In today’s society, it’s easier than ever to start an online store. Whether you’re selling through a platform like Etsy or have created your own commerce site through Wix or Shopify, you can have your products up online and ready to sell within no time. It’s now simple for your products to reach customers almost anywhere. However, it’s important to remember than an online business is still a business, and there will be risks involved with you selling your items. The right business insurance coverage can protect you and your business if something goes wrong.
Do I need business insurance?
Most e-commerce sites like Shopify or Etsy will require you to carry business liability insurance. If you have employees, you will need workers’ compensation insurance, too. Even when you don’t necessarily need insurance, you should consider the benefits of coverage. Protecting your business comes first, and this includes finding the right protective policies. Running an online store without insurance coverage that can result in losses that can close your business in an instant.
What are some of the common risks that online stores face?
Every business owner has certain risks that they face on a daily basis. Even though you don’t have a physical storefront, your e-commerce business will have some unique risks. Some of the most common risks involved with selling services or products online include:
- Property damage
- Customer injuries
- Illness caused by your product
- Flaws in design or manufacturing
- Data breaches
What insurance does my online store need?
Your coverage needs will vary depending on the type of products and services you plan on selling. An insurance agent will tailor coverage to the specific needs of your online store or industry niche. Generally, most online store owners need the following coverage:
- General liability – This protects you from customers and third parties that sue your business because of bodily injury or property damage.
- Product liability – This protects your business if a customer is injured or falls ill because of your product.
- Cyber liability – If your business stores sensitive data online, you should consider purchasing cyber liability insurance. If this information falls into the wrong hands, your business can pay dearly in the form of recovery expenses and its reputation. Even small businesses are vulnerable to hackers and cyber attacks.
- Professional liability – This includes coverage from risks such as product errors, copyright infringement (even if unintentional), or errors in designing or delivering a product.
There may be additional insurance policies you will need to consider. For example, you may need to protect your business property such as your computer, tools, supplies, and inventory.
Ready to get started on your reliable business insurance? Contact Bell Black Insurance. Serving Idaho Falls, Island Park, Driggs, Victor, Swan Valley, Ashton, and the neighboring communities in Idaho, as well as Jackson and Star Valley in Wyoming; we are ready to get you covered today.