Starting and running an online business may seem like a breeze, especially if you are a sole owner. However, just like any other business, you need some form of protection to keep your operations secure.
Even though no one hopes for catastrophes or accidents, they can happen at any time, putting your business and livelihood at risk. Therefore, it's important to have a good insurance policy that covers all the risks specific to your business. Here are some business insurance options available for online entrepreneurs.
Workers' Compensation Insurance
If you have employees working for you, it is mandatory to have workers' compensation insurance, depending on your state's laws. This policy covers expenses such as medical bills and lost wages when employees suffer injuries or illnesses in the workplace.
As an online business, you may not have a physical office, but you may have remote workers who work from different locations. They will be covered by workers' compensation insurance in case of any injury or illness that is linked to their work. As such, you need to ensure that each employee is covered under workers' compensation insurance.
Cyber Liability Insurance
Cyber liability insurance is a policy that covers potential losses from data breaches and cyber-attacks. Data breaches can lead to significant losses in terms of customer data, financial information, or intellectual property. Other cyber-attacks may involve malware, ransomware, and phishing.
Malware and ransomware can disable computer systems, leading to downtime that may disrupt business operations. Phishing can lead to financial losses through fraudulent activities when employees fall prey to cyber criminals.
These digital attacks can disrupt your online business and compromise your customer's personal and financial information, resulting in high costs or legal fees if you are sued.
Cyber liability insurance can help protect your business from such losses by covering the costs of investigating, responding, and repairing any digital damage resulting from a data breach. It can also cover public relations fees where necessary.
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, is important for businesses that offer services such as consulting or advice. It protects your business from claims resulting from negligent acts, errors, or omissions in the delivery of services.
For example, if you provide digital marketing services and you make a mistake in executing your service, resulting in financial losses, professional liability insurance can cover the expenses incurred by the customer. It can also help with legal costs when faced with lawsuits or other negligence claims.
For more information about business insurance coverage, contact a local company.