Traditionally, many businesses have operated on a standard fee-per-unit-sold model. But today, some of the biggest companies in the world offer subscription-based services. And if Netflix, Spotify, Disney, and Amazon Prime have anything to say about, subscription companies are here to stay.
Whether you’re new to your industry or you’ve been in business for a while, it’s important to think seriously about how you can protect your business if the unthinkable occurs.
To that end, you may want to take out a solid subscription company insurance policy.
The 3 Types of Insurance That Subscription Companies Need to Consider
1. Commercial General Liability Insurance
Most people know Commercial general liability insurance for its ability to provide coverage for product damage and/or bodily injuries suffered by third parties on your property. If a member of the press or a joint venture partner were to trip and fall while visiting your facility, for example, this is the policy that you would likely rely on to seek compensation.
But for subscription companies, another key benefit of commercial general liability insurance is that it can also include products liability coverage. If a product you ship out ever turns out to have undisclosed allergens or a defect in the design that makes it unsafe, you can rely on your commercial general liability insurance policy to help you protect your company’s finances.
2. Commercial Property Insurance
Whether you ship products or you deliver a service to your customers, chances are that you have at least a few pieces of equipment and some inventory that you depend on to fulfill orders and keep your business operational.
In a subscription-based revenue model, you get the benefit of a steady income. But by necessity, this makes it important to control your costs and expenses. When you’re dealing with the aftermath of a fire or the water damage left behind by a burst pipe, having to replace your business equipment can be difficult to cope with financially. A commercial property insurance policy can compensate you if an insured peril ever damages your company property.
3. Umbrella Liability Insurance
The success of a subscription company depends on building up a huge list of customers. While this volume approach can be great from a marketing standpoint, a bad shipment or a batch of products with manufacturing defects can be particularly devastating if you need more insurance than your commercial general liability allows.
Umbrella liability insurance serves as a nice top-up if you ever need extra liability coverage.
Protect Your Business With Subscription Company Insurance
Here at ALIGNED, our brokers will look closely at details like your industry, your company assets, your location, and more to determine what coverage options you need. Contact us for your FREE subscription company insurance quote today!
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