Why do online businesses need insurance?

If you had a physical business with a shopfront you probably wouldn’t hesitate or think twice about getting insurance to cover your assets and customers. When you have an online business the potential risks that can occur are less obvious compared to that of a physical shop.

So what are some of the insurance risks of an online store?

  • Product Risk – A customer could be caused harm or even death as a result of using your product.
  • Privacy/data breach – if the privacy of your customers or website visitors is compromised you could get sued.
  • Theft or damaged goods – whether the goods are stored from your home business, personal storage or otherwise, you may find yourself at a loss if you don’t insure your products and they get stolen or vandalised.
  • Natural disasters – could cause damage to your goods or property you operate from.

These are some examples that could happen to an online business if you’re underinsured (or worse don’t have any insurance at all). Now that you know about the ways you be affected without the right insurance in place, there are also very different types of insurance solutions that cover different elements of your online business. Your insurance solution could include product liability insurance, perhaps machinery breakdown or deterioration of stock or, more often a combination of a few different types of online business insurances.

“Online business insurance solutions aren’t just for online shops – it can also relate to online service businesses, such as virtual assistants! For these types of online businesses, solutions like business interruption and professional indemnity might be very important to consider,” said Allsure Insurance Director Melissa Donaldson.

Hopefully this blog has given you a good overview to start to understand online business insurance risks better, but you should speak directly to a professional insurance broker to figure out the best options for your business and your specific risks.

Talking to an insurance broker that specialises in online business insurance solutions will give you peace of mind that you’ve covered your bases, and nothing has gotten missed. Not all online businesses are alike, and neither are their insurance covers – your insurance is specific to what you do and it’s always best to speak to a professional first to get advice before buying your insurance solution.

Call the friendly team at Allsure Insurance today for an obligation-free quote, we’d love to learn more about your business! (03) 5278 6808