Protect Your Ecommerce Business With Insurance
If you are an online retailer in Ontario, ecommerce business insurance helps protect you legally and financially.
Note that if you’re operating your ebusiness at home, you need an ecommerce insurance package to protect you against risks tied to operating the business out of your home. If your inventory is stored in your home or garage, your homeowner’s insurance does not cover it.
Ask your Western business insurance expert about what ecommerce insurance fits your Ontario-based online business.
We understand business. We’ve got the knowledge to get your online business the right ecommerce business insurance package customized to your unique needs, whether you’re in the Greater Toronto Area, Aurora, Kitchener, Windsor, Pembroke, Parry Sound or elsewhere on digital main street in Ontario.
What kind of insurance does my Ontario ecommerce business need?
Ecommerce insurance can be tailored to Amazon sellers. Amazon requires some third-party sellers to provide proof that they have commercial general liability insurance with at least $1 million in coverage.
Policies can also be tailored to online platforms such as Etsy, eBay, Shopify, online retail stores, subscription companies, wholesale companies and manufacturers.
Here are important coverages to consider:
1. Commercial General Liability (CGL) Insurance: This type of insurance considered essential for ecommerce businesses because it will help protect you and any employees against on-the-job risks, claims, and injuries that you could face.
For example, a delivery person trips over a step and twists their ankle and then sues you for bodily harm. CGL will typically cover legal expenses and medical fees, regardless of the outcome of the lawsuit.
Commercial General Liability Insurance also helps protect you against claims of slander, libel, or copyright infringement made against your ecommerce business.
At least $1 million in coverage is recommended for an ecommerce business.
Ask your Western business insurance expert to explain the benefits of CGL for your Ontario ecommerce business.
2. Product liability: It’s similar to Commercial General Liability Insurance, but it takes into account defective design, product flaws, hidden defects, and inadequate instructions for product use.
Product liability would cover such things as a legal fees, settlements and medical bills. Without this type of coverage, you would pay these expenses out of your own pocket.
3. Commercial Property Insurance: Commercial Property Insurance protects you if you store your stock at your home or in a storage location. Commercial Property Insurance protects your stock and the physical location from insured risks such as a fire, theft, or flood. Your homeowner’s insurance doesn’t cover your products.
4. Transit Insurance: Transit insurance is also known as inland marine insurance. It protects your products when they are being transported on land via truck or train stored at a site other than your main business location. It also covers specialized high-value assets that property insurance typically doesn’t cover.
It helps replace covered property if the damage is caused by theft, fire, water, wind, or hail. Some transit insurance policies cover loss due to accidents or mishandling. It does not cover goods damaged before shipment.
Transit insurance becomes increasingly important to your ecommerce business as it grows, and you ship more products to customers.
Ask your Western business expert for all the details about transit insurance and how it could benefit your business.
5. Shipping insurance: It helps protect your Ontario ecommerce business from a variety of incidents that can happen between the time you ship your product until your customer receives it. If goods arrive damaged, for example, you will be reimbursed the declared value of the product.
Shipping insurance is offered by couriers and third-party vendors to ecommerce business owners.
6. Cyber Insurance: This type of coverage helps you deal with a cyberattack, data breach, phishing, or ransomware attack. This type of insurance can help recover stolen data and repair damaged computers and networks and it can help restore stolen customer and employee data. Depending on the size of the breach and the information that was taken, the customers who are affected can sue your ecommerce business for damages.
7. Business Interruption Insurance: Business interruption insurance is an additional property insurance coverage that covers loss of income if your ecommerce business suffers a disaster, and your business premises or facility need to be temporarily closed. This type of coverage can mean the difference between reopening your online business and going out of business.
8. Commercial Auto Insurance: If you have a business car, truck, or van that you use for your ecommerce business, it needs commercial coverage as part of your ecommerce insurance package. Your personal car or truck insurance usually won’t cover your ecommerce business.
How much does ecommerce insurance cost?
Every ecommerce business is different. No one policy fits every ecommerce business at the same price. Factors include what product you are selling and where you are shipping to. Your Western business insurance expert will ask you details about your ecommerce business.
An ecommerce insurance package is essential for an online business. Your Western insurance expert will go over in detail what kind of coverage your Ontario ecommerce business needs.
Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get your Ontario ecommerce business the right insurance package. Our experts are available now to help you navigate the business insurance journey to protect your ecommerce business.
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