Insurance. Most small business owners are aware that they may need to take out insurance. However most small business owners are unsure about exactly what insurance products are most suitable for their business. Talking to different insurance brokers and shopping around for the best policy can often be tiring and confusing. For instance, did you know that online stores and businesses require insurance just as much as brick-and-mortar stores do.
What risks do online businesses face?
The owner of an e-commerce store is may be liable for damages for injuries caused by the of their products. This could include allergic reactions to foodstuffs or clothing dyes, malfunctioning objects that caused injury or bodily harm, or defective products that caused injury even when used as directed. Your clients may choose to sue you if something were to go wrong with their product, whether you manufactured the product yourself or not. If you sell goods under your business name, repair the goods that you are selling, or sell goods from an overseas manufacturer, there is a strong likelihood that you will be held responsible for any mishaps caused by these products.
Less obvious risks that online businesses face include the risk of cyber-attack and hacking. Your website could be brought down or held for ransom, or confidential client data may be stolen, such as addresses and credit card details.
Why insurance is definitely worth it
Many traditional insurance brokers are uncomfortable insuring e-commerce businesses as they do not have the appropriate experience or expertise. Fortunately, online insurers such as Public Liability Australia provide comprehensive insurance quotes for online businesses within seconds. Public Liability Australia allows you to compare insurance options from multiple insurers and delivers policies to your inbox within minutes.
Insurance options for online businesses extend well beyond product liability. You might want to consider Business Interruption insurance, Cyber Liability insurance, Goods in Transit insurance, Personal Accident and Illness insurance and even Tax Audit insurance. Professional Indemnity insurance may be relevant to your business if you offer a consulting service.
Take out insurance to keep your business safe. Keep reading to find out additional ways to protect your online business.
– Make sure that your terms and conditions are watertight
– Have strong End User License Agreements for your website with a reputable provider
– A PTY LTD incorporated company will allow you to claim tax benefits and will help you protect your personal assets.
– Protect your intellectual property and register your business nam and logo
Don’t risk the business that you have worked so hard to build. Hard work, financial literacy and careful planning is crucial, and it is always a good idea to have the right insurance in place should the worst happen.