Selling to customers in other countries can expose your business to liability claims, shipping disputes and product-related lawsuits that fall outside the boundaries of a domestic policy. If your e-commerce business ships internationally and a claim arises from a customer in another country, an unexamined gap in your coverage could leave you absorbing the full cost.
What Do E-commerce Policies Typically Cover?
E-commerce businesses may consider the following policies:
- General liability insurance for third-party bodily injury or property damage claims, including those arising from issues in the products you sell
- Commercial property insurance covering inventory, equipment and other physical assets
- Cyber liability insurance for data breaches or online security incidents
- Business interruption insurance to cover your losses when a covered event disrupts your operations
Do They Cover International Customers?
Coverage for international customers may vary by carrier and policy language. Policies may be written with a domestic geographic scope, which means claims originating outside the United States may be excluded or handled differently. Some insurers may offer endorsements that extend coverage internationally, while others require a separate policy to address claims in foreign jurisdictions.
What Should I Do if International Customers Are Excluded?
You have several options if your current policy excludes international claims. Request a foreign liability endorsement from your current carrier, ask about a standalone international policy or work with a broker who can access surplus lines markets. Document where your customers are located so coverage discussions are grounded in your business activity.
Get the Right Policies
Coverage that fits your domestic sales may not extend to a global customer base without adjustment. Reviewing your policy language before a claim arises can financially protect your business.
Contact Well Insurance to review your current e-commerce policies and identify any gaps.
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.