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

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:

Best Private Investigator Insurance Companies 

These are the best private investigator insurance companies. Read to know their pros, cons, and rate for a $1 million general liability insurance. 

NEXT Private Investigator Insurance 

Pros

• Best overall

• Get an online proof of insurance and send as a text message, email, or social media post

• Fastest general liability insurance for private investigators

• Great customer service and reputation

• Issues an online proof of insurance instantly

• Outstanding value for money

• Bundle two or more insurance policies and get a 10% discount

Cons

• Couldn’t find any

Launched in 2015, NEXT is a go-to for smaller private investigation business owners looking for cheap insurance online. NEXT’s standard insurance package for private investigators includes the following: 

• General liability 

• Professional liability 

• Commercial auto 

• Commercial property 

With NEXT, you can purchase private investigator insurance for as low as $11 per month or $132 annually. This is underwritten by Tivly. 

Best for: Best overall; Fastest general liability insurance for private investigators

Average cost: $11 per month 

Our rating: 10/10

CoverWallet Private Investigator Insurance

Pros

• Compare private investigator insurance quotes online

• No hidden charges

• Cancel a policy anytime

Cons

• Not an insurance company but an insurance broker 

CoverWallet is an insurance broker that sells private investigator insurance products from different insurance companies, such as Chubb, CNA, and Liberty Mutual. Policies you can get from this company are general liability, cyber liability, workers’ compensation, professional liability insurance, and more. 

This company’s general liability insurance for private investigators has a $1 million per occurrence limit with a $2 million aggregate. You also enjoy a $100,000 rented premises liability coverage, $2 million products and completed operations coverage, and $5,000 medical payments coverage. 

Before getting covered, use CoverWallet’s online quotes comparison platform to see the best offers. You can buy a quote online or with the help of a representative. Once you’re insured, CoverWallet creates an account for you. Use this to pay premiums online, manage policies, or download certificates of insurance. 

Best for: Private investigator insurance online quotes comparison

Average cost: $18.41 per month 

Our rating: 10/10

Tivly Private Investigator Insurance

Pros

• Compare private investigator insurance quotes over the phone

• Responsive customer service

• A partner of many reputable insurance companies 

Cons

• You need to call to get a quote 

Tivly (formerly CommercialInsurance.NET) covers a wide range of businesses. Therefore, it might provide coverage even though it doesn’t have a specialized packaged insurance program for private investigators. Call Tivly now to talk with a representative and compare private investigator insurance quotes over the phone. 

Best for: Comparing private investigator insurance quotes over the phone

Average cost: $21 per month 

Our rating: 10/10

XINSURANCE Private Investigator Insurance 

Pros

• Available in all 50 states 

• All-in-one approach with private investigator insurance that covers all exposure under one policy 

• You can purchase customizable liability insurance coverage 

Cons 

• Bail coverage is only offered as reimbursement and attracts an extra charge 

• No modifications to firearm allowed 

XINSURANCE, powered by Evolution Insurance Brokers, offers a number of specialty insurance for individuals and businesses alike. 

Other than offering private investigators customizable general liability insurance, XINSURANCE also offers specialized policies for private investigators. These coverages can have up to $10 million or $20 million:

• Invasion of privacy insurance 

• Assault and battery insurance

• Errors and omissions insurance

• Firearms liability and concealed weapon insurance 

• Commercial auto insurance 

Best for: Customizable private investigator insurance 

Average cost: $30 per month 

Our rating: 7/10

El Dorado Private Investigator Insurance 

Pros

• El Dorado has firsthand knowledge of the insurance needs of professional private investigators 

• Full protection insurance packages ensure you can carry out an investigation without fear of litigation 

• A special team of private investigators is onboard, which comes in handy when developing the tailored cover for your private investigator business 

• 50 years of experience working with private investigators 

Cons 

• El Dorado lacks an extensive agent pool which can make it difficult to gain information on the policy 

Since 1968, El Dorado Insurance Agency, Inc. has been offering insurance to hard-to-insure businesses, including private investigator insurance. The insurer has in-depth knowledge of their unique insurance needs as it works exclusively with professionals across the security industry. 

This insurer has long-term relationships with some of the nation’s most trusted insurance carriers, including First Mercury Insurance and CoverX Specialty. Additionally, El Dorado has a strong relationship with Texas Mutual Insurance company which means that you get a leading workers’ compensation policy in the market. 

The private investigator insurance offering from El Dorado includes the following: 

• Employee Practices Liability Insurance, EPLI, that protects your employees in the event of cases of wrongful termination, sexual harassment, discrimination, or retaliation

• Umbrella coverage that goes beyond limits that you’d typically find in your average PI insurance. The umbrella policy gives the policyholder additional limits in the event that a claim amount exceeds the total limits of the standard coverage 

The private investigator insurance from El Dorado Insurance Agency starts at $41 per month or $492 annually. As a prospective policyholder, you are advised to visit the company’s website to utilize the quoting tool and obtain a quote within minutes. 

Best for: Workers’ compensation policy for private investigators 

Average cost: $41 per month

Our rating: 8/10