A brick-and-mortar establishment comes with known risks, but e-commerce has specific liabilities. Some are shared with traditional stores, but others are unique to online businesses. Business insurance tailored to meet the needs of your online operations can make all the difference when you face unexpected losses. 

What is Covered in E-Commerce Business Insurance?

E-commerce business insurance policies include: 

• General liability insurance
• Commercial property insurance
• Commercial auto insurance
• Worker’s compensation insurance
• Business income insurance

What Types of Businesses Need E-Commerce Insurance:

Any merchant activity, selling services, products, or digital wares, will benefit from enrolling in an e-commerce insurance plan. 

• Online retail: Whether you are selling pajamas or personalized jewelry, interruptions in your supply chain, shipping delays, and employee injuries can cause financial setbacks that endanger your company’s survival.
• Traditional retail with an online component: If you allow store or curb-side pick-up for online orders or operate a whole range of online-only merchandise in addition to the offerings at your physical location, you face the combined liabilities of commercial property and digital ransomware or data breaches. 
• Virtual marketplace sellers: If you sell your art, crafts, or services on platforms like Etsy, eBay, Airbnb, or Fiverr as a source of income, it’s worth covering your losses. If there are any claims about your products or quality, you can resolve the issue and move on rather than facing costs that can be a killing blow. 
• Online rideshare work: You are considered an independent contractor when you drive for Uber or Lyft. This type of work does not fall under traditional e-commerce and may need a specialized plan focused on commercial auto insurance. Your auto insurance should be customized to cover any damages not covered by the rideshare company. 

What Happens If I Don’t Get E-Commerce Business Insurance?

When you experience what can happen without insurance, it becomes evident that proper coverage is a necessity, not a “nice to have.” Some examples of potential liabilities that will have you paying out of pocket include:

• Employee injuries: If your employee climbs a ladder to access items from a top shelf but falls and breaks their ankle, you could have to pay their medical bills out of pocket if you are not covered. 
• Customer lawsuit: This is particularly relevant for companies selling food, cosmetics, or medical items. If a customer claims your product made them sick, no coverage can put you in danger of a long and expensive court process. 
• Damaged inventory: If your stock is ruined by flood or fire, you may face delays, refunds, and a wave of customer complaints. E-commerce insurance can cover your losses. 
• Stolen information: Hackers could access your customer database and sell it to bad actors. This is embarrassing and can also result in significant issues with customer service. 
• Car accidents: Your delivery vehicle, which may also be your personal property or that of an employee, could experience unexpected damage on the road. Personal auto insurance will likely not cover the losses the vehicle is used for regular transport and delivery runs. 

Protect Your E-Commerce Business with the Correct Coverage

Give yourself peace of mind for the year ahead. E-commerce is an evolving field; ensure your safety net expands with your enterprise. Please meet with one of our e-commerce business insurance agents about acquiring or updating your current coverage today.