American Eagle Insurance Blog
In today's digital landscape, e-commerce businesses are made more vulnerable to risks like cybersecurity issues and intellectual property infringement. Additionally, these businesses also face common risk factors that every other type of business experiences.
With this, here are some of the most important insurance coverages all e-commerce businesses should have. This way, common and industry-specific factors get covered.
General Liability Insurance
General liability insurance is known as the foundation of any risk management effort. This type of insurance covers third-party bodily injury and property destruction claims. For example, if you plan to lease an office, you will need this coverage. If someone visits your office and gets injured, your legal obligations are covered by this type of insurance.
E-commerce businesses and other online-first companies are the most vulnerable to cyber issues. Since these businesses process transactions and collect customer information, e-commerce businesses are the prime target of cybercriminals.
Cyber liability insurance is crucial due to the potential lawsuits, penalties, and investigation expenses that arise from data breaches and cyber-attacks.
Product Liability Insurance
Another insurance coverage that e-commerce businesses need is product liability insurance. It's essential for e-commerce businesses because it's at the center of their operations.
Any product that e-commerce stores sell pose risk for a lawsuit if a customer gets injured while using the product. In addition, manufacturing issues, design flaws, and improper instructions also generate liability for any e-commerce business.
Technology Errors & Omissions Insurance
Another important coverage for e-commerce businesses is technology errors and omissions insurance, along with product and cyber liability coverage. Most brokers regard these as the holy grail of e-commerce coverage because these protect e-commerce businesses from industry-specific risks.
Specifically, this type of coverage protects e-commerce businesses against claims resulting from your product's failure to perform its intended use. Errors related to your product also make you more vulnerable to claims, making this coverage even more important.
Like any other business, e-commerce businesses need coverage for the different risks they face in the industry. However, the e-commerce landscape has generated more risks for these businesses, which should not be downplayed. These insurance recommendations are an important consideration when building an e-commerce business.
At American Eagle Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (225) 667-7377. Get your free quote today by CLICKING HERE. Coverage discussed in this article is not guaranteed. Please contact our agents today to ensure that your needs are being met and learn more about your policy. We are happy to help!