Like other business owners, online sellers face challenges such as data breaches, inventory theft, loss of income if they are unable to start their business due to fire, or other reasons. E-commerce insurance is a type of small business insurance that covers a variety of issues faced by the industry.
Here are some types of e-commerce insurance to consider.
business interruption insurance
Business interruption insurance (also known as business income insurance) covers your e-commerce business if it is unable to operate due to a covered event, such as fire or storm damage. This coverage compensates your business for lost income and also pays for relocation costs if your e-commerce business needs to be temporarily relocated to a new location.
business property insurance
Business property insurance protects you if your business assets are stolen, damaged, or destroyed due to a covered issue such as fire. This includes assets such as your business premises, machinery, tools, inventory, computers, office equipment, and important documents.
Commercial real estate insurance is also known as commercial real estate insurance.
commercial auto insurance
If you use a vehicle such as a car, truck, or van for work, you likely need commercial auto insurance. For example, driving goods to the post office for delivery is considered business use. Your personal auto insurance policy won't cover accidents that occur while you're using your car for work.
Cyber liability insurance
Cyber liability insurance typically covers cyber threats and data breaches for businesses. Covers costs such as data recovery, identity recovery, and investigative services. This coverage is also known as “cyber risk insurance.” This is a good choice if your e-commerce business collects sensitive information such as social security numbers, credit card numbers, bank account numbers, and driver's license information.
General liability insurance
General liability insurance covers injuries and property damage to others caused by accidents in your e-commerce business. It also covers lawsuits for reputational damage, copyright infringement, and advertising injury.
For example, if another company sues your business for defamation in an advertisement, the general liability portion of your business insurance policy will cover the legal costs.
professional liability insurance
Professional liability insurance covers claims for mistakes and mistakes made by an e-commerce business, even if the claim has no merit. For example, if a customer claims that your e-commerce business failed to deliver a product on time, resulting in financial loss, professional liability insurance will cover your legal costs.
Professional liability insurance is also known as errors and omissions insurance.
product liability insurance
Product liability insurance protects your e-commerce business if the product you created, manufactured, or sold does not function properly and causes property damage or personal injury to others, even if a customer misuses the product. I will compensate you.
For example, if your e-commerce business sells a defective product and a customer is injured as a result, product liability insurance will cover the customer's medical and legal costs.
workers compensation insurance
Workers' compensation insurance covers employees who are injured or become ill as a result of their work. It pays for lost income, medical bills, physical therapy, and other expenses. Most states require businesses to carry this insurance, even if they only have one employee.
