Online Retailer Insurance
The amount of online retailers selling products to consumers has exploded over the last ten years as more and more people have gained access to the internet. These sites sell everything from clothes to food, to electronics and everything in between. In many ways, an online business is less fraught with risk than traditional shops. However, they still need to have at least a minimal amount of commercial insurance for protection from unforeseen circumstances and events. If you are the owner of an online retail shop, you should search for a business policy that best suits your needs.
General Liability Policy
General liability is the most basic type of coverage available for small business insurance. As a business owner, it provides you with a broad range of coverage. Although your business operates largely in virtual space, your office is still a place of work. Your business is liable for any accidents that occur there. You probably don’t see a great deal of foot traffic to your online retail offices, but if there is any then you need to have this insurance coverage.
General Liability Insurance Includes:
- Premises Liability – Included in your general liability insurance policy is coverage for your business premises. If anyone is injured in your office or experiences damage to their personal property, then this part of your policy will ensure that the resulting costs are mitigated.
- Products Liability – The products liability portion of commercial insurance is extremely important for online retailers. Your business is selling products and you are liable for them. If a product that you sell causes illness or harm to a customer, your products liability coverage will help you. It will pay for expenses incurred by a faulty product and any costs from law suits.
- Completed Operations – After a customer purchases items from your online retail shop, they may claim injury or harm from your products or services after the set warranty or guarantee period. Your completed operations coverage will cover your business in this event. This part of your commercial business insurance will cover you both financially and legally through the claims process.
Business Owners Insurance
A business owners policy is a good place to start when searching for business insurance for your online retail shop. A BOP, as it is known, is a policy that protects your business’s assets, both tangible and intangible. As the owner of the business, you have the ability to tailor this policy to meet the exact needs of an online retailer. For example, in addition to general liability, a BOP may include protection for buildings and their content, valuable papers, business income, business interruption, employee dishonesty, and electronic data.
A commercial umbrella policy is an add-on to a business insurance policy. If you feel that your business requires more coverage than your general liability has, you can purchase this to increase it. An umbrella policy is always a good thing to have if there is any possibility of a catastrophe occurring that could wipe out your business’s assets. The additional cost is minimal compared to the extra amount of coverage that it provides. You have the option to select how much additional coverage you believe your online retail business needs and your umbrella policy can be adjusted to meet those needs.