E-Commerce Business Insurance Tips
As more and more businesses operate online, either as an online business only or an extension to your physical premises it is important to get the right insurance in place to protect yourself.
E-Commerce business insurance is specifically designed to protect online retailers for the many risks involved in selling online.
What type of Insurance do I need for my online business?
An E-Commerce policy needs to be tailored to your specific needs. Your broker will be able to discuss the following covers with you:
Defamation (including libel and slander)
Important things to consider:
Do you import your products from overseas?
It is extremely important to notify your insurer if you are importing products from overseas.
Most insurers will class you as the manufacturer as it is extremely difficult to hold the overseas manufacturer responsible for injuries that occur in Australia.
Your insurer will need to know full details of the products being imported and the quality control measures that you have in place.
Do you export your products to North America?
Due to the legislation in the US most insurers have a North America Exclusion added onto the policy.
You will need to add this cover as an extension to your policy so it is important to notify your insurer/ broker if you are doing any export to adequately protect yourself.
What about Drop Shipping?
Many business owners believe that if they are drop shipping, they are not response for the products but from an insurance perspective this is simply not the case.
The importer is considered to be the manufacturer when it comes to Insurance and therefore has a duty of care to prevent the circulation of defective products.
Insurers will want to know what quality control processes are in place for these goods.
Regardless of your situation, here at Insure Gold Coast we have the knowledge and expertise to help you find the appropriate cover for your needs.
Please note - this blog post provides information only. The content of this post, including any information contained in it, has been prepared without considering your requirements, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. You should review the product disclosure statement for any product that the information relates to it before acquiring the product.