Mail Order Insurance Policy Information
Mail Order Insurance. While the annual revenue that mail order businesses generate is on the decline (thanks in no-small part to the increasing popularity of online retailers), this industry segment is still going strong especially in the US.
Many people still don't feel comfortable with entering their credit card information over the internet, and they enjoy watching product demonstrations on television or browsing through catalogues.
If you own or are looking to start a mail order business, it is important as a business owner that you cover yourself from potential lawsuits by buying mail order insurance.
Mail order insurance protects your house from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked mail order business insurance questions:
- What Is Mail Order Insurance?
- How Much Does Mail Order Insurance Cost?
- Why Do Mail Order Houses Need Insurance??
- Why Type Of Insurance Do Mail Order Businesses Need?
- What Does Mail Order Insurance Cover & Pay For?
What Is Mail Order Insurance?
Mail order business insurance is a type of insurance coverage that is specifically designed to protect the owners and operators of mail order businesses. This type of insurance provides financial protection against potential losses or damages that may occur as a result of business activities, such as product liability, product damage or loss during transit, errors or omissions in advertising, or issues with payment processing.
Some common coverage options under mail order business insurance include general liability, product liability, errors and omissions, cyber liability, and property damage. This type of insurance is crucial for protecting the financial well-being of mail order businesses and helping to ensure their long-term success.
How Much Does Mail Order Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small mail order businesses ranges from $47 to $59 per month based on location, size, payroll, sales and experience.
Why Do Mail Order Houses Need Insurance?
As with other businesses, mail order firms are exposed to the likelihood of legal action being taken against them for their legal responsibility for property damage or bodily injury arising during the course of their operations.
Lawsuits can be costly to defend - even if you did not harm, and even more expensive if found legally liable.
Mail order insurance is there to help protect you against those losses by offering you insurance to coverage awards made against you, as well as the defense costs and other legal fees.
Why Type Of Insurance Do Mail Order Businesses Need?
The mail order insurance that you require will depend very much on your business set up. For the majority of mail order businesses there are basically the following types of insurance plans that you should consider:
Commercial General Liability Insurance: This insurance protects a business owner against claims made against for the legal liability of the business for bodily injury or property damage suffered by 3rd parties while on your premises.
Mail order insurance may also include products liability insurance that protects you against claims arising from the supply or sale of a product. There are many other coverages that can be added to this policy like employment practices liability and business income.
Workers Compensation Insurance: Workers comp claims pay for employees injured on the job. It is mandated by most states for any non-owner or partner employees. It covers your employees for disease, injury, or death an employee sustains during the course of their employment.
It covers the medical and lost-wage costs (similar to disability) once an employee suffers a work related injury or illness.
Commercial Auto Insurance: As a business owner, you need collision, liability, and comprehensive, medical payments (also known in some states as personal injury protection) and coverage for uninsured motorists.
Professional Liability Insurance: Also referred to as E & O (Errors and Omissions) insurance, this policy provides coverage in the event that your business is held legally liable for any damages caused by your negligence or improper advice.
Additional Insurance For Mail Order Houses
If you have have a larger or more complex businesses, then the commercial package policy may be more suited to your needs. On top of your liability insurance requirements, the commercial package can provide you with a full-range of business insurance products including business interruption and property damage.
If you are uncertain as to what insurance policy you actually require, please contact an experienced insurance agent.
How To Select The Best Insurance Policy
The risks for a mail order business can be very wide owing to the many different exposures involved with the business activities. However, purchasing insurance for your mail order business does not need to a complex process.
Before you purchase insurance, you should first have an outline the risks you face as a business owner - and how you plan to cover those risks.
To identify your business risks, you can simply consult with an insurance professional or even an attorney. A knowledgeable insurance professional can offer you guidance as you select your coverage. They can help you access a portfolio of coverage that is both competitively priced and built specifically for your mail order house.
What Does Mail Order Insurance Cover & Pay For?
Mail order houses can be sued for various reasons, just like any other business. Here are some common reasons and how insurance can help protect them:
Product liability claims: If a customer claims they were injured or suffered damages due to a defective or unsafe product sold by the mail order house, they may file a lawsuit. Product liability insurance can help cover the legal defense costs and any settlement or judgment awarded to the claimant.
False advertising: If a mail order house is accused of making false or misleading claims about a product, they may be sued by customers or regulatory agencies. Advertising injury coverage, which is typically part of a commercial general liability policy, can help cover the costs of defending against such claims and any damages awarded.
Intellectual property infringement: Mail order houses may be sued if they're accused of infringing on someone else's patent, trademark, or copyright. Intellectual property insurance can help cover the costs of defending against such claims, as well as any damages that may be awarded to the claimant.
Breach of contract: If a mail order house fails to fulfill the terms of a contract with a supplier or another party, they may be sued for breach of contract. Commercial general liability insurance can help cover the costs of defending against such claims and any damages awarded.
