3 Types of Insurance Your Online Business Needs

​It's not surprising to see businesses moving their operations online, or entrepreneurs embarking on their own online business. After all, the numbers are compelling. Surveys have shown that 69% of Americans have shopped online, and 43% have admitted to buying online regularly.

However, just because your business is online doesn't mean you shouldn't invest in a good insurance policy. Having an online store comes with distinct challenges that require a different type of coverage. Here are three types of insurance your online business needs: 

Commercial General Liability (CGL) Insurance
A company can be sued for liabilities, like completed operations and product liability, and this general insurance policy will safeguard them from that. 

• Completed Operations: This will cover any legal expenses that might crop up if a client sues for damages after the expirations of a warranty. 
• Product Liability: A customer that was injured by a product they bought from you online can sue you. This insurance will cover the cost of the lawsuit. 

Cyber Liability Insurance 
Data breaches and cyber crimes are becoming significant threats to any business. However, human error can also result in a cyber attack. Mistakes like a misfiled document or a misplaced laptop can put your company at risk and expose important client or employee information. You could face a significant lawsuit if there's a breach on a project you're working on for a client, and their data gets stolen. 

Recovering from data breaches is challenging and expensive. Cyber liability insurance can protect you from everything, from ransomware to business interruption expenses and computer restoration. You can even select a policy that also assists with reputation management to safeguard your company's image from false or harmful allegations. 

Employment Practices Liability (EPLI)
Your employees are your greatest asset and most significant liability. It is a dichotomy that every business owner has to accept. An EPLI coverage can protect you against demands made by employees claiming discrimination, harassment, wrongful termination, and other employment issues.

Make sure you have this type of insurance even if you only have one staff member on board. Employment-related claims can last for years. It's also a costly process, in both financial and emotional terms. 

Every business needs a robust insurance policy. The right coverage will ensure that you and your company are protected. 

At Hayek Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (805) 496-8835 or Click Here to request a free quote.