Do Online Businesses Need Insurance?

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Business Insurance for Online Businesses

Business insurance for online business Running an online business can leave you open to unique risks. Business insurance, also known as commercial insurance, can help protect you from these kinds of risks and other common ones that many small business owners face. Without it, you could be responsible for paying claims out of pocket.
You may be wondering, “Do online businesses need insurance?” While there’s no one-size-fits-all answer, it’s a good idea to have coverage if you:
  • Operate your online business from a physical location that you own or rent
  • Have digital or physical property that can get stolen or damaged, such as customer data or inventory

Why Do Online Businesses Need Insurance?

Do online businesses need insurance Your online business isn’t just a website. You also use social media, email and other digital platforms to operate your company, leaving you open to potential risks. Business insurance can help if:
  • Someone hacks your online business’ payment system and takes information related to your customers’ credit cards.
  • A photographer sues your business for copyright infringement for using their photo without permission.
  • Your client files a lawsuit against your business for breach of contract.
That’s why online businesses need insurance. It helps protect your company in different situations and can prevent you from paying for costly claims.

What Insurance Do Online Businesses Need?

Protecting your business from various claims is essential to its growth and success. Learn about common insurance coverages you can get to help protect your online business.

Data Breach Insurance

Many online businesses store sensitive or confidential customer information. If you lose this information, data breach insurance and cyber liability insurance can help. This coverage helps your business respond to a data breach and can help cover your costs to:
  • Notify impacted customers
  • Offer credit monitoring services
  • Improve your business’ reputation

Business Owner’s Policy for Online Businesses

Many small businesses have a Business Owner’s Policy (BOP). Having this is a good starting point for online business insurance because it combines three coverages into one policy. With a BOP, your online business has:

Product Liability Insurance for Online Retailers

Product liability insurance for online retailers Product liability insurance helps protect your business if something you sell online hurts someone or damages their property. For example, let’s say a customer buys a battery from your website but a defect causes it to overheat and the customer burns themselves. They then sue your business for their injury and medical costs. Product liability insurance can help defend your business in court or cover a settlement or judgment.

Professional Liability Insurance

Your customers can sue you if they believe you made a mistake in your professional services. That’s why having professional liability coverage as one of your internet insurance options is important.
Let’s say you run an online marketing consulting business. You design a new marketing plan for a client. After they launch it, their sales decrease and they lose revenue. They sue your business and blame your company for the lower sales. Professional liability insurance coverage can help pay your legal fees and costs in this situation.

Workers’ Compensation Insurance

Most states require businesses with employees to have workers’ compensation insurance. Workers’ compensation gives your employees benefits if they get a work-related injury or illness. For example, if one of your drivers hurts themselves after slipping on ice while making a delivery, workers’ compensation can help cover their treatment costs.
If your online business has employees, check with your state to see if you need to have this insurance. Depending on your state, you can get workers’ compensation insurance from:
  • An insurance company or insurance agency
  • A state-run fund
  • A monopolistic fund

Commercial Auto Insurance

If you or your employees use your own car for business, your personal car insurance may not offer enough protection on the road. Instead, you’ll want to look at a commercial auto insurance policy. This can help cover property damage if you or your employees get into a car accident while driving for business.

How Do I Get Business Insurance For My Online Business?

An online business insurance policy can give your digital business comprehensive protection. We understand your online business has unique needs. Our specialists are here to answer your questions and get you the right coverage for your online business. We know your time is valuable, so we’ve made it quick and easy to get an online quote.
The Hartford shall not be liable for any damages in connection with the use of any information provided on this page. Please consult with your insurance agent/broker or insurance company to determine specific coverage needs as this information is intended to be educational in nature.
The information contained on this page should not be construed as specific legal, HR, financial, or insurance advice and is not a guarantee of coverage. In the event of a loss or claim, coverage determinations will be subject to the policy language, and any potential claim payment will be determined following a claim investigation.
Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. In TX, this insurance is written by Sentinel Insurance Company, Ltd., Hartford Casualty Insurance Company, Hartford Lloyd’s Insurance Company, Property and Casualty Insurance Company of Hartford, Hartford Underwriters Insurance Company, Twin City Fire Insurance Company, Hartford Accident and Indemnity Company and Hartford Fire Insurance Company. In Arizona, New Hampshire, Washington and California, the insurance is underwritten by Hartford Accident and Indemnity Company, Hartford Casualty Insurance Company, Hartford Fire Insurance Company, Hartford Insurance Company of Illinois, Hartford Insurance Company of the Midwest, Hartford Lloyd’s Insurance Company, Hartford Underwriters Insurance Company, Maxum Casualty Insurance Company, Maxum Indemnity Company, Navigators Insurance Company, Navigators Specialty Insurance Company, Pacific Insurance Company, Property and Casualty Insurance Company of Hartford, Sentinel Insurance Company, Ltd., Trumbull Insurance Company and Twin City Fire Insurance Company. The Hartford® is The Hartford Financial Services Group, Inc. and its subsidiaries, including Hartford Fire Insurance Company.
The Hartford® is The Hartford Financial Services Group, Inc. and its property and casualty subsidiaries, including Hartford Fire Insurance Company. Its headquarters is in Hartford, CT.
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