Business Insurance For eBay Sellers Policy Information
Business Insurance For eBay Sellers. You've amassed an inventory of products and have put a lot of effort into setting up your eBay shop. You make sure that your postings are attention-grabbing and have set the perfect prices to move your products.
eBay is an internet auction website where sellers offer goods to the general public through a bidding process, with the highest bidder purchasing the goods. Almost any type of goods can be sold eBay, including antiques, books, clothing, collectibles, electronics, motor vehicles, real estate, sporting goods, and toys.
Sellers can reach potential buyers all over the world, or limit to specified geographical areas. There may be a minimum bid set for particular items. eBay earns a commission based on the amount of sales.
So after putting so much effort into your eBay shop, it would be terrible if something unexpected happened and derailed your success. Like any other business owner, as an eBay seller, investing in insurance is essential.
Why do eBay sellers need insurance? What type of business insurance for eBay sellers do you need? Read on to find the answers to these questions and more.
Business insurance for eBay sellers helps you protect your eBay store with important coverage that personal policies just can't provide - with rates starting as low as $23/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked business insurance for eBay sellers questions:
- How Much Does Business Insurance For eBay Sellers Cost?
- Why Do eBay Sellers Need Insurance?
- What Are The Insurance Requirements For eBay Sellers?
How Much Does Business Insurance For eBay Sellers Cost?
The average price for the required $1,000,000/$2,000,000 General Liability policy for eBay sellers ranges from $23 to $59 per month based on based on location, products offered, what country the products come from, gross sales and experience.
Why Do eBay Sellers Need Insurance?
As an eBay seller, you face several unique risks. Your inventory could become damaged by a fire or a flood. A seller could file a lawsuit for you, claiming that a product they purchased from your eBay store was defective and caused them harm.
Those are just examples of some of the risks that you face as an eBay seller, and if any of those scenarios were to occur, you are liable for the cost - which could be astronomical.
If your inventory were wiped out in a fire or flood, not only would you be out the money you spent when you initially purchased the products, but you'd also have to replenish your inventory to keep your eBay store up and running. If a buyer filed a lawsuit against you, you could be looking at exorbitant legal expenses. Would you be able to cover such expenses on your own? Even if you could, it's likely that you'd take a big financial hit.
That's why eBay sellers insurance is so important. With the right type of business insurance for eBay sellers coverage, instead of paying the expenses that are associated with unexpected events yourself, your insurance company would cover the expenses for you. In other words, insurance can help to protect you from financial ruin.
What Are The Insurance Requirements For eBay Sellers??
While we couldn't find any specific requirements on eBay's website, it makes sense for any business to have insurance - eBay sellers included. An insurance agent that specializes in commercial policies would be able to help you determine exactly what type of coverage you need to properly protect your business.
However, with that said, there are certain types of business insurance for eBay sellers policies that all eBay sellers should carry. Examples include:
- General Liability Insurance - This policy provides coverage for third-party injury and property damage claims. For example, if a buyer were to file a lawsuit against you, claiming that a product they purchased from your store was defective and damaged their property, general liability insurance would cover the cost of your legal expenses, as well as any compensation that you may be required to pay.
- Commercial Property Insurance - Whether you store your inventory at a warehouse or in your home, you'll probably need to carry commercial property insurance. This type of coverage will protect your inventory, shipping products, and any equipment that you use to operate your store (computers, scales, cameras, sewing machines, etc.) should they become damaged. For instance, if a fire broke out and damaged your inventory and the supplies that you use to run your eBay store, commercial property insurance would help to cover the cost of replacing the damaged items.
- Business Interruption Insurance - In the event that you had to stop the operation of your business - if you had to rebuild after a fire or storm, for example - business interruption insurance would help to replace the income that you would lose while your operations are shut down.
- Shipping Insurance - While the USPS, FedEx, and other postal services do provide some insurance for the products you need to ship, it's a wise idea to invest in your own shipping insurance policy. If any of the packages that you ship are lost, stolen, or damaged while they are in transit, shipping insurance will help to reimburse you the value of the item.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7389 Business Services, Not Elsewhere Classified
- NAICS CODE: 454110 - Electronic Shopping and Mail-Order Houses
- Suggested ISO General Liability Code(s): 16750 - Internet Retailers
- Suggested Workers Compensation Code(s): 8810
Business Insurance For eBay Sellers - The Bottom Line
If you plan on becoming a seller on eBay, it's important that you invest in the right type of insurance coverage to protect your business. To find out if there are any other policies you should invest in and how much coverage you should carry, speak with a reputable broker that has experience in commercial insurance.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
Additional Resources For Information Technology & Internet Insurance
Learn about small business IT technology insurance policies that help protect IT businesses, consultants & subcontractors from the unique risks that small tech businesses face when they work.
- Application Development
- Amazon Seller
- Computer Electronic Repair
- Computer Programming
- Computer System / Network Developer
- Cyber Liability
- Data Breach
- eBay Sellers
- Electronic Data Processing Equipment
- Internet Business
- IT Consultant
- Online Store
- Software Developer
- Technology Services
- Website Design
Some the more popular IT businesses do IT contracting or freelancing work. These businesses have specific risks they face, and can have huge exposures to uncommon risks. Even if the business is very careful, a small oversight or mistake can lead to a large and expensive lawsuit.
For information technology companies, like some of the more popular ones listed below, data security is paramount:
Application Development (Mobile & Web), Business Intelligence / Data Mining Businesses, Computer Installation & Repair, Computer Programming, Computer Retail Store, Data Analysts, Architects & Scientists, Database Administrators, Frontend Developers, Hosting, IT Business Consulting, IT Project Management, IT Staffing, IT Training, Information Technology Consulting, Life Sciences & R&D, Network Architects, Network Security Consultants, System & Network Design, Technical Writing and Web Site Development.
The IT business segment has a critical need for professional liability and errors and omissions coverage. If coverage applies, the insurer has several rights and duties such as providing a legal defense against claims and suits brought by parties claiming damages. The insurer is permitted to investigate all claims to determine whether they are covered by the policy and they may choose to litigate, deny or settle claims.
Most policies providing coverage for electronic data liability, computer professional liability, and computer errors and omissions are claims-made contracts.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Computer Fraud, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Errors and Omissions Liability, Professional Liability, Umbrella Liability, Hired and Nonowned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Flood, Real Property Legal Liability, Forgery, Cyber Liability, Employment-related Practices Liability, Directors and Officers Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.