The Internet has many ways to make things possible from all over, one these would be running a business directly from the comfort of your home. For many business owners, there dream has come to reality that they can be there own boss. This doesn’t mean you need comprehensive commercial insurance. Your insurance needs are going to be the same as a regular storefront, but you might have to face different risks that a standard insurance policy might not look at.
The majority of businesses today are obtaining some insurance coverage’s through a Business Owner’s Policy (BOP). Which this lumps several different types of policies into one plan. You want to find something that can meet your needs, but do you know exactly what insurance is needed for an e-commerce business?
Investing in standard policies first should be:
- Property Insurance: Just because your not operating a physical business at a storefront location doesn’t mean you don’t need property protection. What would happen if your home/headquarters catches on fire? This type of insurance would help pay for the repairs, and also any damage done to computer issues and data loss.
- Liability Insurance: If you have loss any data or libel, and if someone tries to sue you, liability insurance will help pay for the defense costs, as well as for settlements being filed against you. It’s extremely important to set the appropriate limits for this particular coverage, because lawsuits can sometimes climb into the millions.
- Workers Compensation: This is if you have one or more employees, this is likely required by your state that you can offer workers compensation. This is for if someone gets injured on the job, and this benefit will pay the medical expenses and protects you from being sued. Double check to make sure with the state board that you are meeting the policies and law standards.
Less common forms of insurance:
- Intellectual Property Insurance: This is a form of liability insurance; with this coverage it protects you in case you are being sued for copyright infringement. This could be for if you have your own idea or trademark that is 100% original, many claimants can simply take all kinds of businesses to court, due to them not having the money to pay for a court case.
- Transportation Insurance: Many e-commerce businesses are retail based, who rely on a second party shipping and handling to transport goods. Many of those shipping facilities do have their own transportation insurance. You need to make sure your goods are covered, and this policy helps revoke from losses due to fail in shipment.
- Business Interruption Insurance: It’s true the Internet never does sleep. There’s always a chance that a glitch could kick you offline for days, whether it be a natural disaster or some third-party problem. If it’s a long enough interruption, you could suffer profit losses. This type of policy can help you recover once you’re back online.
It’s important to connect with your insurance agent at Brazelton Insurance Group when searching for the right e-commerce insurance products.