Employment practices liability: Mail order houses can be sued by current or former employees for issues such as discrimination, wrongful termination, harassment, or other employment-related grievances. Employment practices liability insurance (EPLI) can help cover the legal defense costs and any settlement or judgment awarded to the claimant.
Data breaches and cyber liability: If a mail order house experiences a data breach that compromises customers' personal information, they may be sued for failing to protect that information. Cyber liability insurance can help cover the costs of defending against such claims and any damages awarded, as well as expenses related to managing the breach, such as notification and credit monitoring services.
In each of these examples, insurance can help mail order houses by paying for legal defense costs, settlements, and judgments related to the lawsuits, helping to protect the business's financial stability and reputation. However, it's crucial for businesses to carefully review their policies and ensure they have the appropriate coverage for their specific needs and risks.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5961 Catalog and Mail-Order Houses
- NAICS CODE: 454111 Electronic Shopping and Mail-Order Houses
- Suggested Workers Compensation Code(s): 8800 Mailing or Addressing Company or Letter Service Shop
5961: Catalog and Mail-Order Houses
Division G: Retail Trade | Major Group 59: Miscellaneous Retail | Industry Group 596: Nonstore Retailers
5961 Catalog and Mail-Order Houses: Establishments primarily engaged in the retail sale of products by television, catalog, and mail-order. These establishments do not ordinarily maintain stock for sale on the premises. Separate stores operated by catalog and mail-order houses for the retail sale of products on the premises are classified according to the product sold.
- Book clubs, not publishing
- Books, mail-order-retail
- Catalog (order taking) offices of mail-order houses-retail
- Cheese, mail-order-retail
- Coins, mail-order-retail
- Computer and peripheral equipment, mail-order-retail
- Computer software, mail-order-retail
- Food, mail-order-retail
- Fruit, mail-order-retail
- Jewelry, mail-order-retail
- Magazines, mail-order-retail
- Mail-order houses-retail (not including retail outlets)
- Novelty merchandise, mail-order-retail
- Order taking offices of mail-order houses-retail
- Record clubs, mail-order-retail
- Stamps mail-order-retail
- Television, mail-order (home shopping)-retail
Mail Order Insurance - The Bottom Line
Whatever your situation, choosing an mail order insurance policy that meets your needs is a move in the right direction. Work with a licensed agent with experience in business insurance to find the right level of protection for your specific firm's risks.
Additional Resources For Miscellaneous Insurance
Find informative articles on miscellaneous businesses including the types of commercial insurance they need, costs and other considerations.
- Adult Daycare
- Agriculture, Forestry, Fishing & Hunting
- Bail Agent
- Control of Well
- Electric Utilities
- Employment / Staffing Agency
- Engraving Business
- Facility Support Services
- Mail Order
- Oil And Gas Lease
- Personal Concierge
- Photofinishing Lab
- Portable Sanitation
- Private Water Districts
- Process Server
- RV Parks & Campgrounds
- Security Guard
- Surety Bonds
- Waste Disposal Landfill
- Wedding Planner
- Specialty Accident And Sickness / AD&D
- Specialty Amusement Parks And Rides
- Specialty Auctions And Farmers Markets
- Specialty Business Risks
- Specialty Communication
- Specialty Design
- Specialty Drugs And Alcohol
- Specialty Employee Protection
- Specialty Energy
- Specialty Environmental Risks
- Specialty Firearm And Shooting
- Specialty Hazardous Materials
- Specialty Health Risks
- Specialty Machinery And Tools
- Specialty Merchandise
- Specialty Mobile And Modular Homes
- Specialty Motorcycle Risks
- Specialty Natural Disasters
- Specialty Oil And Chemical
- Specialty Prize Indemnification
- Specialty Programs
- Specialty Railroad
- Specialty Security Risks And Equipment
- Specialty Substandard Risks
- Specialty Travel
- Specialty Weather Related
Businesses need insurance for several reasons. Firstly, insurance protects businesses from potential financial losses that may result from unexpected events, such as accidents, natural disasters, or lawsuits. This financial protection can help businesses recover from unexpected events and continue to operate.
Secondly, business insurance can provide businesses with liability protection. This means that if a business is sued for damages or injuries that occurred on their property or as a result of their products or services, the insurance company will cover the legal costs and damages. Without insurance, businesses may have to pay these costs out of pocket, which can be financially devastating.
Thirdly, commercial insurance can also provide businesses with peace of mind. When businesses have insurance, they can focus on running and growing their business without constantly worrying about potential financial losses or legal issues.
Finally, business insurance can also be a requirement for certain businesses. For example, many businesses that work with the government or large corporations may be required to have certain types of insurance in order to do business with them.
In conclusion, businesses need insurance for financial protection, liability protection, peace of mind, and to meet certain requirements. It is an important aspect of running a successful business and can help ensure the long-term stability and growth of the company.