Over the last few years, we have seen a stark increase in businesses that are buying and/or selling products through internet services and online shop. These eCommerce platforms have had such massive success that it is estimated to reach up to $4.8 trillion in overall sales worldwide.
However, eCommerce does come with its own risks, and without the proper encryption services to protect extremely sensitive data and the right business insurance, your business can collapse like a house of cards.
The Texas business online insurance quote providers of Quick Quality Quotes want to share with you a little of their expertise regarding these threats and help you find the right insurance to cover any financial damages your eCommerce business may incur as a result.
Watch Out For These Potential Threats
While running a successful online business, several different threats may present themselves, such as:
- Data Security – Perhaps the biggest concern that worries business owners and consumers alike, how secure are the servers from a potential data breach from online?
Without an encryption service, a data breach can ultimately hurt your eCommerce business, making recovery nearly impossible.
Not only would your customer’s information be leaked out and their own identity be jeopardized, but without the proper precautions, they might be able to pursue legal action against your business.
- Third-Party Interruptions/Attacks – Business owners should be aware of what is known as a Distributed Denial of Service attack.
DDoS attacks happen when hackers spread out malicious botnets to storm websites that can generate so many requests that the servers crash.
With your servers shut down for an unspecified amount of time, it can lead to loss of revenue and attract angry consumers.
- Defective Products – Although it might not specifically be the online merchant’s fault, some products can be shipped out with defects made during the design or manufacturing process.
In a worst-case scenario, the defective product may cause physical harm to the customer.
- Fraud – Nowadays, internet thieves are getting more and more creative with the way they commit fraudulent transactions. The most common cause of fraud employs the use of a stolen credit card to make purchases. Other notable forms to be on the lookout for include:
- Refund Fraud – This occurs when an offender attempts to misuse the business’ return policy. For example, an offender may have stolen a receipt and grabbed a listed product off of the shelf to return for cash.
- Chargeback Fraud – This happens when a customer purchases something from your business and then requests a chargeback from their bank after the purchase is complete.
- Phishing – Hackers may attempt to get consumer’s social security number, bank account numbers, and other forms of personal data via fake emails disguised as trusted businesses.
- Identity Theft – The most common form of Fraud. The scammer buys a product using a fake name and a stolen credit card.
The Types of eCommerce Insurance You Need
Some essential insurance coverage for any business, especially those run through eCommerce, include but are not limited to:
- General Liability – Protects small businesses from personal injury claims, property damage, and medical costs.
- Cyber Liability – Protects your business’ liability from data breaches and other related attacks.
- Transportation Coverage – Covers the transportation of your product from location to location.
- Contents Coverage – If your business manufactures their own products or stores products inside the warehouse, this will protect the inventory in case something happens.
- Workers’ Compensation – This varies depending on the state you do business or manufacture in. Your employees may need coverage in case of an injury, which can also happen in an online business.
- Directors and Officers Insurance – This protects the company and its important executives from liability stemming from managerial mistakes which caused legal actions filed against them.
- Intellectual Property Insurance – Protects your business if another party wants to sue for possible infringement. This coverage is very important for eCommerce businesses to have.
We understand that when it comes to discovering your business insurance needs, it can be a bit overwhelming. With the right coverage at an affordable rate, however, running a protected online business can give you peace of mind that pays dividends.
Let Quick Quality Quotes help you find the best business insurance policies at the best price. Fill out the form below to get in touch with us right now!