Some businesses specialize in providing a service while others focus on production and manufacturing. Still others assist with the retail sale and purchase of tangible goods via brick and mortar and online. You should look into the insurance policies that are best suited for your business if you’re an online seller of tangible goods.
Cyber Risk Insurance
General liability and commercial property insurance policies may not provide the protection your business needs for cyber risks. Cyber risk insurance offers coverage for losses that your company, your customers and suppliers may suffer. It offers benefits for network damage, virus damage, costs related to notifying clients, vendors, or suppliers about data breach, some third party liability coverage, as well as business income replacement, if the loss is caused by network or computer problems. You make promises regarding the confidentiality of customer data that you collect as an online retailer. Cyber risk insurance can help you protect yourself against the risks of your data being stolen.
Without cyber risk insurance you might be forced to pay out of pocket to repair or strengthen virus-laden networks, to replace stolen data, to notify those affected by data breaches, and to cover any loss of profits.
Commercial Property Insurance
Most likely, your business has property. You may have regular business supplies, such as printers, scanners, and office furniture, but also merchandise that you ship out to clients. The property may be damaged if it is exposed to a covered risk such as fire or hurricane. You will not be covered for losses if your business is conducted out of your residence and you do not have home insurance. A commercial property insurance policy will cover these items regardless of whether they are in your home. It also provides liability protection in the event that someone is injured on the premises, such as a vendor, delivery person, or supplier.
If your property is stored in a rented warehouse your landlord’s insurance policy might not cover you for all damages, including liability. Commercial property insurance is essential for renters who store merchandise.
General and Professional Liability
If tangible goods you provide or sell cause damage to customers, you may be liable. This exposure should be covered by general liability insurance. Professional liability insurance might be an option if you are a professional in order to sell your product.
You should also consider product liability insurance. Manufacturers need product liability insurance. However, retailers who make certain products available to the public can still be sued for negligence or breach of warranty. This coverage is vital for your business.
Insurance for business interruption
Profits and income will be lost if you have to close your business due to repairs being made and property damage. A business interruption policy can reimburse you for these losses. These policies cover bills due even if your business is shut down. They also provide the means to pay temporary locations.
You may be asked to provide receipts showing your average profit over the past few years when you are choosing business interruption insurance limits. Keep in mind the possibility that your company might be impacted by a loss during peak season. Also, consider any ongoing expenses and the time you could be without your company.
We can help you, even if your online business isn’t certain what type of specialized insurance it needs. We can help you protect your assets by giving you a call at our agency.
