With the increase in e-commerce businesses in recent years, the subject of ensuring these businesses properly has become increasingly applicable. After all, according to U.S. Department of Commerce figures, e-commerce grew by 14.2% in 2021, accounting for $870.78 billion in spending, and is only showing signs of increased growth as more and more shoppers are opting for online buying over traditional brick-and-mortar options. Of course, owning a business of any type isn't without its risks.
For example, while being an online retailer in today’s market can reduce some liability risks you might associate with owning and operating a traditional brick-and-mortar store (like slip and fall accidents or storefront damage), there are still some risks to consider and protect yourself against as an e-commerce business owner. The best way to counteract these risks is to get e-commerce business insurance.
Read on to learn more:
With your e-commerce business, you reach a worldwide audience and are not restricted by geographical limits like an in-person business. This wider audience can, unfortunately, come along with an increase in liability as well, and since e-commerce is such a unique industry, as you might imagine, the risk profile for such a business is equally unique and nuanced.
E-commerce brings about many new and unexplored business models. This means that when you join this industry, you are also embracing some business risks you might not have previously encountered. This is especially true if you are switching over from a traditional business setting to the new e-commerce world.
This new environment in which you are doing business demands a new way to protect you as a business owner from the risks of doing business. The right kind of insurance can protect you and your e-commerce business from the following situations:
As an e-commerce business owner you want to ensure that you have the following types of coverage:
This coverage will protect you against claims launched by a third party regarding property or bodily injury. Most e-commerce businesses require general liability coverage. Product liability insurance also provides protection against claims related to defective or flawed items for online retailers who sell physical goods. General liability insurance covers:
While General Liability is the most common type of coverage, it is not the only variety you might consider purchasing as an e-commerce business owner. The following are other types of coverage that could prove beneficial to you:
Of course, your cost for e-commerce insurance will vary based on several factors. For example, your price will vary based on the following:
A variety of insurance policies are necessary for your e-commerce business to be adequately protected from lawsuits, accidents, and disasters. Unfortunately, even though you don’t operate your business in a traditional store, it doesn't mean you don't also have risks when it comes to running and operating your business.
To prevent your business from facing fines and lawsuits, it’s important to ensure an e-commerce business in much the same way you would a traditional business with some adjustments. At Winter-Dent, we understand the nuances associated with owning a successful e-commerce business. Contact us today to learn more about what type of insurance coverage is vital for protecting your business.