What kind of insurance does my business need?

There are a number of reasons for an online business owner to consider protecting oneself and the online business by purchasing an insurance policy.

– If you are managing an eCommerce shop, then you may be liable for damages or injuries caused by your products. For example, if a customer complains that the food purchased through your shop caused a sickness or an allergic reaction, or if the toaster purchased caused a fire, etc

– You may be liable for damages if your site is hacked and the customers’ sensitive (personal and/or financial) information is stolen and sold/used at the expense of your customers.

– A trademark infringement or a copyright issue can pave the road to a lawsuit.

Other factors that can negatively affect on your online business can include the following;

– The Internet being down, or a denial-of-service (DDoS) attack on your server can severely interrupt a business’ money flow.

– The loss or damage of the home office, computer and office equipment as a result of fire, theft, etc

Of course each of those scenarios may be covered by a separate insurance policy, so it helps to know exactly what it is that you would like your insurance policy to cover.

However, generally speaking, if you are simply referring your website visitors to a third party online store such as amazon, then it is highly unlikely that you would need a business insurance policy (to protect you against lawsuits) because your sponsor (the third party online store) that you are promoting will be dealing with the customers from taking their details to sending them the purchased products. The sponsor will handle all points of the sale, and is ultimately responsible for the customer’s shopping experience. However, for added peace of mind, you may choose to have a good disclaimer, and terms & conditions with a limitation of liability clause on your site that explains the fact that you do not operate, control or endorse any information, products or services of any third party sites that you are promoting, and cannot be held liable for their actions.

Furthermore, carefully choose which sponsors to promote and work with. Research and read customer reviews of the sponsors that you may be interested in working with. Avoid promoting dodgy programs with poor customer reviews.