However, it would be a mistake to think that just because your business doesn’t have its own physical address, that you don’t need some form of commercial insurance. In order to protect your livelihood, you still need to consider the following forms of insurance for your small business:
Inventory insurance. You may keep your inventory piled up in a spare bedroom at home, but that doesn’t mean you don’t need inventory insurance to protect your business. In the event that your inventory is stolen or damaged by a fire, your homeowner’s or renter’s insurance policy may not cover any items related to your business. If such an unfortunate event occurs, inventory insurance will ensure that you receive compensation for lost or damaged items.
Data breach insurance. The same great technology that has made your online business a possibility has also granted opportunities to would-be thieves. If you’re operating a business on the internet, that means you’ll be accepting credit card payments online and possibly storing that information somewhere. You have a responsibility to keep your customer’s information safe, but hackers may be determined to thwart even your best efforts.
Even if you aren’t hacked, thieves can access your customers’ confidential information simply by stealing or finding your lost laptop! Even just a simple mistake could lead to a load of trouble for you. A data breach can lead to lawsuits, court and protect yourself from a very expensive liability problem.
Every small business has different commercial insurance needs. The above suggestions apply to most online businesses, but depending upon your daily business operations, your commercial insurance needs might vary. The best way to assess your needs is to consult with an experienced commercial insurance broker, so that you can rest assured all aspects of your business are protected.