Insurance Considerations for E-Commerce Businesses During the Holidays

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Common Threats E-Commerce Retailers Face During the Holidays

The common threats online retailers face during the holiday shopping season include:

• A spike in cyber-attacks. Cybercriminals know what buttons to push and when to infiltrate a company’s network through various tactics, such as phishing attacks, ransomware attacks, and distributed denial of service (DDOS) attacks. 

• Financial fraud. Fraud is a significant financial risk to organizations of all sizes and industries. First-party and third-party fraud ramps up during the busy shopping season.

• Internal weakness. Tired, busy, and stressed employees may be distracted and make mistakes that can lead to data breaches.

• Technical vulnerabilities. Unaddressed software and operating system updates can open the door for cybercriminals to quietly enter through known exploits.

What Insurance Do E-Commerce Businesses Need?

Here are the types of business insurance coverages an e-commerce business or online retailer may require:

• Cyber Liability Insurance

Cyber liability insurance covers your legal and financial responsibilities following a cyber-attack or data breach, like lawsuits against you and regulatory fines.

• Cybercrime Insurance

Cybercrime insurance is designed to cover financial losses caused by criminal activity online, such as theft, fraud, phishing attacks and ransomware.

• Commercial Crime Insurance

Commercial crime insurance covers financial, securities, and inventory losses because of internal theft and employee fraud. However, it does not cover damage or loss resulting from burglary, robbery, or break-ins.

• Commercial Property Insurance

Commercial property insurance covers expensive damages and losses to your business property, contents, and merchandise caused by fire, water, natural disasters, theft, and vandalism.

• Product Liability Insurance

Product liability insurance is a must-have for any business or independent seller selling goods (including food) to the public. This type of coverage may be included with general liability insurance or added to your overall policy. It’s designed to cover claims alleging third-party property damage or bodily injury caused by a product you manufacture, distribute, or sell. 

• General Liability Insurance

General liability insurance covers third-party bodily injuries and third-party property damages caused by your regular business activities or unexpected accidents. It includes protection for defamation or false advertising allegations and tenants’ legal liability if you damage a commercial space you rent or lease. For example, if your business decides to open a temporary pop-up shop for the holidays, you’ll need general liability and tenants’ legal liability coverages.

• Business Interruption Insurance

Business interruption insurance may be included in a commercial property policy, or you can add it to one, but it is not a standalone coverage you can buy. It covers your lost income and business overhead costs following an insurable loss that forces you to close your business temporarily for repairs. For example, if your e-commerce business suffers a devastating cyber-attack, business interruption insurance may cover your lost profits, loan payments, utility bills, and employee payroll.

How to Get Low-Cost E-Commerce Liability Insurance Quickly

Zensurance can get the low-cost e-commerce insurance protection you need for your business quickly and easily before disaster strikes.

Fill out our online application for a free quote in less than five minutes.

Whether you buy your policy online or wish to speak to a Zensurance broker, we can provide the coverage you need and customize it to suit your online business.