Online businesses have certain characteristics that make them vulnerable to different types of risks. The online environment poses some serious threats, like attacks from hackers, spammers, or online service functionality. Also, if you are working with confidential data from customers, you are very vulnerable to online attacks. The only method to protect your business against huge losses is to buy an internet business insurance policy. If your website is attacked, important data, like the personal and financial information of your customers, will fall in the wrong hands. When such an event occurs, you will be facing not only your clients’ dissatisfaction but also lawsuits from them.
An insurance policy designed especially for online businesses is the right way to protect your company. A lot of companies buy insurance only for the equipment: computers and different accessories. However, the major risks associated with online businesses are related to online activity: the involuntary transmission of computer viruses, losing important data, or website copyright infringement. Those risks occur for almost all businesses those days since online presence became mandatory for all professional companies. Whether you sell products online, you send confidential data online or simply your company has its own website, you are exposed to potential losses.
Most insurers now offer policies that cover online risks. There are different types of policies, and you need to buy one that’s suitable for your business. For example, a company that has a simple website, which doesn’t imply online payments for handling confidential data can get the basic package: coverage for website copy infringement or for the transmission of computer viruses.
However, if you offer sophisticated services, like selling products online, working on your client’s confidential information, or developing software for your clients, you need a lot more coverage. First of all, you need coverage for your equipment, since they tend to be fragile and expensive. Then, you need to be protected from situations like the involuntary disclosure of confidential data or identity theft.
Online businesses have a lot of advantages – low costs, the possibility to reach tens of thousands of customers from all around the world, and the possibility to work directly from home. But the risks are not to be neglected. Owners of small businesses sometimes feel like paying yet another insurance policy is a useless expense, but that’s simply not true. Small businesses are particularly vulnerable to damage claims from customers since they don’t have the money to deal with lawsuits and claims. So, even if you only have a website where you sell your homemade cookies or handmade jewelry, you still need to get an insurance policy to protect you against online risks.
When you select your insurer, make sure you find one that offers you policies designed to cover the specific risks of online businesses.
