What damage can an online business possibly need to be insured against? If you’re not shipping physical goods to customers or visiting them in their homes, surely insurance is an unnecessary expense?
Wrong.
Read on to find out why your online digital business needs a robust insurance policy.
Data breach
Dealing with clients primarily through online communications can mean that sensitive information is shared via this method, such as client and customer data. It’s important to be insured should a breach of that data inadvertently take place, for example, a document shared with the wrong person or email addresses disclosed to other recipients of a communication. If this type of breach should occur, client details may be compromised and you will be thankful for a policy that covers any claims they may make! Without the correct insurance, this could be a costly process.
Business interruption
One crucial aspect of working solely online is the reliance on technology. Should any part of this fail and you are unable to work, insurance can cover you for business interruptions.
Employers liability
If you employ staff, whether temporary, part-time or full-time, you will need to have an Employers Liability policy, which protects employees even if they work remotely.
Contents cover
Covering your office contents and equipment is crucial — in the event of damage or theft, a policy will cover repairs or replacements. If you aren’t covered, you will have to pay for these expenses out of your own pocket.
Extras
Specialist cover is available, sometimes as an add-on to an existing policy, although some providers offer it as standard. This include aspects of cyber insurance, such as media liability, covering you if anything you post online gets you or your client into trouble. This can include using a stock image without a license or making unfair comparisons to a competitor’s product. Without the proper insurance in place, these seemingly small errors and omissions could lead to a huge cost for you and your business.
