What Insurance Do I Need For My Online Business?

Virtually every enterprise needs some kind of insurance – including online businesses. Whether you're an eBay trader operating out of your own home or an entrepreneur running a larger scale e-commerce business, there are risks you need to protect yourself against. Here is a rundown of some of the insurance options you might need to consider.

### Contents cover

You need to protect your business tools, such as your computer, from damage or theft. If you operate your online venture from home, your regular contents insurance policy might not cover the equipment you use for business – so check with your insurer and amend your policy as necessary. If you also use mobile equipment outside of the home for business, think about getting special cover it.

If you keep stock on your premises, this can also be included in your contents cover.

### Product liability insurance

If you sell goods, product liability insurance will cover compensation costs should they cause injury to someone or damage their property. Some products carry more risk than others so make sure your policy is appropriate for the goods you sell.

### Goods in transit cover

If you rely on carriers to deliver the goods you sell online, it’s in your interests to make sure you’re protected in case anything gets lost, damaged or stolen along the way – and that’s where goods in transit insurance can help. You can also get cover for the goods delivered by your own vehicles.

### Business interruption insurance

Whether you operate your online business from home or office premises, imagine if you were affected by fire, flood or theft? No doubt it would have dire consequences for your enterprise. However, you can prepare for such eventualities with business interruption insurance, protecting your income until you can get up and running again.

### Employers’ liability insurance

If you have any kind of employee working for you outside of your own family, even on a temporary or voluntary basis, then employers’ liability insurance is a legal requirement. This protects you against claims for injury, damages or loss from employees, and you need to be covered for at least £5 million. If you take staff on but don’t get employers’ liability insurance, you could be fined £2,500 for every day you don’t have it. You could also risk a £1,000 fine if you don’t display the insurance certificate or refuse to present it to an inspector if they request to see it.

### Public liability insurance

This type of cover protects you against compensation claims for things like damages, loss of earnings or future loss of earnings should a member of the public suffer injury, damage or loss as a result of your business. This type of cover might not be necessary for your e-commerce business as most if not all of your interaction could take place online. However, you might visit suppliers or they might visit you, or if you have a warehouse then your staff could come into contact with members of the public – in which case a policy might be worth considering. Some insurers offer liability packages for e-commerce businesses that include public liability insurance as well as product liability and employers’ liability cover.