A guide to choosing the ideal e-commerce insurance coverage

All kinds of businesses need the protection of insurance; even an online marketer who doesn’t need a brick and mortar store to run a business is still vulnerable to risks and unfavourable situations.

Ideal insurance coverage is one way to sustain the continuity of your online business and storing your data and applications in a secure cloud facility is another. Choosing to use a secure cloud service as well as insuring your company is a great way to secure the future. In the event that your website is hacked into or data becomes corrupted, you will have no problem recovering your inventories and data.

Before choosing an insurance policy you will want to consider the following:

1) Search for commercial insurance specialists

You don’t want to hire a jack-of-all-trades-master-of-none insurer; you need someone who has a good understanding of everything you need.

2) Ask business owners in your niche for a recommendation

This is one of the best ways to get exactly what you need. Your counterparts will be able to recommend the best insurance specialists in your field.

3) Ask potential brokers key questions

When you find a broker that seems like a good catch, ask him key questions like “have you worked with an e-commerce business before? Do you understand everything my business entails? Their answers to questions will guide your decision.

The insurance policy must be tailored to your business activities. Consider getting any or all of these insurance policies:

Product liability insurance

A customer could demand compensation if the product he buys from your company causes an injury or damage. If you sell electronic appliances online, for instance, a customer could claim you sold a faulty component that led to a fire outbreak. Product liability insurance will cover such expenses.

Employer’s liability insurance

If you have employees, the law demands you have employer’s liability insurance. This insurance covers you when your employee claims to have fallen sick or sustained an injury in the workplace.

Property and stock insurance

You will want to consider property and stock insurance if your company stores its products it sells online in a warehouse. If fire or flood destroys the location where you store these products or if they get stolen, stock insurance will cover the cost of recovery.

Transit insurance

You will always have to transport your goods to your customers and anything could happen to them while in transit. Transit insurance covers the costs incurred as a result of a mishap

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