What Type of Insurance Does an Online Retailer Need?
Online retailers face risks that other businesses may not have to deal with. From data breaches and stolen inventory to damaged products in transit, getting the right type ofbusiness insurance is key to the success of your online retail buisness. Some common types of insurance that can help online businesses include:
- General liability insurance
- Commercial auto insurance
- Workers’ compensation insurance
- Commercial property insurance
E-commerce business insurance can help protect your company from claims like:
- Bodily injury
- Property damage
- Loss of personally identifiable information
When it comes to getting the best e-commerce insurance, it’s important that you partner with an experienced insurance company and get the coverage your business needs.
Who Needs E-Commerce Business Insurance?
-
Stores that sell products online
- Virtual marketplaces
- Brick-and-mortar stores with an online presence
Business Owner’s Policy for E-Commerce Businesses
Many businesses get aBusiness Owner’s Policy (BOP) as a starting point for e-commerce business insurance. It combines three types of insurance coverage that business owners need:
General liability insuranceto help cover claims that your e-commerce business caused bodily injury or property damage to someone else.
Commercial property insuranceprotects your online business’ owned or rented building, tools and equipment. This can include your:
- Computers
- Inventory
- Warehouses
Business income insuranceto help replace lost income if you can’t operate because of covered property damage.
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Covering Your E-Commerce Business Operations
With an online presence, your business faces unique risks that can impact your operations. E-commerce business insurance helps protect your business if the unexpected happens.
42% of small business owners said they don’t have a plan to respond to a cyberattack.1
Damaged Property
“When my employee and I went to visit a vendor, I accidentally knocked over a box of supplies and broke everything inside of it.”
General liability insurancecan help cover costs related to claims that your business caused property damage or injury to others.
Stolen Information
“The online platform I use for my retail business got hacked. The hackers stole my customers’ payment and contact information.”
Data breach insurancecan help your e-commerce business respond to breaches if personally identifiable information (PII) gets lost or stolen. It can help cover your costs to notify impacted customers and offer credit monitoring services. Some insurance companies call this cyber liability insurance.
Protecting Your E-Commerce Business Property
We know expensive equipment and inventory is part of running a successful e-commerce business property. Lost or damaged property can make it hard to operate. So, it’s important to have e-commerce business insurance to protect it.
Large trucks and buses were involved in 132,000 crashes that caused injuries in 2019.2
Car Accident
“One of our delivery drivers lost control of our company truck and crashed into another car while driving to a customer’s home.”
Commercial auto insurancecan help protect your employees on the road if they drive company-owned vehicles for business.
Damaged Goods
“We were expecting a shipment of supplies for our business, but the truck got into an accident and couldn’t make the delivery. We had to shut down our online store until we got another shipment delivered.”
Transit business income insurance helps cover losses due to an interruption because of damage to property in transit.
Taking Care of Your E-Commerce Team
Your employees play a key role in your e-commerce business’ success. They help run your online business and manage your inventory. If they get hurt or sick from their job, they could miss work while recovering. With the right type of e-commerce insurance, you can help them return to work.
Carpal tunnel syndrome is one of the top 10 claims of preventable absence.3
Broken Foot
“My employee was grabbing a product off of a high shelf when she fell and broke her foot.”
Workers’ compensation insurancegives your employees benefits to help them recover from a work-related injury or illness.
Customer Lawsuit
“As a customer was picking up their online order at our warehouse, they tripped over a box and sprained their wrist. They ended up suing our business for medical costs.”
General liability insurancecan help cover another person’s medical bills if they get hurt at your business.
Get the Best E-Commerce Insurance for Your Business
We know not every e-commerce business is the same. Our specialists are here to help you get the coverage that meets your risk management needs. Whether you have questions about insurance for e-commerce businesses or need help with a claim, we’ve got your back.
Discover related professions we insure:
- Cosmetic Product Insurance
- Flower Shop Insurance
- Business Insurance for Retailers
- Insurance for Wholesale Distributor
E-Commerce Insurance Especially Made for Your Business
Get the protection you need to help keep your small business running successfully.
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More Answers to Frequently Asked Business Insurance Questions
What Does Business Insurance Cover?
How to Calculate Business Income for Insurance
Why Do I Need Business Insurance?
The Hartford shall not be liable for any damages in connection with the use of any information provided on this page. Please consult with your insurance agent/broker or insurance company to determine specific coverage needs as this information is intended to be educational in nature. The information contained on this page should not be construed as specific legal, HR, financial, or insurance advice and is not a guarantee of coverage. In the event of a loss or claim, coverage determinations will be subject to the policy language, and any potential claim payment will be determined following a claim investigation. Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. listed in theLegal Notice. The Hartford Financial Services Group, Inc., (NYSE: HIG) operates through its subsidiaries under the brand name, The Hartford, and is headquartered in Hartford, CT. For additional details, please read The Hartford’s Legal Notice. * Customer reviews are collected and tabulated by The Hartford and not representative of all customers.
