Insurance for Direct-to-Consumer Brands

General liability insurance provides coverage for common risks, including bodily injury, property damage, and personal and advertising injury claims that could arise from daily operations. For DTC brands, this is essential as they often have interactions with customers, suppliers, or even visitors in physical locations or via marketing campaigns, making them susceptible to a variety of claims.

Cyber liability insurance protects against losses resulting from cyberattacks or data breaches. DTC brands, often reliant on e-commerce platforms and customer data collection, are prime targets for cybercriminals. This coverage ensures they can address the aftermath of a breach, from notifying affected customers to recovering compromised data.

Workers’ compensation provides financial benefits to employees who suffer work-related injuries or illnesses. DTC brands, whether they have a handful of employees or an expansive team, must ensure their workforce is protected. In many jurisdictions, this insurance is mandatory, safeguarding businesses from potential lawsuits and ensuring injured workers receive necessary medical care.

EPL insurance offers protection against claims arising from employment-related issues, such as discrimination, wrongful termination, or sexual harassment. For DTC brands, as they grow and expand their workforce, they become more exposed to such claims. EPL insurance can help mitigate the financial implications of potential lawsuits and maintain a brand’s reputation.

Product liability insurance covers claims related to the manufacture or sale of products that may cause injury or harm to consumers. Given that DTC brands sell products directly to end-users, any defects, malfunctions, or adverse reactions can lead to lawsuits. This coverage is crucial in ensuring brands can handle any product-related claims without severe financial repercussions.

Property insurance protects a business’s physical assets, such as buildings, equipment, and inventory, against risks like theft, fire, or natural disasters. For DTC brands with warehouses, offices, or retail spaces, this coverage is vital. It ensures that in the event of unforeseen damages, they can quickly recuperate and continue operations.

Transit and transportation insurance covers goods in transit, whether they’re being shipped by land, sea, or air. Since DTC brands often rely on shipping products directly to consumers, there’s an inherent risk of goods being damaged, lost, or stolen during transit. This insurance ensures that brands are financially protected against such losses, ensuring smooth delivery operations.