If you’re starting or have an online business, there are several types of insurance coverages you’ll want to consider. We’ve provided insight on key questions to contemplate.
In Canada, 80% of Canadians shopped online in the past year and by 2023, online spending could reach $108 billion. Based on these statistics, we can assume that many people enjoy doing business online.
E-commerce can present several challenges and expose business owners to many liabilities. Undoubtedly, having the proper insurance coverage is crucial for online business owners. Here are questions to consider and discuss with your insurance broker to ensure you have proper insurance coverage for your online business.
Insurance Coverage Questions for Your Online Business
1 | How is client information being stored?
Inevitably you’ll have to store customer information, whether it be for payment processing purposes and/or delivery. This data must be kept private and secure. If you are storing it in “the cloud” or on a server you may need to consider cyber insurance.
2 | Is your product being exported?
Insurance companies may not insure international sales of certain goods. It’s important to speak with your insurance broker for clarifications and insight on this.
3 | What are you selling?
This may be the most straightforward and logical question. What you’re selling has a lot to do with how much and the type of insurance you need. If you’re selling T-shirts your insurance needs are different than if you’re selling table saws.
4 | What kind of coverage do you already have?
If you have general commercial liability insurance or business interruption insurance, you may need some additional supplemental coverage. Your Youngs Insurance broker can provide you with expert advice, so you have the best insurance coverage to protect your online business.
We hope this provides some clarity on what goes into determining what insurance you’ll need for your online business. If you have any additional questions regarding commercial insurance or coverages, contact your Youngs Insurance broker who would be happy to assist you.
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