Every business carries some risks. But operating an online business doubles the chances because of cyber threats that can cause several consequences aside from financial losses. Thus, aside from ensuring that your online business has online security measures, you can protect it with insurance policies.
Starting an online business seems easy. Several tools are available to create a website — a portal necessary for an online shop. However, one thing that most online business owners miss is the action of protecting their business, like purchasing online small business insurance.
Purchasing small business insurance online
It is already established that all kinds of businesses, including small online companies, must have insurance. Therefore, it will be advantageous to know which types of insurance your business needs to meet the legal requirements. Purchasing insurance policies today is more manageable. Aside from the traditional face-to-face transactions, you can do it via telephone. But most people today, buying insurance online is the fastest way to meet the insurance requirements. However, there are some uncertainties about purchasing insurance policies online. Thus, it is essential to understand the pros and cons before you make your decision.
Advantages:
Convenience. Websites are accessible the entire day, every day. Thus, you can complete your application for an insurance policy at a convenient time. Some insurance companies can likewise provide you with quotes quickly, while some are available only during regular business hours.
Cheaper. Online insurance providers have lower overhead expenses. Therefore, they can offer lower quotes, which is advantageous to buyers, especially the small business owners with limited budgets.
More transparent. When you buy insurance online, the process is more transparent because it is easier for the buyers to compare prices and policy inclusions. Moreover, business owners can request quotes from several insurance companies, evaluate each policy and make better decisions.
More control over the choices. Purchasing insurance policies online gives business owners more control over the process. An agent does not influence them. The consumers’ decision whether to purchase the policy or not depends entirely on themselves.
Disadvantages:
Absence of face-to-face interaction. Buying insurance online may be hard for people who are not used to the lack of personal interaction. Some people make better decisions when everything is explained to them in detail, instead of reading everything.
More suitable for specific requirements. Most online insurance platforms are more favorable to businesses with specific needs. However, for a company with more complex risks and conditions, the consumer might not find it easy to look for the right choices.
Risk of making poor choices. It is not easy for some people to make decisions through written content. Some people prefer verbal explanations. Thus, they can make poor choices because they do not have an agent to explain and guide them to choose the right insurance policies that match their needs.
Small business insurance options
Online business insurance will protect your organization in various situations and help prevent you from paying for expensive claims. You will need insurance protection to ensure that you can recover from financial losses if something happens.
There is no single policy that could provide every type of protection for every risk you face. Therefore, it is more likely that you will need to purchase several policies so that the coverage becomes adequate.
- General liability insurance
This insurance is necessary. It is the most common insurance policy that business owners should purchase. General liability insurance will help you cover the costs for property damage risks and common injuries that can happen during business conduct.
- Professional liability insurance
Professional liability insurance, also called errors and omissions insurance, will protect you if a customer or another third party accuses you of making a mistake that drastically affects their business. For example, you miss the project deadline, and the client claims that they suffered financial loss because of it. The policy will help cover the legal defense costs and the settlement the court decides.
- Commercial property insurance
As an online shop, you maintain a particular volume of inventory somewhere. Commercial property insurance will protect the products you sell. Likewise, it will help you with replacement or repair costs should the properties be damaged or stolen due to an event covered in the insurance policy. Furthermore, commercial property insurance will replace your income if you need to halt your operations in the meantime because of an event, such as wind or a firestorm.
- Workers’ compensation insurance
In most U.S. states, a business owner should have workers’ compensation insurance if the organization employs one or more employees. The insurance will pay the lost wages and medical bills if an employee suffers an illness or injury while at work.
- Commercial auto insurance
Whether you use your vehicle or have a company car for your business, commercial auto insurance will give you more protection. For example, you use your vehicle (personal or company) to deliver a customer’s order. Along the way, you had an accident. The commercial auto insurance will cover medical expenses, property damage, towing, collision repairs, rental reimbursement, and underinsured motorists. The coverage is more comprehensive compared to personal auto insurance.
- Cyber liability insurance
Since your business is online, the risk of a cyberattack will always be there. Cyber liability insurance is vital to your business as protection for data breaches and cybercrimes. As an online business, you will be storing your customers’ personal information, from names, addresses, and contact information. You will also store customers’ financial information. These types of information are the target of cyber actors. Cyber liability insurance will help pay the costs related to a data breach, covering the legal fees, notification of customers, public relations, and credit monitoring.
- Product liability insurance
This type of liability insurance is suitable for online retailers. It will protect your business if the product you sell hurts a customer or damage their property. In addition, the insurance will cover your defense costs should there be a lawsuit, injury and medical expenses, and the cost of judgment or settlement.
Make sure that your small online business is protected. Find an insurance provider with an online platform so you can now purchase the mandatory insurance policies online. Consider the other business insurance that will cover you and your business if something goes wrong.
