Businesses have existed for the longest time to serve a variety of purposes, and business owners continue to brainstorm for what better ways to increase the number of people that patronize their businesses.
Technology, apart from providing ease in business, has provided an avenue to secure more customers, even those who are countries away. Having an online presence has saved a lot of cost for business owners that do not have physical stores and the question – do they need insurance policies often gets asked.
Following from experiences as shared on Collected.Reviews, the answer to that is yes, because they are exposed to a peculiar risk, by nature of them being online. Insurance for online businesses work to protect and forestall businesses against losses that may be financial or intellectual.
Below are four types of insurance needed for online businesses:
1. General Liability Insurance:
For damages that occur in the process of getting goods delivered to clients, negligence in the nature of advertisements shared, or bodily injury happening to staff in the course of business, these mishaps that happen in the general operation of business must be covered for.
2. Error and Omissions Insurance:
Incomplete or inadequate work getting done is not uncommon for online businesses, as messages have the tendency to get lost in spam folders, and client jobs that may have been paid for gets forgotten or backlogged. This can lead to claims by clients, which translates to legal fees. It is especially important for service oriented businesses as well as general maintenance companies.
3. Workers Compensation:
While it is not uncommon to have just an individual in charge of an online business, it is much more common to have several people involved in the running of the business. Having an online presence is not limited to having a website. It may very well involve running a number of social media pages, and the running of these pages may not be handled by the actual service providers. The workers need to be covered with this policy, as it would serve as a protection for the employees in the event of missed wages, and other contingencies.
4. Cyber Insurance:
This is one insurance policy online business owners can’t quite ignore if they intend on enjoying the full benefits of what having an online presence would mean to their business. A cyber insurance policy would protect your business pages from cyber-attacks, malware, threat, or the stealing of clients’ information by malicious third parties. It helps to take care of costs that may arise as a result of data breaches.
There are many other types of insurance like property, product liability, data breach, professional liability insurance, amongst many others, which may be more serving for businesses that have a physical store as well as an online store. Whichever insurance type is settled with, a business owner must take care that they are protected against certain losses, rather than considering themselves invisible simply because the majority of their businesses are carried on online.