Why You Need eCommerce Insurance
Side Hustle or Small Business: You Need eCommerce Insurance
Just about everyone is looking for ways to increase or supplement their income. For many individuals, selling products online seems like the perfect way to do so. You might be a small business, a stay at home mom, or an expert in side hustling, with products that you know consumers will love. Selling online may seem as easy as putting your product up on an online retailer and connecting with the people who want it. However, avoiding the liabilities involved does not prove as simple. For all the curveballs online selling can throw at you, you need eCommerce insurance.
Partner with a Brokerage Who Knows the Rules and Understands Your Needs
Many people don’t know that in order to list on the websites of online retail juggernauts such as Amazon, Walmart, Target, or eBay, private sellers are required to have liability insurance. If you want to truly succeed in the online space, you will need to partner with an insurance brokerage. Specifically, you need someone who not only proves themselves experts in insurance, but understands the specific needs of eCommerce. This is something you should be purchasing before you even get started.
Do I Really Need eCommerce Insurance?
eCommerce is one of the fastest growing avenues for small businesses to generate income. But, as the potential to capitalize grows, so do the risks. You can reach consumers on the other side of the world, in far-flung places you’ve never heard of. This reach will undoubtedly increase your sales, but it also increases your liability. While you may not have a physical storefront or employees who are at risk of injuring themselves in the workplace, you still have a product that could potentially cause harm. And you also need to be protected against cyber attacks, data breaches, and distributed denial of services (DDoS). Not sure exactly what all of these issues involve? Then you definitely need eCommerce insurance, or risk a lawsuit that will negate all the hard work you’ve put into building your business.
A Cyberattack can happen at any time and may go undetected while it wreaks havoc. You may be fast asleep while cybercriminals take advantage of misconfiguration or poor management of cloud resources – even if you have the most up to date technologies implemented and maintained.
Your customers are going to use their unique credit card details to purchase your product. And they do so with full confidence that their information is safe. So eCommerce insurance is there to protect you if something unthinkable happens, and it is traced back to the purchase of your product.
In a Distributed Denial of Services Attack (DDoS), hackers can overload your system and completely disable it. The outcome: it becomes impossible for you to make the sales you rely on to keep your business going, resulting in loss of income and potential customers being unable to access your system.
There have been a number of prominent lawsuits against big-name companies (Ikea and Etsy, to name a couple) due to product defects or misuse that has resulted in death. This is an absolute worst-case scenario for any retailer or business owner. Still, no matter what you are selling or how you are packaging it, you have to stay aware of such possibilities. And know that systems are in place to protect your interests if something like this does happen.
Grand Mutual Has the Solution to Your eCommerce Insurance Needs
In the past, getting insurance that covers your eCommerce business and all the issues you may face selling products online, hasn’t been a straightforward process. Grand Mutual is a market leader and top Los Angeles insurance company. We can deliver fast and comprehensive coverage, customized for your eCommerce needs. Don’t take the risk of starting an eCommerce business online without partnering with Grand Mutual. For a competitive fee, you’ll have peace of mind knowing that you are not vulnerable to the legal issues that may arise from sending your product all over the world. Also, you can bundle your eCommerce insurance with any other type of insurance your business requires for unrivaled protection.