Insurance required for web service

[tbon]

Hi All, we have just registered a limited company to launch a new web service for professional musicians to list them in an online directory where they can find work more easily. I'm wondering if you know what kind of insurance we must have or recommended to have for this business? Perhaps anyone has experience with the practicalities, regarding what might go wrong, what we might be sued for, etc? We are not selling any tangible stuff, it's just an online service but we do store personal data of our members.

 

[Deleted member 352941]

There are a few different types of insurance that may be relevant for your business, including:

1. Professional Liability Insurance (also known as Errors and Omissions Insurance): This covers claims made against you for professional mistakes or failure to perform your services as promised.
2. Cyber Insurance: This protects your business against the financial losses resulting from a data breach or cyber attack, including the cost of notification, credit monitoring, and legal defense. Given that you're storing personal data of your members, this may be a relevant insurance to consider.
3. General Liability Insurance: This protects your business against third-party claims of bodily injury or property damage. For example, if someone is injured while visiting your office, or if you accidentally damage someone else's property.
4. Business Interruption Insurance: This covers loss of income if your business is unable to operate due to a covered loss, such as fire, theft, or natural disaster.

I recommend speaking with an insurance broker who specializes in your industry to determine the right insurance coverage for your business.

 

[Mark T Jones]

Hopefully @Frank the Insurance guy can give few pointers

 

[Frank the Insurance guy]

Hi @tbon,

The only Insurance cover you legally have to have in the UK is Employers Liability (Unless you are the sole director with no employees (regardless of whether they are on payroll or not).

All other insurances are optional, but may be a requirement of your business by others - eg. customers, suppliers etc.

Have a look at the insurance guide for the main types of insurance to consider: https://meadowbroking.co.uk/business-insurance/guide/

Of these, I would suggest the Cyber/Data protection insurance - this will protect you against claims relating to a hack of your website &/or data breaches.

It is not clear how you will be earning your income - will be it from the musicians wanting to list on the site, or customers paying to find musicians? - Either way, you may want to consider Professional Indemnity Insurance. This cover protects you if others suffer a financial loss as a result of the failure of your service/website.

Best advice - Speak to an Independent Insurance broker. They will want to know more details about your business and the processes and they will be able to talk you through the various options and provide quotations.

I will be happy to help - contact details below.

 

[fisicx]

@tbon, can’t help with the insurance question but I’m interested as to how your directory is any different to the multitude of directory and listing sites where I can already find someone to tinkle the ivories or whatever?

 

[tbon]

@Frank the Insurance guy Thanks, I will get in touch soon.

@fisicx Our site is for professional musicians to find other professional musicians for a gig rather than for the general public to find someone to play at their birthday party. We are not aware of anything of this kind.

 

[Gecko001]

@Frank the Insurance guy Thanks, I will get in touch soon.

@fisicx Our site is for professional musicians to find other professional musicians for a gig rather than for the general public to find someone to play at their birthday party. We are not aware of anything of this kind.

Here is what a quick Google brought up:

How to find musicians to jam with or join a band

Playing together is a great way to become a better musician. But where to find jam buddies and band members? Here's 18 ways to find musicians near you!

www.stringkick.com

No point in reinventing the wheel. I have a few musician friends and they are a sort of special bunch. They just will not let anybody play in their band.

PS. But if you can get going and do something different from all the others, I wish you all the best. Regarding insurance, please not that if this is a flop you could be liable for claims on for up to six years after the site closes unless you take measures to protect yourself.

 

[tbon]

No point in reinventing the wheel.

Well, there are all sorts of wheels out there. We believe ours will be useful but we migth be wrong. We'll give it a try...

I have a few musician friends and they are a sort of special bunch. They just will not let anybody play in their band.

Were you rejected?

 

[Gecko001]

Well, there are all sorts of wheels out there. We believe ours will be useful but we migth be wrong. We'll give it a try...

Were you rejected?

No I am not a musician. I just know a few. They seem to do things differently to the rest of us, bless them.

 

[Gecko001]

Just t follow on from the above. Professional musicians are probably the same as most professionals who have a particular talent in a niche business. They can become very protective of their professional activities. That can mean mostly dealing with word of mouth or other such traditional introductions.

 

[tbon]

That can mean mostly dealing with word of mouth or other such traditional introductions.

Yes, this is certainly true. But the power of word of mouth runs out and sometimes they struggle to fill a seat, especially if the gig is not somewhere in a major city.