Online businesses have to deal with similar risks as more traditional ones. In some ways, things are more complex due to the emergence of malware and other viruses by hackers. Having a strong insurance plan is more important than ever before.
Finding commercial insurance in Houston should be a top priority for your business. Many business owners neglect insurance, which could lead to major problems in the future. Your online business is vulnerable to threats that could damage your income and potentially put you out of business. If you have an online business, purchasing commercial insurance is the right move for your long-term future. Here’s a look at some essential coverages for your business.
Significant Threats to Your Online Businesses
Multiple factors may impact your business and cause potential losses. Starting a business in Texas is risky because of the high probability of inclement weather. Severe weather moving through Texas could damage your internet connection, causing the network to crash. An accidental fire may also impact your business. Your connection can also be broken due to an act of vandalism. These are common issues where commercial insurance protects you.
The biggest threat to online businesses is hackers. Research shows that hackers are developing complex schemes every year to access sensitive data. Commercial insurance protects your business if you are a victim of online theft because hackers infected your network with a virus. You could face a major lawsuit if you don’t have insurance in this situation. The privacy of your customer’s information, as well as your documents, may be exposed to hackers. In addition to a serious lawsuit, you will also be impacted because the credibility of your business decreases drastically. A data breach may cause your customers to look for an alternative.
Your business is also at risk due to potential copyright violations. If you don’t have insurance, you may have to go through a lengthy legal battle, draining your assets. You could also face breach of contract allegations that can lead to an expensive lawsuit. You also have to worry about potential liability disputes if you sell products online. Commercial insurance protects you if a customer alleges that your products caused them harm.
If hackers corrupt your data, cyber liability coverage steps in. Cyber insurance covers all damage related to system restoration, business interruption, ransomware, and the aftermath of public relations.
Chargeback insurance covers retailers who are paid through credit card transactions. This type of coverage protects your business from potential losses resulting from fraudulent transactions.
General liability insurance protects your business against potential liability disputes due to a personal injury on your property or damaging someone else’s property. Your business is also protected against any issues arising because of the products your business sells.
If you use online employees to help operate your business, workers’ compensation is an asset. Workers’ compensation policies cover your business from a potential lawsuit if one of your employees is injured on the job. Workers’ compensation covers your employee’s medical treatment and all of their lost wages while they are rehabilitating. Taking care of your employees prevents them from suing you.
Seller Suspension Insurance
If you operate your online business through an e-commerce platform, you are at risk of having your account suspended at any time. If you choose to fight their decision, you may cease operations during the process, which drastically reduces your income. Seller suspension insurance is beneficial because it helps you cover any losses and expenses you incurred while your account was suspended.
Online businesses are unique. Obtaining a commercial insurance policy in Houston helps protect your business against potential emergencies. If you have any questions about your policy, contact our experts at J. Archer Insurance Group, and we will assist you.