Serving all Online and Internet Retail Business' Registered in Colorado
The outbreak of Covid-19 has caused a fundamental change in the way we shop and purchase the everyday items we need, and it looks like this trend is here to stay.
As a business owner who wants to enter this selling arena, the most direct route is to set up a sellers site at Amazon, E-bay or Shopify since their selling and distributions systems are already set up for you. Or you can set up your own website, sell directly to your client and ship the product directly to buyer. Either way, you need the same coverage to help guarantee the solvency of your business in case a disaster happens. Any business needs insurance, the same is true of an online/internet retail store.
Below is a list of the types of insurance coverage an online store might need. All Business' need General Liability, Business Income and Work Comp to protect their employees, but the coverage listed below are particularly important to internet based online retail stores.
Product Liability
Yes, bad things happen, and people get injured by consumer products everyday. Product liability insurance pays for costs associated with injuries caused by the product sold. It can be purchased in a packed policy or as a stand alone policy and is designed to pay for attorneys fees to defend the products seller and any restitution costs the seller is liable to pay to the injured party. Make sure this policy has a 'world-wide' coverage territory as most internet sellers will sell their product to a foreign buyers,
Business Property / Inventory Insurance
Any online store will have a certain amount of inventory to sell at a moments notice. What happens if there is a fire or theft of this property? That could be a devastating event for
a small internet store owner. Make sure the inventory is insured with Business Property Coverage and has an allowance for a 'seasonal increase' in inventory or has a limit to cover the most
inventory you carry at the height of your selling season.
Inland Marine Insurance
This coverage is designed to protect business property (sold products) while in 'transit'. There is an assumption that once an item is in the shipping companies possession, that they are responsible
for it. BEWARE! This is certainly not the case if you ship via the US Postal system (unless you purchase special insurance through them) and common carriers such as UPS and FedEx have
maximum amounts they would pay and certain requirements need to be met before they would reimburse the seller in case an items is lost, stolen or damaged. An internet seller to who does a high
volume of shipping would be advised to purchase an inland marine insurance policy.
Cyber Liability
Almost all online transactions are competed on the Internet with the client paying via credit card and the seller capturing credit card information as payment. In the State of Colorado, credit card information is considered 'personal information' and must be protected by the party that 'captured it'. In other words they can be held liable if the credit card numbers they captured are breached and stolen by a 3rd party. Cyber liability coverage helps to reimburse those costs which can be substantial.
Dependent Properties Insurance Coverage
Pays for the loss of income or increase in expenses resulting from damage to the premises of another organization on which the insured depends; such as a key supplier or customer.
Example: If you sell purses imported from Mexico and that supplier burns to the ground. Your loss of income would be reimbursed until you can find another supplier.
General Liability
Every Business in the United States needs General Liability Insurance. It also acts as 'premises liability' in case someone is injured in your warehouse such as a delivery driver or 3rd party vendor.
Denver West Insurance Brokers is a local, independent insurance broker located on the west side of Denver in Golden, CO. Email us or Give us call at 303-960-5290 Let us find the right coverage for your Internet retail store.