My business is internet based; I don’t need internet business insurance, right?
Any business, small or large needs to protect itself and its assets with some form of commercial business insurance. Just because you operate an internet business does not exclude you from risk. In fact, certain exposure is far greater depending on what type of business you may conduct on the internet.
Let’s start with the basics. Your internet driven business has a location. It may be your home, or another owned or leased location. First, remember that homeowners policies neglect to cover just about any business losses. Knowing that, we will assume the basic business coverage is needed.
Property insurance and general liability insurance are needed for any business. Property insurance will cover the space the business is located as well as office furnishing. General liability insurance will cover against claims of bodily injury or property damage.
Workers compensation is required in most states if your business has employees. A business owners policy can be a good starting point for an internet business.
While it won’t cover workers compensation insurance a business owners policy will combine both property and general liability insurance into one policy. Within the business owners policy is the ability to add specific coverage related to internet business risk.
These types of coverage are evolving at a rapid rate. You can add Computer Operation Interruption coverage in the event of income loss due to computer system breakdown. Electronic data loss covers the repair and replacement of information lost due to harmful viruses. You can also add Electronic Data Liability coverage for loss of data caused by an electronic data incident.
Talk with your licensed insurance professional about whether a stand alone e-commerce policy or a business owners policy will cover your internet business insurance needs. Never assume you are covered or not exposed to significant risk in your internet business.