E-commerce Business Insurance

Most businesses today rely on an element of e-commerce, and with that embrace of technology comes great opportunity for success. E-commerce businesses must contend with their own unique risks, however, and our team of experts can help.

We have the experience and knowledge to create a program that will protect your e-commerce business and help you succeed in a competitive and ever-changing marketplace. Learn more about e-commerce insurance and our coverage below:

What is e-commerce business insurance?

If you run an online business, then you need to be aware of e-commerce insurance. This type of insurance protects your business from any potential losses that may occur as a result of doing business online.

There are several different types of e-commerce insurance, so it’s important to understand what each cover and how it can benefit your business.

Even if your online business is new, we can help.

We provide policies designed specifically to cover e-commerce risks. You can view a list of what we cover here.

Not all e-commerce businesses are the same, and neither are their insurance needs. That’s why it’s important to work with an experienced e-commerce broker like Vanasek Insurance who can listen to your unique story, identify risks particular to your business, and provide the best possible solutions in one comprehensive e-commerce insurance policy.

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What kind of insurance does my e-commerce business need?

There are many different types of risks that can affect online e-commerce businesses.  We consider all aspects of your company when determining the right coverage for you.

Our insurance for e-commerce can include:

• E-commerce Cyber liability insurance can help prevent cyberattacks and lawsuits from customers whose private information is compromised during a security breach.
• E-commerce Business interruption insurance can help a company pay its merchants when a website outage prevents them from making sales.
• E-commerce Crime insurance provides protection from losses associated with theft, embezzlement, or other internal wrongdoing.
• E-commerce Auto insurance can protect you in case of an accident or injury if you use a business-owned vehicle to make deliveries; our commercial auto insurance can specifically address your fleet.
• Business personal property insurance covers equipment that is not used for business purposes, such as computers and other electronic devices at their home offices.

These are just a few examples of how we work with your business to create a specific package of coverage designed for you and your unique business risks.

Do I need insurance for a dropshipping business?

If you are using a third party for your online sales to handle the shipping, handling, and return process, they may ask if you have adequate e-commerce insurance. That’s because many of the liability protections offered by standard business insurance policies do not apply to your e-commerce operations.

We can design an e-commerce program that will provide you and your business with the protection and confidence you need to succeed. You can focus on running and growing your business without worrying about the legal implications of a security breach or product recall – we will handle those issues for you at no cost to you, as part of your policy.

Do I need insurance for an online clothing store?

Online store businesses for small boutique shops and large-scale designer websites alike can benefit from e-commerce insurance. Retailers that choose to sell clothing online need specialized insurance designed to protect the apparel industry, and we understand what it takes to fully protect your business and bring peace of mind to you and your customers.

Is my online retail store covered if I don’t sell physical products?

Yes. E-commerce Insurance is not limited to retailers that sell physical goods, since even an online award or event registration website can suffer a security breach that leads to stolen information and potentially significant legal costs. That’s why e-commerce Insurance includes important coverage for these situations, too.

What does e-commerce business insurance cover?

The most important thing you need to know is that all businesses are different, and your policy should reflect that. For example, if you run an online retail store that deals exclusively in physical goods, your e-commerce insurance should protect against theft and damage to your inventory. If you run a dropshipping business where the majority of your products are digital (e-books, software), you might also need coverage for lost income or web hosting expenses.

A good insurance plan will protect e-commerce businesses against physical (and legal) damages, data breach and theft, business interruptions, product recalls, and copyright or trademark infringement.

Insurance for an e-commerce storefront can also provide protection to your customers by insuring any orders shipped through the US Postal Service (USPS). USPS insurance is often a requirement for dropshipping businesses.

By protecting both the interests of your business and your customers, you can create a more effective business model that stands out from your competitors. We can offer you customized coverage for your e-commerce business, including:

• General Liability
• Internet Business Interruption Coverage
• Umbrella Coverage
• EPLI (Employment Practices Liability Insurance)
• Fiduciary Liability
• Crime
• D&O (Directors and Officers Liability Insurance)
• Cyber Liability Insurance
• Privacy
• Media
• Patent Infringement
• Business Auto Insurance
• Non-Owned Auto Liability
• Non-Owned Automobile Physical Damage Coverage
• Product Liability Insurance

and more!

What does e-commerce business insurance cost?

The cost of an e-commerce storefront’s policy varies depending on many factors including industry, location, and previous claims history. Before shopping for an e-commerce insurance policy, it’s important to understand which factors affect your rates the most and how you can improve them.

Industry

Though the average cost of e-commerce insurance is lower than traditional business insurance, certain high-risk online retailers are required to pay higher premiums. For example, if you operate an online retail store that deals exclusively in electronics or other high-value products, your rates are likely to be more expensive.

Generally speaking, companies that deal with consumer products (jewelry, clothing) will pay more than those selling digital items (software, downloadable music) online.

Location

Your location has a major influence on your rate because different areas have different risks associated with them. If you’re in a rural area with little population density, you may pay less than someone who operates their online storefront in a large city.

Claims History

Claims history is another big factor in determining your e-commerce business insurance rate. Having no claims will lower your cost, but being involved in a lawsuit or paying out millions of dollars after an incident can cause your coverage rates to skyrocket.

Company Size

The size of your company plays a role in how much coverage you need. The more employees you have and the more sales you make, the more likely it is that an incident will occur.

Schedule a Free Consultation:

You can give us a call or schedule a free, no-obligation consultation for your business. Make an appointment with a e-commerce insurance expert at your earliest convenience now.

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Questions? Send us a message!

Need something else? Fill out the form below, and a specialist will get in touch!

If you’re looking to purchase coverage for any other type of asset (such as vehicle, health, or digital asset insurance), we can help in that category too! We work with all kinds of e-commerce businesses and are happy to take you on as a valued customer.

We look forward to hearing from you soon!