E-commerce Business Insurance
E-commerce insurance is specialized coverage for companies that sell goods and services online. It can protect you from costly claims due to data breaches and other unexpected events, including lawsuits, theft, and property damage.
A retail e-commerce insurance policy can provide peace of mind so you can focus on growing and running your company. Get a customized quote for online sellers today.
Why online retailers need insurance
Online retailers need business insurance to safeguard against accidents, lawsuits, and covered financial losses. The right coverage can help you avoid paying expensive claims out of pocket.
For example, a hacked e-commerce business without insurance would be responsible for costly investigation, remediation, and recovery expenses. Affected customers could also sue. Customized insurance for an online business can offer crucial financial support by helping pay for data restoration and other claims.
It's also a good idea to have protection from property damage, inventory loss, and other risks unique to your online store.
Types of online retailer insurance
Finding the right e-commerce business insurance depends on your business's risks. The following are common types of business insurance for internet retailers:
General liability
General liability insurance for e-commerce protects your business from a variety of third-party claims, such as customer injury and property damage. It also covers advertising injury. For example, if someone claims your latest advertisement infringes on their copyright, general liability could help with your legal costs.
Business owners policy (BOP)
A business owners policy is a good choice for many small and medium e-commerce companies because it packages important insurance coverages into a single policy. It typically includes property insurance to cover physical assets, like buildings and inventory, as well as liability insurance to protect against claims of bodily injury or property damage.
Customers can also get business interruption insurance on a BOP, which provides financial protection for lost income and other expenses if a business can't operate due to a covered loss.
Cyber insurance
Cyber insurance provides e-commerce businesses with financial protection and legal support after a cyber attack. For example, if you experience a data breach, cyber insurance would help with the investigation and data recovery. It could also protect against related customer claims.
Learn more about cyber security tips for small businesses and cyber insurance cost.
Workers' compensation
Workers' compensation insurance protects employees who get sick or injured because of their job. It includes medical expenses, lost wages, and rehabilitation costs. You might need this coverage if you have employees, depending on your location and business contracts. Explore business insurance by state to learn more.
Choosing the right e-commerce insurance
To choose the right e-commerce business insurance, assess your company's needs and risks. You'll want to consider:
- The products you sell
- Your customer base
- Employees
- Inventory and other property
- Sensitive data
- Legal requirements
Next, match your needs with the appropriate coverages. If you're still unsure about your options, call us to consult with an insurance professional. They can evaluate your business, walk you through the benefits of e-commerce insurance, and connect you with the right policy.
Not sure what business insurance you need?
You can reduce your risk of cyber attacks by following best practices for data security. To protect your business, use encryption services, limit unnecessary data collection, and scan your website for weaknesses that hackers could exploit.
Learn more about how to protect your small business from cyber security threats.
How much does e-commerce business insurance cost?
E-commerce insurance cost varies based on your specific needs. Your price will depend on the size of your business, your operations, coverage selections, unique risks, and more. Small online sellers will typically pay less than a traditional retailer with a physical storefront and employees. Get more information about business insurance costs.
Get e-commerce insurance today
Protect your e-commerce business with insurance tailored to online retailers. The right coverages can safeguard your business's assets, inventory, and customer data from potential risks and liabilities. Find more tips on how to get business insurance, and get started with a customized quote.
