Do you have a small online business or startup? Confused about business insurance? In the following article, we will outline everything you need to know about business insurance for your enterprising company.
Online Sellers and Business Insurance
Many online sellers mistakenly assume that because they don’t have a brick and mortar store, they don’t need business insurance. Unfortunately, this couldn’t be further from the truth. All types of businesses require business insurance. This is true even if you don’t have an official corporation or LLC.
Business insurance is there to protect you if something vital to your business is stolen, damaged, or otherwise compromised. Likewise, it helps protect you from your inevitable liabilities because, yes, even online businesses have liabilities.
Your Liability as an Online Seller
Let’s say that you’ve started a company selling home-made lotions. You’ve gotten all the required inspections and certifications, and you’re sure your products are safe and healthy for your customers.
Even if this is the case, you could still face liability problems when selling online. For example, you may be liable for causing someone to have a bad skin reaction to your lotions. This is true even when you have only good intentions. It is true even when you weren’t the one to manufacture your products. Any goods or services delivered by you can cause a liability issue that can end up turning your world upside down and causing you serious potential losses.
Understanding Business Insurance
Ultimately, the type of business insurance your online business requires will depend on several factors. The liability protection you need will depend on why types of products and/or services you offer, for starters. Do you need to drive for your business (for deliveries, picking up ingredients or resources)? If so, you will need business auto insurance.
Furthermore, if you have any employees, you’ll need to provide coverage for them. Workers compensation insurance is absolutely required in many states.
Finally, even online businesses must operate somewhere. You might not have a brick-and-mortar storefront, but you’ll be storing your goods and/or business materials and technology somewhere, and that will require coverage to protect those assets.
In the end, remember that business insurance is critical, no matter what industry you’re in. It’s best to work with a business insurance provider to narrow down the best options for your online business.