The Internet has revolutionized the economy in many ways, including making it easier for brick-and-mortar businesses to completely transition to operating online. However, that’s not to say Internet-based businesses operate completely differently than stores with physical presences, as there’s a great deal of overlap. One such example is the need for insurance.
Types of Insurance You Probably Won’t Need
Certain businesses need a variety of insurance types, including property, professional liability, and workers’ compensation. Depending on the type of business, a brick-and-mortar location may need even more specialized types of insurance. For example, medical professionals need malpractice insurance, and moving companies need commercial auto insurance in the event one of their trucks is involved in an accident.
Do online businesses need these specific types of insurance? In many cases, no. For example, a business with no cars won’t need commercial auto insurance, and a business that operates out of a home might already be covered by homeowners insurance (check with your insurance agent to make sure).
Types of Insurance You May Need
There’s no question about it: your online business will need certain types of insurance. The specifics depend on the type of business you run, but there are policies you’ll need to investigate. In many cases, the type of business insurance you may need to purchase is necessary precisely because you operate an online-based business.
For example, if you sell any sort of physical product that has the potential to do harm, you may want to consider obtaining a commercial general liability policy. This policy will protect you and your business from major financial loss in the event one of the products you sell or produce causes some sort of physical or financial loss to the user. The location of the sale (retail or Internet) is irrelevant. All that matters is that it protects the seller.
Seller suspension insurance is a great example of a specific type of insurance that applies almost exclusively to Internet businesses. With this insurance, you’re protected in the event a third-party site (like eBay or Amazon) suspends your business. This type of coverage will assist you with costs incurred in the process of trying to get your account reinstated, and it may also reimburse you for financial losses.
Another type of insurance policy that applies especially to Internet companies is cyber liability insurance. As recent news headlines have demonstrated, much of our online data is not as secure as we’d like. Some of the largest corporations in the world have suffered data breaches that have cost billions. Cyber liability insurance will cover you for losses incurred as the result of a breach of your data.
More people are operating businesses online nowadays, so it’s a good idea to work with experts to ensure your business is covered against all types of losses. Look to the professionals at Altra Insurance Services for sound advice based on years of experience in the insurance industry. In addition to business insurance, we offer reliable homeowners, renters, and car insurance. San Diego residents can call one of our expert agents today at 619-474-6666 to discuss their insurance needs.