December 29, 2020
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After their doors shut, many small businesses in the US had to figure out ways to get online and stay competitive during the pandemic.
In the rush to embrace technology and move online, it’s likely that insurance was low on the list of priorities. The idea of adding another expense wasn’t ideal either.
But the reality is online businesses face unique threats that could lead to an even greater loss of income than what this year has delivered so far.
If you own an online business, purchasing an insurance policy to provide protection against common risks makes good business sense for now and the future.
What Threats Do Internet Businesses Face?
Online businesses face risk of loss related to a variety of factors, including:
- Internet connection loss because of weather, fire, or vandalism
- Hackers and cyber theft
- Computer viruses
- Privacy of customer information
- Copyright violations
- Breach of contract allegations
- Product liability
- Suspension from an e-commerce platform
What Types of Insurance Does an Online Business Need?
The types of insurance your online business needs can depend on the size of your business and whether you have employees. Recommended coverage for an internet business may include:
- Cyber liability insurance: This coverage can protect your business in case of a data breach, whether the information is stolen or leaked. Many cyber liability insurance policies will cover business interruption, computer restoration, ransomware expenses, public relations, and legal fees related to a data breach.
- Commercial general liability insurance: This insurance helps protect your business from third-party liability for property damage or personal injury on your business premises, and from liability for injury caused by any product your business sells. Amazon and other e-commerce platforms require businesses that sell through them to carry commercial general liability coverage.
- Seller suspension insurance: If your online business operates by selling through an e-platform such as Amazon, you are probably aware that your account could be suspended at any time, at the discretion of the platform. Even if you appeal the suspension and win, your business could come to a halt for weeks or even months, causing a significant loss of income. Seller suspension insurance could help cover your losses and expenses involved in getting your account reinstated.
- Chargeback insurance: This coverage is designed specifically for retailers who are paid primarily with credit or debit cards. It protects your business from loss in case of charges made with stolen cards or counterfeit card numbers.
- Workers’ compensation insurance: If you have employees, you need a workers’ compensation policy in case of a work-related accident or illness. Workers’ comp will cover an injured employee’s medical expenses and lost wages from time away from work. It also helps protect your business from potential injury lawsuits filed by employees.
- Employment practices liability insurance: We live in a litigious society. Employees file lawsuits against employers in high numbers in the USA, alleging discrimination, harassment, wrongful termination, and other employment practices claims. If your online business has employees, you should consider purchasing employment practices liability insurance to protect your enterprise against these claims.
Each online business is unique. Our team is happy to advise you on the types of business insurance to purchase based on the risks you are facing. We can also help you obtain the coverage your business needs at the best available rates.
Get the right coverage in 3 easy steps
Getting the right insurance coverage doesn’t have to be complicated or stressful. Our team is here to help you save time, save money, and get peace of mind.
Step 1 – Submit your information via the form below
Step 2 – We’ll do the research and send you a personalized quote
Step 3 – Sign the paperwork and pay your premium
We know how overwhelming picking the right insurance plan can be when you have so many things on your plate already.
As independent agents, we work with multiple companies to find you the best quotes on your coverage. Don’t waste another second searching for affordable insurance for your online business on your own.
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