Why is Now a Good Time to Get eCommerce Insurance for Your Business
Nov 21, 2022
You have come a long way from when you first started thinking about starting an eCommerce business. Hours of research spent learning about which shopping platform you would like to start on, the types of products you are looking to sell and the online marketing initiatives behind the scenes to drive sales. However, there is one last thing you have been putting off: eCommerce insurance.
Look, we get it, insurance may not be the funnest thing to purchase, however, as an eCommerce business, insurance is one of the main components you need to have in order to operate your store. If you plan on selling on Amazon, they recently announced that eCommerce sellers who generate revenue of $10,000 in the span of 1 month require Commercial General Liability insurance (CGL). If your business interacts with the public in most any way (yes, even virtually), CGL business insurance will help protect your business from claims. While we tend to think of CGL as just covering slip and falls on a premises, the truth is that it can do so much more.
Not only is CGL important for your business, this time of year between November to December increases the rate of issues you may experience during the holiday shopping season for yourself and your customers. With oncoming major shopping days like Black Friday and Cyber Monday, make sure to follow our insurance tips on a safe, secure holiday shopping season below:
Secure online transactions and your eCommerce business from cyber attacks
Foxquilt offers Cyber business insurance that is beneficial from the day that that business first goes online. While a great security infrastructure will help keep a business safe, it may not protect against every attack, especially as criminals become more sophisticated. Cyber insurance can make sure that even if these attacks happen, they are not detrimental to the health and future of the business.
Commercial General Liability is great to start, but Product Liability Insurance protects you in the long run
While any business should carry commercial general liability (“CGL”) as the foundation of their policy, eCommerce general liability insurance is especially important as marketplaces and landlords are requiring all businesses to carry insurance regardless of where they work. If your business sells a product, product liability insurance for eCommerce will help protect your business in case someone is accidentally injured through its use.
Products purchased online should always reflect what it can do in real life–especially when it is a gift!
In the eCommerce world you need to make assertions to your clients that your product or service does what it says it will. If the product you manufactured is defective, or your service does not deliver as promised, errors and omissions insurance (E&O) ensures your business won’t be left personally on the hook.
Make sure your product is delivered safe and sound
Many eCommerce businesses do not store goods themselves, but rely on third-party warehouses and shippers for order fulfillment. Cargo insurance should be considered for eCommerce businesses as it protects these shipments from damage and theft, while ensuring that your business is able to continue to fulfill customer needs.
Ultimately, your steps taken to ensure your eCommerce insurance will protect your brand and make it a trustworthy place to shop. Even when you think filing claim reports may seem daunting, Foxquilt makes it easier through our virtual assistance so you can reach us any time of the day (or night!). While you prepare and organize your eCommerce business for another great shopping season, let our eCommerce insurance products keep your mind at ease. Get started today!
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