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Protecting Your E-commerce Company with Business Insurance

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Between ever-advancing technologies and an increasingly fast-paced demand for consumer goods and services, the business industries of the world have seen a massive boom in online commerce. The global community is connected like never before. With so many financial transactions and services taking place online, it can be easy to forget that at the heart of things an e-commerce business needs many of the same protections that a brick-and-mortar retailer does. Here at Prime, our expert brokers can help tailor the right insurance package to protect your e-commerce company’s operations. In the meantime, here are some things to consider when it comes to online business insurance.

Cyber Security

When we think of theft in retail, we picture a smash-and-grab or even shoplifting. When it comes to e-commerce it can be hard to fathom the inherent risks of conducting business online. Many online businesses store client data such as contact and payment information. Unfortunately, the online world can be vulnerable to issues like breaches of data wherein the company’s servers are hacked, and a data breach occurs. Repairing these breaches can be costly as are the communications involved in notifying clients. Moreover, data breaches can lead to costly lawsuits. If you’re looking for business insurance for your e-commerce company, we can help you navigate the nuances of cyber liability insurance to protect your clients and your company from devastating breaches.

Protection from your products

If your business sells or ships products to consumers, then your company’s reputation and financial security depend on the safety of those products. If your product injures a client due to a manufacturing defect or any number of other mitigating factors, your company could be liable for damages. Injuries can range from choking incidents with toy products to skin burns from cosmetic products. This is why product liability insurance needs to be part of your business insurance package. It protects you from claims of damage by-products you either sell, manufacture, or distribute. If your business operations are slightly more complicated, say your company is part of a distribution chain, then you’ll want to consult with your broker to determine whether you will need to add any additional insured third parties to your insurance.

What about general liability?

Most businesses that have general liability insurance do so to protect themselves from what is known as “slip and fall” claims. Many brick-and-mortar businesses rely on this type of insurance to protect them from legal costs incurred if a third party is injured on your premises. What if I don’t have a premises? Well, that’s not necessarily a reason to leave general liability coverage off your insurance policy. General liability can also provide advertising coverage from legal claims of slander, copyright infringement, and libel. If you’re not sure whether this type of coverage would be appropriate for your business operations, connect with one of our knowledgeable brokers to discuss areas where your company may be vulnerable to this type of risk.

There are so many ways to run a business, and therefore so many kinds of insurance designed to protect your specific interests as an e-commerce company. By far, the best way to ascertain which business insurance is right for you is to discuss your needs with a qualified broker. You may benefit from insurance policies that you haven’t even heard of before such as professional liability insurance (which differs greatly from general liability insurance) or business interruption insurance or even inland marine insurance. Reach out to one of our experienced brokers today for coverage with every click.