E&O Insurance for the Home Business Owner

Working over the Internet as a self-employed business owner is very satisfying. This is especially true during bouts of bad weather when your neighbors are preparing for a horrible commute.

Although an Internet business protects you from awful commutes, it doesn't protect you from getting sued by an irate client. If you are performing services for businesses, there is a possibility that you may cause them financial loss through a mistake on your part. Two types of services that can place you at risk are discussed below.

SEO Consultant

An SEO, or search engine optimization, consultant charges clients a fee for improving the search engine rankings of their business' site. This results in more website traffic, which usually means more sales through the client's website. Many clients in the more lucrative niches are willing to pay well for improved rankings because each sale for them can mean thousands of dollars. When things are working well, both the client and the SEO consultant are happy.

However, if the consultant's work causes the client's site to get less traffic or even banned by the search engines, then the client's business has suffered a great financial loss. The SEO consultant is then highly vulnerable to a lawsuit. In the SEO business, methods that work this month may get a site penalized or banned the next month.

Website Hosting

Providing website hosting can be a very profitable business. This is a recurring income model where each client pays you a monthly fee for hosting their website. With enough clients, the monthly income from these fees can really add up.

However, it puts you in a position of responsibility for the websites of all of your clients. Downtime for a business site means lost money. If a server goes down or if someone hacks into one of your servers and damages its files, then the websites on the server can go offline. Business sites on the server will be losing sales and income, and you are responsible for this. You are in a vulnerable position at this point.

Beyond these two examples, there are many other types of online services that can put you at risk.

Don't rely on luck. Consider getting errors and omissions (E&O) insurance. E&O insurance provides protection for companies or individuals that offer services. If a client brings you to court because your service did not produce the promised result or caused some form of damage, the cost of litigation and settlements up to a specified amount can be covered. Many things can go wrong in the online world. It doesn't matter if it was a mistake, an omission or was something beyond your control. Either way, E&O insurance can protect your home business from damages.

Get the coverage you need. Call Auto Insurance Discounters at (816) 252-2255 for more information on Kansas City business insurance.

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