Why You Need to Get Insurance for Your Online Business

​Having an online business might give you the advantage of being able to work from your couch and not having to wear uniforms, but that does not mean you won’t have any need for insurance. From faulty products to privacy breaches, here are a few reasons why online businesses still need protection.

To Settle Potential Issues in Projects
While you may not think it could ever apply to you, issues like overspending on a budget, miscommunication with clients, or missed deadlines occur more often than you think. There could be changes that require extra expenses, unexpected personal issues that could prevent you from completing a project or shipping products in time, and many more underlying factors that result in the client losing money from working with you. In this case, you’d need professional liability protection 

To Protect Your Warehouse and Physical Products
Most online businesses these days sell physical goods, and these products are stored in a warehouse in most cases. You’d need property insurance to cover your business from theft, property damage from fires or storms, damages to your inventory, and any other events listed in the coverage. Your lost or damaged products will be insured, as well as any of your equipment that was inside the warehouse, such as carts or delivery trucks.

To Insure You In Case of Data Breaches
Any business that handles customer information or data should get cyber protection if you get hit with a breach. These hijacks not only cost you thousands of dollars in reparations, but your business reputation could also suffer as clients lose trust in your capability to guarantee the safety of their data. Cyber liability insurance will pay for revenue lost due to the interruption to business operations, as well as legal expenses from privacy hacks and investigations.

To Protect You From Product Liability Issues
Did you know that even after you ship out your goods, customers can still file a lawsuit against you if they ever sustain any injury from using your products? This is where liability insurance comes in handy. Whether a customer complains that you gave them a defective product or they get a terrible allergic reaction from using it, it’s worth getting liability insurance to pay for the legal fees that these issues will incur. 

You may think that since you operate your online business at home that your standard home insurance will cover for any loss or damages that might happen, but think again. You will need a more thorough coverage, which is why you should consider getting a Business Owner Policy (BOP). This is sort of like a bundle package that includes all the necessary insurance policies that any business requires, and what’s great is that it’s usually offered at a lower price than if you get these services individually. 

At Arnold, Bruce & Doerfler Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (503) 222-1951 or Click Here to request a free quote.