Online Clothing Store Insurance
There are over 100,000 online retail stores in the US, and thousands of them are online clothing stores. That number will likely just keep rising, growing an industry that is already worth over $10 billion. In one year alone, online sales increased by 27%. (Source: U.S. Census Bureau). So if you don’t already own an online apparel store, you should consider opening one if you want to be part of a growing industry. But first, make sure you know what kind of coverage you need when you get online clothing store insurance.
Online Clothing Stores Need The Following Insurance
Business Liability Insurance (GL): Even if you don’t have a physical store, you still need general liability for your online clothing store. The main reason is that it will protect you if a customer becomes injured by the products you sell, at which point you will be responsible for the ensuing medical bills. For example, if a young child swallows a button from a jacket you sold and needs x-rays, you will be relieved to have general liability to pay for those bills. This part of your online clothing store insurance policy will also cover you if another business owner claims that your ad is too similar to theirs, or that you committed libel or slander.
Business Personal Property Insurance: Part of your online clothing store insurance policy will be business personal property coverage, or BPP. You especially need this if you have a physical location, such as an office, since this will cover any damages to it. But BPP is also valuable when you run your business entirely online, because it will pay to replace your computer or other equipment when necessary. If you cannot run your business without such equipment, you will need to make sure you add BPP to your online clothing store insurance policy.
Workers Comp Protection: Your online clothing store is successful in large part due to your employees, so it makes sense to protect them when they’re on the job. Whether they work in a factory or an office, they deserve to know their medical bills will be covered if they get injured while working for your business. You can make this clear by adding workers compensation to your online clothing store insurance policy, since this will make sure any hospital bills and missed wages are covered after an injury.
Umbrella/Excess Liability: Though general liability is an important part of your online clothing store insurance policy, it’s considered the bare minimum. If you want more coverage to protect your business, excess liability is recommended. This just extends the amount of coverage on the general liability you have, which you will appreciate if you’re ever responsible for a customer’s injuries or have related expenses.
Cyber Crime Liability: When you own an online clothing store, you face the possibility of cyber crime, which can derail your business in many ways. If you want to reduce the chance of cyber criminals stealing sensitive information or meddling with your finances, you should be sure to add cyber crime liability to your online clothing store insurance policy.