Buy eCommerce Insurance

eCommerce insurance is a type of insurance coverage specifically designed for businesses that operate online. This insurance protects eCommerce businesses from potential losses and liability claims resulting from their online activities.

The coverage may include protection for the business's website, online transactions, products and customer data, as well as any potential lawsuits or legal disputes arising from the business's online activities. Examples of eCommerce insurance coverage include cyber liability insurance, product liability insurance, errors and omissions insurance, and general liability insurance.

The purpose of eCommerce insurance is to provide financial protection to businesses in the event of a loss or liability claim, allowing them to continue operating their online business with confidence.

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small eCommerce businesses ranges from $27 to $49 per month based on location, size, payroll, sales and experience.

Three decades ago, E-commerce was nonexistent. In today's world, there are millions of different businesses selling products and offering services online.

E-commerce businesses face different risks than traditional businesses, but the risks are still there, and mitigating them requires the purchase of eCommerce insurance that is specially designed for the unique needs of the E-commerce genre.

E-commerce is poised for growth. By 2017, spending online is estimated to top $370 billion, with an estimated 10 percent of all retail sales occurring on the web. With this growth comes additional litigation from customers who feel they were wronged in some way by E-commerce sites.

As an operator, you face claims from customers, some of which are covered by a business owner's policy, or BOP. This type of policy covers general liability. However, a standard liability policy on its own is not enough. You must also safeguard your business against potential data security breaches and business interruption with eCommerce insurance.

When conducting business online, there is an exchange of sensitive data belonging to customers, and there is also valuable business information that is generally stored on secure databases. Regardless of safeguards in place, breaches do occur.

While proper risk management can offset some breaches, some are inevitable. Being prepared for the fallout and claims against you is important, no matter what type of E-commerce business you operate. If your customer's information is compromised, you can be held liable.

Business interruption is another risk that E-commerce business owners face. If you are reliant on a third-party provider for shipping, internet service, or other services, then your business can be impacted by problems with that third party.

For example, if they experience a business stoppage, their problem can lead to reduced profits for your business.

Speaking with a licensed and knowledgeable insurance agent about your inherent risks is a good start when shopping for the right type of level of protection for your particular business. Some of the eCommerce insurance coverage types you might consider, based on your business' unique structure include:

• Transportation coverage. Shipping errors that result in loss of money for your business are covered by transportation coverage.
• Contents coverage. If you have a warehouse or manufacture the products you sell, then contents coverage gives you comprehensive coverage for your tools and machinery.
• Worker's comp. Worker's compensation coverage is vital for E-commerce businesses with employees. This insurance provides protection for employees who are hurt or become ill due to a work-related peril and is mandatory in.
• Intellectual property insurance. You can be sued for the rights to software, gaming operations or data. Intellectual property insurance covers the cost of defending yourself in court.
• Directors and officers coverage. Liability of directors and officers for your business is mitigated with this type of coverage. It covers operational mistakes that end up costing your company money.

There are several reasons why eCommerce businesses may face lawsuits, including:

• Product Liability: If a customer claims that a product purchased from an eCommerce business caused them harm or damage, such as a defective product or inadequate product warnings, the business may face a product liability lawsuit. Product liability insurance can help eCommerce businesses cover the costs of legal defense, settlements, or judgments related to such claims.
• Intellectual Property Infringement: eCommerce businesses may be sued for alleged copyright or trademark infringement, such as selling counterfeit goods or using copyrighted images or logos without permission. Intellectual property insurance can help cover the legal costs of defending against such claims and potential damages.
• Privacy and Data Breach: If an eCommerce business collects and stores customer data, they may face lawsuits if there is a data breach or privacy violation, resulting in the exposure of personal information. Cyber liability insurance can provide coverage for legal costs, notification and credit monitoring services for affected customers, and potential damages.
• Contract Disputes: eCommerce businesses may face lawsuits related to contract disputes, such as breach of contract, failure to deliver products as promised, or disputes with suppliers or vendors. General liability insurance or errors and omissions (E&O) insurance can help cover legal costs and damages associated with contract disputes.
• Advertising and Marketing Issues: eCommerce businesses may face lawsuits related to false advertising, deceptive marketing practices, or misleading product claims. Advertising liability insurance can provide coverage for legal defense costs and damages associated with such claims.
• Employment Practices: eCommerce businesses may face lawsuits related to employment practices, such as discrimination, harassment, or wrongful termination. Employment practices liability insurance (EPLI) can help cover the legal costs, settlements, or judgments associated with such claims.

In each of these examples, insurance can help eCommerce businesses by providing coverage for legal defense costs, settlements, or judgments. It can help protect businesses from financial losses that may arise from lawsuits, reducing the impact on their bottom line and helping them to continue operating their business. It's important for eCommerce businesses to carefully review their insurance policies and coverage limits to ensure they have appropriate protection for their specific risks and exposures.