Do you know which type of insurance you want as an online business owner? Here is a list of types of top 5 insurances recommended for an internet business!
1) Cyber Liability
An online businessman should not only protect his business but also the information of his customers. It doesn’t matter that the information is leaked or stolen; having customer’s information get out is not at all good for your business. Do you know that Cyber Liability Insurance helps you to protect your business when a data breach occurs?
Recovering leaked information is both costly as well as time-consuming.
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Policies differ from companies to companies. Cyber Liability Insurance protects its customers in the following ways:
- Business interruption costs
- Legal fees
- Computer restoration
- Ransomware expenses
- Public relations help
Online threats & hackers are increasing day by day. In this situation, it is very important to focus smartly on security measures & invest in cyber liability insurance for sure.
2) Commercial General Liability
One of the comprehensive insurance, Commercial General Liability covers for property damage or injuries that happen inside the business premises. CGL is a must for online businessmen as it also offers coverage when someone gets injured while selling a product.
While selling products on Amazon, they ask some companies to acquire a commercial general liability, mostly on the basis of how much they are selling on their platform.
When you sell various products on Amazon or any other e-commerce platforms, it is always appropriate to spend some time to research their needs to make sure that you don’t lack any of the coverage.
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3) Employment Practices Liability
When your business expands & you start adding more staff, you will primarily need to begin focusing more on the protection of yourself as well as your business. Who doesn’t want a safe workspace? But the harsh reality is that employees will definitely face many issues. It doesn’t matter their issues are valid or not, their concerns should be taken seriously and should be protected at any cost.
Businesses get the following coverage through Employment Practices Liability:
- Wrongful termination
- Discrimination
- Harassment
- Negligent evaluation
- Invasion of privacy
- Miscellaneous employment-related issues
- Mismanagement of employee benefits
Employment Practices Liability policy covers the business owner and also the high-rank staff such as directors or managers. Some of the policies do cover employees as well.
Before purchasing a policy, research well to know what is covered under the policy & also consider your needs. While hiring more employees to your company, it is always good to set company policies on a point such as an employee handbook so that everyone gets clarity about rules & expectations
4) Workers Compensation
Do you consider your employees as a vital part of your company? If yes, you should definitely purchase the Workers Compensation Insurance Policy. None of us can ever predict an accident, hence, as a business owner, you should be prepared for such situations.
This policy provides coverage for illness & accidents of employees that occur during their working period. If any employee requires time to recover, it can also be covered under this policy. Workers Compensation also benefits when an employee proceeds with legal actions for any job-related injury. Every legal spending on lawsuits can be covered under Workers Compensation.
Certainly, it is very important to promote and provide a safe workspace & it is must to be covered by Workers Compensation when accidents happen.
Also Read: Difference between Annual Compensation & Annual Salary
5) Seller Suspension Insurance
If you are an online business owner selling products on platforms such as Amazon, you should definitely purchase Seller Suspension Insurance. Amazon is well known for its customers and as a seller, you fail to satisfy the customers, it may shut down your account.
People always find difficult to keep up with Amazon’s policies as they constantly change. Most accounts just get deleted without any reason.
Yes, you can complain about the suspension but absence of your business for a week will affect your business a lot.
Seller Suspension Insurance helps in these types of situations by providing financial backing as well as resources. Without insurance, you will require to employ a specialist in order to get your account back. But there is no need to hire one if you have Seller Suspension Insurance. If you rely on Amazon for your business, this insurance is completely for you.