Business insurance Wisconsin companies receive quote requests regarding online businesses almost on a daily basis, as more and more people are turning to the internet for an occupation that provides a much needed steady income or to materialize a big business idea.
Online businesses are an increasing trend and will continue to be so in the future, so please take the following information into account if you are an online business owner or are planning on starting one up.
As an online retailer, it’s likely that most of your business interaction with customers is virtual, meaning that your public liability risk is probably quite low.
It’s a different story if your business has a warehouse or a similar facility, as this could mean that your staff members have contact with members of the public and could be held responsible for accidents and injuries.
On the other hand, business insurance Wisconsin insurers strongly insist on product liability coverage if you are planning on starting an online business. This type of coverage is often sold as part of a public liability insurance policy and is crucial if you are planning on selling items online such as jewelry, baby clothes or antique furniture, as you are responsible for any damage or injury the products may cause.
It’s important to know that even if you haven’t manufactured the items yourself, you could be liable for compensation claims if the products bear the name of your business, If you have repaired, refurbished or otherwise changed the product or if the manufacturer can`t be traced.
The internet means that supply chains can be long, international and with no face-to-face interaction, so if a client can’t identify the manufacturer or the manufacturer has gone out of business, the distributor can be held liable for any problem regarding the product.
Another important consideration business insurance Wisconsin advice on in terms of online retail insurance is stock cover. As any other businesses, online enterprises are likely to keep a fair amount of products in a storage place before shipping them out to customers. If something were to happen to this stock, stock insurance could cover the cost of replacement based on the cost price.
Employers’ liability insurance is another legal requirement that your online business has to include in its protection plan if it has any employees. If your online service does not provide products but rather services, you may also want to consider professional indemnity insurance as part of your policy.
Business insurance Wisconsin agents are aware that many insurance companies still refuse to provide coverage for online businesses and most lack products for e-commerce, the main reason being the international implications of selling imported products, making liability very difficult to trace.
Still, if you get coverage for your online start-up, most insurers will need to know exactly what you do, and more importantly, that you do it online.