Although your presence is online, e-commerce businesses face risks. Accidents can still happen, and virtual companies have an obligation to their customers, employees and other parties. Having proper insurance can provide essential coverages for these exposures.
The dedicated team at Well Insurance can help your business build a comprehensive insurance portfolio that meets your needs. Contact us today to get started.
Do E-commerce Businesses Need Insurance?
Like all businesses, e-commerce operations need to evaluate their risk profile and determine which commercial insurance coverages are necessary. Whether you are an online retailer, auction site or another type of business with a virtual presence, you could receive crucial coverage from several different policies.
A comprehensive insurance plan can help mitigate financial exposures and reduce your out-of-pocket burden while covering your business, clients and stakeholders. Some businesses may use online platforms to sell products; these sites’ policies may require you to have insurance.
Coverages Are Available for E-commerce Businesses?
Several different types of coverage are typically available for e-commerce businesses. Some options include:
- General liability insurance—This may compensate third parties (e.g., clients) if your business is responsible for their property damage, bodily injuries or personal injuries. It may also provide payments to help cover associated legal costs.
- Product liability insurance—If your business manufactured, designed or sold a product that caused injury or property damage to another individual (e.g., through an unforeseen defect), this may compensate them and help pay for legal expenses.
- Cyber liability insurance—This may help pay legal costs, regulatory fees and related expenses if your e-commerce business experiences a data breach or cyberattack that exposes confidential information.
- Property insurance—E-commerce businesses often own equipment, machinery and other property, even if they do not have a physical storefront. Property insurance may pay for repair or replacement costs for these items if they are damaged or destroyed by cover perils (e.g., fires, theft or vandalism).
Depending on your needs, your business may consider other policies, including:
- Inland marine insurance
- Commercial auto insurance
- Employment practices liability (EPLI) insurance
- Commercial crime insurance
- Directors and officers (D&O) insurance
- Workers’ compensation insurance
- Errors and omissions (E&O) insurance
Work with your Well Insurance agent to determine the types and amounts of insurance you need for your e-commerce business. Hazards vary and may differ from those of brick-and-mortar companies, but we can provide information on coverage options, exclusions and limits.
How Much Does Insurance for E-Commerce Businesses Cost?
The cost of commercial insurance for e-commerce businesses varies. The size of your business, your industry, your selected coverages and your claims history could all impact premiums.
At Well Insurance, we are proud to offer specialized insurance products for the e-commerce industry, and we can work with you to help you secure the best policies at the best value. Contact us today to get started.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.