Commercial insurance is much-needed protection for your e-commerce business. Understanding and possessing the right commercial insurance coverage can give your e-commerce business an edge and protect it against unforeseen circumstances. Ecommerce businesses come with many risks, such as product liability issues, cyber risks, and professional liability concerns, which can be mitigated with the right commercial insurance policy.
Of course, there are many different types of commercial insurance available. In order to understand which types of insurance will be most beneficial for your e-commerce business, given below is a basic guide on the different types available and how they can assist you.
1) Liability Insurance: This type of insurance protects your business when a customer purchases a product and then becomes injured. For example, a buyer may suffer a reaction to some of the key components used in manufacturing the product. In such a case, the business would be held responsible for legal costs and payouts, and the liability insurance policy would cover those costs.
2) Property Insurance: Many owners of online stores think that property insurance isn’t essential because their store is online, but in reality, they actually have a warehouse where products are stored before being shipped to the final consumers. Fire or theft can occur anywhere, and it is essential to protect your business against them. Several factors, such as the location of your warehouse and the occupancy, are considered when determining the cost of commercial property insurance. In the long run, having a property insurance policy is well worth the cost as it helps prevent unmitigated losses to physical property.
3) E-commerce Shipping Insurance: Ecommerce shipping insurance is a very important insurance policy required for e-commerce business owners, especially if your business deals with physical rather than digital products. Shipping is essential for any business, and this holds especially true for e-commerce companies. In a situation where there is loss, damage, or theft in the process of shipping the products, the shipping insurance policy protects the company. The insurance policy saves the company from incurring debt by paying for the loss and damages. There are three types of shipping insurance that you can choose from, namely- carrier insurance, self-insurance, and third-party insurance.
How Much Does Commercial Insurance Cost?
Insurance for an e-commerce business is usually priced based on the number of products the company is selling. Also, the higher the risk of those products, the higher the price of the insurance policy.
Do You Need Insurance for Dropshipping?
Dropshipping comes with several risks, such as faulty products, back ordered items, and so on. Therefore, it is highly recommended to have insurance for e-commerce businesses that engage in dropshipping.
At Northeastern Group Ltd, getting an e-commerce business insurance quote is quick and easy. All you need to do is request a quote or schedule an appointment with us today. We would be glad to be of assistance and help you select the best policies for your business. Contact us right away!
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