3 Things to Consider When Insuring Your E-Commerce Business


Online business’ have begun to flourish in the recent years due to the accessibility of the internet for people in society increasing. It’s become easier to showcase your business and its unique service and/or product solving skill. In all the excited of your business building, you may have put yourself at a bit of a risk. What kind of risks, you may ask? Risks of your online business becoming victim to hacking, data breaching, or even internal incidents. What can you do as a business owner to help protect your and your business from potential online attacks?  

Data Breach Insurance 

Getting insurance for your business is a normal practice due to having a physical building. Online, your business may not have a true physical entity. When operating through the internet you will handle and store sensitive or confidential information relating to your customers. If this information is ever lost or taken through an external breach, there may be trouble on the horizon. Adding data breach insurance or cyber liability insurance to your policy can help you in the event this unexpectedly happens. These coverages will help your business handle coverages when you have to notify your impacted consumers, offer credit monitoring services, and it can improve your business’ reputation. 

Liability Coverages 

We previously mentioned cyber liability and while it is important to have on your policy when you own and operate an online business, it isn’t the only liability insurance that you should have. There are three other liabilities that would be beneficial to have added onto your policy in relation to your online business: 

  • General Liability – covers you and your company for claims that in vole bodily injuries and property damage that have resulted from your products, services, or operation.  
  • Product Liability – covers in the event that your product arrived to the customer defective.  
  • Professional Liability – can assist in covering claims related to negligence, misrepresentation and inaccurate advice. Can help cover violations of good faith and fair dealing. In the event of a lawsuit, this coverage can help cover the legal expenses. 

Additional Steps 

If you’ve added these insurance measures to your business’ policy, you should have a good array of coverages in the event the unexpected happens. In order to take more precautions to protect your business, we recommend doing the following steps: 

  • Implement SSL Certificates – doing this will add an additional layer of security protection to your website. Protecting your website from the moment a customer enters to the moment they leave. 
  • 2 Factor Authorization – enabling 2 factor authorizations can help add another level of security to those who are accessing your website so people with bad intentions are less likely to get through.   
  • Properly Train Your Employees – when hiring new employees, make sure you have a training process that thoroughly explains how to correctly use the online business accounts without risking any potential threats getting in. 

Interested in adding more commercial business policies to your coverages? Reach out to your local agent to learn more.