Why do I Need Commercial Insurance If I Have a Digital Business?
As the digital world continues to expand, more and more businesses are operating without a physical storefront. With this increasingly popular trend, some traditional commercial insurance policies may seem unnecessary for digital companies. While speaking to an insurance agent is the best way to gauge what coverage you need for your business, these are some things to think about.
If You Are Running Your Business From Home
Many people who run their business from home lack adequate insurance coverage. According to Entrepreneur, 60% of home-based businesses don’t have proper coverage. A homeowner’s insurance policy doesn’t cover any business-related accidents. If you invite a client to you home and they trip and fall, your home insurance won’t cover the costs. And, if you haven’t disclosed your home business to your insurance company, they may deny you any coverage!
In-Home Insurance Policy –
If you’re running your digital business out of your home, you may want to ask about an in-home insurance policy. It provides coverage for your business equipment and liability. Your homeowners insurance policy would not cover any business-related accidents.
Whether you are running your business from your home or not, this is one of the most basic type of commercial insurance. Even though your business may not have a storefront, chances are you have some sort of office space. This will help cover any accidents that may occur there. It can also help protect you in case there is an issue with one of your products. If a customer is injured from a product and files a lawsuit against your business, general liability insurance can help cover those costs.
BOP (Business Owners Policy) –
A BOP policy is a bundle insurance policy which bundles many policies together. It usually includes crime insurance, business interruption insurance, vehicle insurance, property insurance, liability insurance, and flood insurance. This package can be tailored to the needs of your business. For instance, if you run your business primarily online, then you may want to make sure that you have cyber insurance in case of hacking. You may also want to have liability insurance in case there is an issue with your product or service. Because you are essentially bundling all your separate commercial policies together, having a BOP can reduce the cost of insuring your company.
If you’re not sure your current insurance policy will have enough coverage, you may want to think about getting umbrella insurance. This provides some additional coverage in case something happens. For example, if you are hosting an event where there was accidental property damage, an expensive claim may result. Basically, umbrella insurance can help provide extra coverage above the limits of your other policies. It’s another layer of safety.
Because each business is unique and requires different policies to help keep it protected, you’ll want to talk to an agent. Your online business may sell products, or you could be offering a software service, or you might be running out of your home. Whatever the case, your insurance agent will know how to cater your policy to your business’s needs. Accidents happen all the time, and when they do, you’ll want to make sure that you, your business, and your employees are safe.
You can call and Encharter agent to discuss your online business and what you need to keep it safe! We are always here to help! Reach us at 888.754.8299!
Additional Sources:
http://www.investopedia.com/terms/business-owners-policy.asp
https://www.entrepreneur.com/article/220125
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