According to Business Insider, e‑commerce will make up 17% of all U.S. retail sales by the year 2022. As online sales grow, so do the risks and exposures that e‑commerce companies face, including data breaches, fraud, privacy issues, and product liability cases. Because these online businesses have a different risk profile than traditional brick-and-mortar retailers, it’s important to secure business insurance policies that cover costly claims unique to e‑commerce companies.
At Doeren Mayhew Insurance Group, we customize business insurance solutions to safeguard your financial assets so you can focus on driving online sales growth. We help our clients navigate the complexities of choosing the right commercial policies to build a solid coverage foundation.
We specialize in guiding e‑commerce store owners through selecting a policy that ensures long-term financial health — and peace of mind. Read below to learn about the different types of business insurance that are especially useful for e‑commerce companies, and then talk to your trusted insurance agent about your needs.
Common Types of E‑Commerce Business Insurance
Cyber Insurance
E‑commerce companies rely on the exchange of sensitive information to conduct business. In order to prevent costly losses, cyber insurance protects businesses by covering things such as restoring electronic data, ransomware payments, restoring brand reputation, paying fines, and income losses or extra expenses incurred due to business interruptions.
Cargo Insurance
There are different types of cargo, or freight, insurance that supplement the coverage provided by standard carrier liability coverage for businesses that ship goods. Cargo insurance is typically available under common classifications such as land cargo or marine cargo. This coverage protects e‑commerce companies against costs related to damage, loss, or theft of all items while in transit.
General Liability Insurance
Even if you primarily sell your products and services online, you’re still a business owner which means your company is exposed to a diverse range of liabilities. General liability insurance typically covers claims associated with property damage, product liability, personal and advertising injury, third-party bodily injury, and damage to rented space — as they relate to business activities.
Product Liability Insurance
No matter what you sell in your e‑commerce business, you need to protect your company against potential product liability claims. From defective products to inaccurate or incomplete labeling, common product liability issues often arise when you are part of a larger chain of distribution. Product liability insurance typically covers manufacturing and design defects, as well as claims that warnings were not adequately provided to consumers.
Technology Errors & Omissions Insurance
This type of professional liability insurance protects against a range of tech-enabled liability risks that include product glitches, service interruptions, data management, and security risks. Common technology errors and omissions (E&O) insurance claims are breach of contract, copyright infringement, and negligence. E&O insurance supplements coverage provided by cyber insurance policy by protecting your business against any claims that are directly related to technology.
If you want to grow your e‑commerce business, it’s essential that you secure a collection of commercial insurance policies to protect you and your business from costly claims. Mitigate risks while achieving peace of mind with customized insurance coverage that fits your business’ needs. Contact us to schedule an in-depth consultation to discuss how we can help safeguard your e‑commerce company’s assets today.