Tailoring Your ME Business Insurance to your Online Business
9/16/2011 12:00:00 AM
More people are closing their doors and going online in these tough economic times, while other new ventures are springing up as home-based enterprises. However, operating online means you may have new things to consider when organizing your ME business insurance.
What’s different for the online business?
One area you should look at carefully is your liability insurance. When people buy online, they are entrusting you with their credit card and personal information, and you are responsible for the security of that information.
If your website publishes particular information, or advertises in a way that someone later claims isn’t true, you could end up facing a claim.
You may also want to consider business interruption coverage. In the event of a major power outage or a disaster that affects telecommunication facilities, your business could grind to a halt.
Other risks you could face as an online business include the loss of your website (for example, if your hosting company servers are hacked), or the loss of data stored on your computers.
Any event that prevents you from processing customer enquiries and purchases for more than a short while could result in a significant loss. There are two aspects to protecting yourself against these risks:
1) Ensuring you have a business continuity plan in place and back-ups of all your information, including your website files.
2) Insuring against the risks that your ME business insurance policy can cover.
If you’ve called an insurer and been told they don’t insure online enterprises, don’t despair. Not all insurers do. Call your local agent who can help you find the type of coverage you need.
What’s different for the online business?
One area you should look at carefully is your liability insurance. When people buy online, they are entrusting you with their credit card and personal information, and you are responsible for the security of that information.
If your website publishes particular information, or advertises in a way that someone later claims isn’t true, you could end up facing a claim.
You may also want to consider business interruption coverage. In the event of a major power outage or a disaster that affects telecommunication facilities, your business could grind to a halt.
Other risks you could face as an online business include the loss of your website (for example, if your hosting company servers are hacked), or the loss of data stored on your computers.
Any event that prevents you from processing customer enquiries and purchases for more than a short while could result in a significant loss. There are two aspects to protecting yourself against these risks:
1) Ensuring you have a business continuity plan in place and back-ups of all your information, including your website files.
2) Insuring against the risks that your ME business insurance policy can cover.
If you’ve called an insurer and been told they don’t insure online enterprises, don’t despair. Not all insurers do. Call your local agent who can help you find the type of coverage you need.
