Every business needs great insurance coverage. It protects everyone in a company, giving them some of the assurances they need to safely produce their best work.
Online businesses are no exception to these rules. Though digital firms are going from strength to strength in their offerings, they still need great quality insurance policies to run an effective operation. If you’re hoping to run your own online business, then it’s important to follow this train of thought.
Many types of coverage can benefit your online business. We’ve listed three of the most important ones to consider down below.
Business Owner’s Policy
Insurance coverage can come in different shapes and sizes. There is sometimes more than one to enjoy a great policy or even several.
For example, the Business Owner’s Policy (BOP) is great for online business owners. There are three insurance coverages to benefit from in the policy, including:
- Business income insurance – this can protect you against lost income caused by something you have covered.
- General liability insurance – a legal requirement that protects your online business against injuries, property damage, and even slander and libel.
- Commercial property insurance – protects tools and equipment you use for business premises, as well as the premises itself, whether you own or rent it.
Among their many insurance tips for business, The Hartford recommends a BOP and details the average costs of the insurance. They can also help you find the most affordable quotes on the market today, and you can research business insurance in your state with their resources. Your online business would have a distinct advantage by exploring these resources.
Professional Liability Insurance
You will always do your best to provide good customer service. However, for one reason or another, a customer you have dealt with may believe you’ve dropped the ball.
Professional liability insurance will cover you if somebody tries to sue you for what they interpret as inadequate service. Even if your business is found innocent in the proceedings, legal fees can still be expensive, so having coverage in place is strongly advised.
Online services can be great, but some people are unreasonably distrustful of them at the start. Professional liability insurance doesn’t mean you have anything to hide; it just means you have safeguards in place that will protect your best interests in these situations.
Workers’ Compensation Insurance
Online businesses are not always a one-person show. There may be multiple people working on your behalf who you need to protect.
For example, any delivery drivers on the payroll must be suitably looked after. Many customers want to help them more often, and their employers should feel the same way. Workers’ compensation insurance ticks that box, as it provides employees with benefits if they get ill or injured due to their regular work activities.
Where your online business is based can influence your approach here, as different states have different rules. Where you find the coverage can vary based on your region too, and you may need to consult a state-run or monopolistic fund. Otherwise, regular insurance companies and agencies should be able to help elsewhere.
