be aware of. The first is professional liability insurance for private investigators. 

By virtue of what private investigations entail, you are likely going to be involved in a great deal of research or developing data that are to be used by others in making significant decisions. 

Suppose you do an inadequate job of researching the given situation or you provide information that results in a poor decision by a client. Moreover, what if you neglect to provide critical information that results in a client's choice of a contractor who doesn't deliver quality work? 

Professional liability insurance is designed to shield you against liability related to your work as a private investigator. It covers all negligence claims due to mistakes or failure to perform. If you were to be sued for any of these, the policy will cover all your legal costs and the cost of a settlement.

Other than general and professional liability insurance, there are additional policies that you must consider.  

Commercial Auto Insurance for Private Investigators

The first is commercial auto insurance which covers any automobile that is primarily used for business. You ought to ensure that your commercial auto insurance meets your state's legal requirements. Commercial auto insurance does the following:

• Cover the medical treatment of persons you inflicted with injuries or property damage in a vehicular accident

• Account for vehicle parts repair or replacement if your auto gets damaged due to fire, theft, collisions, and other covered perils

• Cover the medical treatment of the driver and passengers when vehicular accidents happen 

• Reimburse vehicle rental expenses and public transportation costs 

Umbrella Liability Insurance for Private Investigators 

Additionally, consider getting commercial umbrella insurance. This policy picks up where general liability insurance and other liability policies leave off. 

Consider this. Suppose you were to lose a major lawsuit filed against your private investigator business, and as a result, you are mandated to pay damages that exceed your general liability limits. Commercial umbrella insurance will meet the remaining costs you would otherwise need to pay yourself.

Cyber Liability Insurance for Private Investigators  

Further, as a private investigator, you will likely have access to confidential information about your client. Suppose a hacker gains access to the case you are investigating. In this case, you would benefit from having cyber liability insurance coverage. This will cover the costs of legal expenses and for recovering the classified information. This will also pay public relations expenses and lost income as a result of the breach. 

Assault And Battery Insurance for Private Investigator 

Finally, as a private investigator, you want to protect your business and yourself from assault and battery charges with assault and battery coverage. While quite uncommon, you must consider including this policy in your coverage. Often, this policy will only be made available by companies specializing in private investigator liability insurance.

Workers Compensation Insurance for Private Investigators

Your work is dangerous, and it’s good to get workers' compensation insurance. This will cover costs if you or your employees experience an accident while working outside or in the office. By having this insurance, you can cover the following:

• Medical treatment

• Hospitalization

• Medication

• Rehabilitation and retraining

• Lost wages

• Funeral expenses and allowance to dependents in case of death

Home Based Business Insurance for Private Investigator 

What if your business runs out of your home? Unfortunately, your homeowner's policy cannot cover accidents that occur within your home resulting from your business activities. As such, you want to invest in home-based business insurance, which will cover accidents related to your work as a private investigator that happen within your home. 

Private Investigator Insurance Costs

Expect to pay $44 per month or $528 per year for a $1 million general liability insurance policy. Note that this is just an estimate. 

The private investigator insurance cost you incur will depend on varying factors about your business. Specifically, your quotes will be calculated based on the information you provide, including the following: 

• Years of experience 

• Number of employees 

• Claims history 

• Annual gross revenue

For a better idea of private investigator insurance costs, take a look at this table showing the rates of the recommended companies: