Seller Success

Why is Insurance for E-commerce Organizations Important?

Think about the risks involved with e-commerce compared to traditional retail. Of course there are claims online retailers have to deal with that would rarely be faced by your average walk-in store, but some things never change.

Both e-commerce and brick-and-mortar retailers have to bear the risk of being a link in the supply chain of a product that could hurt somebody. Both have employees who need to be protected from injury and management who needs to be protected from shareholder lawsuits. But bodily injury claims like slip-and-falls are less likely in e-commerce. Alternatively, the chance of someone stealing customers’ sensitive information is a great deal higher for online stores.

The importance of computers and system integrity for e-commerce companies cannot be overstated, so let’s start with some of the risks insurance addresses. The theft of customers’ personal info — or worse yet, their financial info — is a looming threat for online retailers. Bad actors can wreak havoc by stealing data, encrypting your data and extorting you, or shutting you down with a DDoS attack. These challenges can cause lasting damage to a company who isn’t prepared to face them.

General Liability Insurance

is a type of policy that protects your
business in claims of:

Bodily Injury incurred on your commercial premises or when using your product.

• Damage to the plaintiff's property.

• Damage caused by slander, libel, copyright infringement, and more

What is General Liability Insurance for?

No matter the size of your business — from tiny startups to mid-markets to massive corporations — plenty of risks pummel each industry. Traditional “slip-and-fall” claims are only the tip of the iceberg in terms of the extensive vulnerabilities you might face. Consider what happens when an employee bumps a client’s laptop off the desk’s edge accidentally, sending the device to its demise. Likewise, who pays for the medical expenses of a vendor who sustains injuries after falling during their weekly delivery to your facility?

Small businesses

Nearly 40% of small business owners will likely experience a general liability claim in the next decade.

Property renters

Many General liability claims involve accidents that occur on the property, such as scratching the hard-wood floor of a rented office space.

Companies with visiting customers

Customers are injured regularly after slipping and falling while visiting businesses — it’s the notorious “slip-and-fall” claim scenario.

Why you need General Liability Insurance

These everyday situations, and many more, require the broad coverage of general liability insurance. This policy protects companies against third-party lawsuits involving bodily injury and personal or property damage. Also, think about skyrocketing defense costs and advertising injuries that could cause financial hemorrhaging to your hard-earned assets. General liability insurance safeguards your business from an array of exposures. More importantly, this coverage is the ultimate foundation of a robust risk management plan.

Reasons for getting General Liability Insurance

Protects your company against the cost of third-party claims.

Protects your customer’s property, whether bodily or personal.

Protects your company’s assets against legal obligations.

Personal injury

General Liability responds to personal injury suits, such as a competitor suing you for slander after you launched a new marketing campaign.

Third-party bodily injury

If you are visiting a client’s space and accidentally spill your hot vanilla latte in your client’s lap, causing burns that require medical attention, this policy would respond.

Insured contract

A company indemnifies their landlord in the lease agreement. The company modifies the space and installs new water piping. During a cold winter night, the pipes rupture and fill the common areas of the building, shorting out the elevator and causing $100,000 in damage. The landlord requires payment from the company under the indemnity agreement in their lease to fix the damages caused by the company’s installation.

Types of Ecommerce Companies that need insurance

Types of Ecommerce Companies that need insurance

How can we help? We can recommend you reliable insurance companies to get you insured.

Please contact us for more information.

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