Buy Internet Business Insurance

Internet Business Insurance is a type of insurance policy that protects a business that operates solely or primarily online from financial losses resulting from a range of risks and hazards. These risks may include cyber attacks, hacking, data breaches, theft of intellectual property, and other online security threats.

The insurance coverage may also include protection against liability claims, loss of income, and other losses resulting from online business operations. The coverage and protection offered by Internet Business Insurance vary depending on the type of policy and the specific needs of the business.

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small internet businesses ranges from $27 to $59 per month based on location, type of good sold, sales and experience.

While owning an internet-based business cuts your overhead, there are still inherent risks for IT companies and their owners. A large portion of them face consolidation and competition, many of them fail to market and develop new products, and a big number of them face intellectual property infringement.

Operation of an IT business or any internet-related business puts you at specific risks that may not be an issue in a regular brick-and-mortar location. You probably handle digital assets, social media and email, but you may also be privy to sensitive data belonging to other people and companies.

Even if you are operating a web-based business, the laws that apply to trademarks, slander, libel and copyright still apply. This is why you should have internet business insurance.

Some insurance companies hesitate to provide internet companies with internet business insurance due to the liability issues that exist for these businesses. Bear in mind that even a standard business insurance policy is unlike to prove the protection that you will need if your business is ever faced with an accusation of copyright infringement, data loss or breach of data.

Only internet business insurance can afford this protection. Liability insurance for technology companies protects against several perils, including:

• Industrial espionage
• Hacking and liability and cyberspace
• Computer viruses
• Data loss
• Data breaches
• Denial of service or DOS attacks

Many insurance companies face a lack of reliable information about the risks that web-based companies face. New developments are continually evolving that provide benefits to internet-based business and tech companies, and these developments often put these types of businesses at enhanced risk and add to their costs.

Insurance companies typically have no real way to calculate the true potential costs of cyber perils, so they write internet business insurance policies for companies with their own interests in mind.

Determining your exact risks as the owner of an IT company, tech business or internet-based business can be hard. Launching a business online, whether from an office or your home, involves a number of perils that you would go beyond the norm.

For instance, if you build a website, you have the same liability legally as a magazine or newspaper, although you may not treat the content of the business he same. This is why internet or IT business insurance is so important. Some of the scenarios in which an internet business insurance may help include:

• An employee of your business places an image that is copyrighted onto your homepage without getting the consent of the image's owner.
• A copyright has already been established for the name of your website or business.
• An employee of your online business writes remarks about the competition in a press release or online forum.
• Your site is hacked and your operations are shut down without your control, interrupting business.
• An angry employee manipulates or breaches customer payment info.

Internet business insurance can give your business critical protection and reduce your exposure to financial loss from claims resulting from incidences such as these. You can reduce those risks by conducting security audits to mitigate weaknesses in your server or network.

You can also establish procedures to prevent breaches from hackers by maintaining a firewall and password guidelines. Remote backup storage for your server is also a good way to stave off attacks.

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

Intellectual Property Infringement: Internet businesses may face lawsuits for copyright, trademark, or patent infringement. For example, if an online retailer sells counterfeit products, they may be sued for trademark infringement. Intellectual property insurance can protect internet businesses by covering legal costs and damages associated with such lawsuits.

Data Breach or Privacy Violation: Internet businesses that handle customer data are at risk of data breaches or privacy violations, which can result in lawsuits. For example, if a social media platform fails to adequately protect user data and suffers a data breach, they may be sued for negligence. Cyber liability insurance can help cover legal costs, notification and credit monitoring services for affected customers, and potential damages.

Defamation or Libel: Internet businesses, particularly those that rely on user-generated content, may face lawsuits for defamation or libel. For example, if an online review platform publishes a defamatory review about a business, the affected business may sue for damages. Media liability insurance can help cover legal costs and damages associated with defamation or libel lawsuits.

Breach of Contract: Internet businesses may face lawsuits for breach of contract, such as failing to deliver goods or services as promised. For example, if an e-commerce platform fails to deliver products to customers as per their purchase agreement, they may be sued for breach of contract. Errors and omissions (E&O) insurance can protect internet businesses by covering legal costs and damages arising from alleged breaches of contract.

Discrimination or Harassment: Internet businesses, including online marketplaces or social media platforms, may face lawsuits related to discrimination or harassment. For example, if an online marketplace refuses to do business with certain sellers based on discriminatory reasons, they may be sued for discrimination. Employment practices liability insurance (EPLI) can help cover legal costs, damages, and settlements associated with discrimination or harassment lawsuits.

In each of these examples, insurance can help internet businesses pay for lawsuits by covering legal defense costs, settlement or judgment amounts, and other related expenses. It is important for internet businesses to carefully review their insurance policies to understand the scope of coverage and ensure that they have adequate insurance protection in place to mitigate potential risks and liabilities. Consulting with a qualified insurance professional can also help internet businesses determine the right insurance coverage for their specific needs.