Insurance for an LLC Online
We are setting up a LLC to do business online. Our plan is to set up a website on which we will sell articles, information and previews of upcoming sporting events, written from a sports bettor's perspective. The articles written will be for entertainment purposes only and absolutely no gambling of any kind will be available through the website. This venture is fully funded by venture capitalists and requires no business loans of any kind.
Our question to you – do we need liability insurance? And if so what kind? I assume the protection would be from lawsuits generated as a result of customers' losses incurred from misusing our information (such as legal gambling losses) or possibly just the inaccuracy of our editorial articles?
While we can't recommend exactly what insurance you will need, most businesses in general should carry some liability insurance. At issue is that you could be sued (whether frivolous or not) and you need to be able to protect your business from such suits. Liability insurance helps you do that.
Business liability insurance is different than personal liability insurance. The type of business that you are setting up determines the risk. You may want to consult with a lawyer well versed with Internet business or even an insurance broker who is internet-business savvy to understand the risks that might be perceived. Then you can put together information that better represents your business to an insurer.
An insurance broker might be able to find an insurer that you haven't tried.
One other idea is to find out if there is business insurance offered through your business bank. You might be able to get in front of someone to present a business model, which would allow that person to lobby for insurance on your behalf. If you have a bank that you have business accounts with or a line of credit, I would start there.
Are your disclaimers (regarding the use of information) carried on every page of your site? This may help to reduce perceived risk to an insurer.