Insurance for E-commerce

What it covers:
Covers the company if a product they manufacture, distribute or sell causes bodily injury or property damage. Any company in the supply chain can be held liable if there is an injury that wouldn’t have occurred if the product wasn’t brought to market.

Why you need it?:
Product liability claims are costly from both a legal and reputational perspective. It protects e-commerce companies in two ways. 1. Covers companies that manufacture or important products against lawsuits if a product fails and causes injury or illness to a consumer. 2. Provides protection in cases where the retailer damages or mishandles the product being sold in a way that harms the consumer.

What it covers:
Protects the company and key individuals from liability related to the management of the organization. Companies that indemnify their executives against certain covered claims can turn to their D&O policy for reimbursement. If the organization itself is named in a suit, the policy would defend the entity in addition to its leadership.

Why you need it?:
Ensures the company and its leadership is protected from legal liability related to allegations of breach of fiduciary duty and other management-related claims. It provides the capital required to absorb certain legal costs without mortgaging the future of the entire organization.

What it covers:
This protects your organization from lawsuits, fines and penalties arising out of a hacking attack or data breach. It can also reimburse the company for its direct expenses such as breach notification costs, credit monitoring, data restoration and forensic analysis.

Why you need it?:
If you collect any sort of personal or organizational information, have a “login” feature on your site, integrate with another organization’s systems in any way, have employees who could fall for a phishing scam, generate online content such as blog posts or even simply rely heavily on email communications, you need cyber liability insurance. E-commerce companies who regularly process transactions (or host a third party payment processor) are highly visible targets for hackers and, as such, should be protected.

What it covers:
These are two different policies that cover the same risk: products or inventory being damaged, destroyed or lost while in transit. An ocean cargo policy would protect you from the risk of the loss of a plane or ship that is carrying your inventory. And “inland marine” shifts the covered territory of a cargo policy “inland”: instead of insuring risks at sea or in the air, coverage applies overland, shoreline and river transport shipments.

Why you need it?:
Taken together, these policies provide a comprehensive plan for managing the risk to your property while it’s out of your control. Shippers often offer their own insurance, but those policies are designed to protect the shipper, not their customers. E-commerce retailers that frequently ship products or inventory will want to have their own policy that will reimburse them right away.

What it covers:
Provides a legally required coverage protecting employees if they are physically injured or get sick while on the job. Legal requirements vary state-by-state so be sure to research the laws in each state where you have employees located.

Why you need it?:
Fines could be imposed on any company that doesn’t comply with their state’s workers comp laws. Employers liability coverage also provides valuable legal defense costs if a lawsuit develops in connection with the injury or illness outside of what standard Workers Compensation covers.

What it covers:
Building coverage protects properties that are owned, while business personal property coverage reimburses for covered damage to the contents of a building. Lost income and extra expenses caused by a covered loss can also be addressed by business interruption coverage.

Why you need it?:
Any company with a physical presence runs the risk of their physical property being damaged or destroyed. If you hold large amounts of inventory or own equipment you’ll often have a lot at stake. On top of that, renting temporary office space after a fire is a surprise cost that no business needs to be caught off guard by.

What it covers:
Protects the organization and its management by paying the costs of defending against certain suits from employees or investigations from government agencies. Common claims include allegations of harassment, discrimination, retaliation, and wrongful termination.

Why you need it?:
If you or the organization itself is named in such a claim, the coverage would defend you and pay the judgment or settlement against you. Keep in mind how easy it is for an employee to start an action that requires a legal defense.

What it covers:
Covers the organization from some of the fundamental risks that come with running an Ecommerce organization, such as ‘slip and fall’ claims, damage to a third party’s property, products liability claims, damage to rented space, and personal or advertising injury claims.

Why you need it?:
It forms the foundation of any risk management program. On top of protecting the company from legal liability caused by bodily injury or property damage, this coverage is usually required in contracts like office leases and vendor agreements.