Online stores are quickly becoming the norm for many businesses, with the internet providing a means of getting your products in front of customers quickly and easily. Whether you own an established business taking your first steps into e-commerce or a start-up that you run from home, you will have invested your time and money into your online store and should be looking to safeguard it.
Stock Cover
As an online retailer, your stock is your most valuable investment. Depending on the size of your business, you might keep all your stock on-site or even in your home. Should your stock be damaged or stolen, you will be out of pocket and it’s unlikely that the items will be protected by your contents insurance. Stock cover will provide you with financial assistance so you re-purchase your stock.
Working from Home
If you are running your business from home, then your current content and home insurance policies might not cover you.
Make sure you get in touch with your insurance provider and discuss your options with them. If something should happen, and it is discovered you didn’t declare that you work from home, your policy might be declared invalid.
Employers’ Liability Insurance
If your business has employees, then you are legally required to have Employer’s Liability insurance.
Product Liability Insurance
Often viewed as the backbone of any good Online Store policy, Product Liability is an important protection to have in place. No matter the kind of product you sell, should the item cause damage or injury, then you could potentially be liable.
For example, if you are a chocolatier who sells your products online. If someones blames your product for causing food poisoning, then you could be liable to pay compensation.
Even if you didn’t manufacture the product yourself, you could still be liable if the product bears the name of the business; if you have repaired, changed or refurbished an item, or if the original manufacturer has gone out of business or cannot be found. Online businesses are more susceptible to this type of risk, as the chain between you and the original manufacturer can be far longer than a brick and mortar business.
It is vital that you specify that you run an online business when purchasing insurance. For example, if you tell them you own a bookstore, as opposed to an online bookstore, you might not be adequately covered.
Some insurance providers offer an E-Commerce or Online Store insurance policy that will combine these covers into one policy.
