Affiliate marketing, blogging, or developing apps are all very real options for making a living and running an online business. Whether you’re doing it from your home or another private location, requirements, including carrying insurance, must be met. Find out what insurance you need and other necessities for running a successful company.
What is an All Online Business
Before you start considering what types of insurance you may need, it’s important to understand what is classified as an all-online business. These entities are operated completely online without any physical storefront for people to receive products or services. Digital marketing firms, subscription services, and consultation providers all fall into this category.
While operating an all-online business offers a plethora of benefits, such as little to no overhead, flexibility, and global reach, unique situations also exist. These risks require specific insurance coverage for an all-online business.
Insurance Requirements
In all, you can expect to be required to carry at least a few different types of insurance protection for your company. Here are a few of the most common:
General liability – protects from third parties claiming injury or damages. Dissatisfied customers may still make claims even without a storefront if they’re unhappy with your services or products.
Professional liability – protection from mistakes, negligence, or failure to complete services as contracted. Clients may claim that your services cause them financial loss, and this insurance protects you from losses if they make a claim.
Cyber Liability – this insurance is important to help protect against things like customer data loss. With cyberattacks and other digital threats, you want coverage for any legal fees, notification costs, or other expenses concerning cyber-attacks.
Product liability – If your product causes damage or injury, this insurance coverage protects you by covering you in the event your customer is harmed.
Commercial property insurance – you’ll need hardware and other business property to run an all-online business, and commercial property insurance protects these assets.
These are just a few of the types of insurance you may want to consider looking into if you’re growing an all-online business. It’s best to speak with a professional like one from Tivly to determine where your insurance needs are at.
Other Online Business Neceessities
For your all-online business to grow and thrive, you can’t leave out these other important necessities:
Planning and compliance: make a business plan and research to determine how realistic it is for your company to grow and if you’re capable of doing what it takes. Make sure to register your business and get any required licenses or permits.
E-Commerce and a website: next, you’ll need a domain name, a solid web hosting service, and a website. That’s where you will set up your online store.
Customer service and security:
Marketing: get all SSL certificates and cyber security to keep customers safe. Also, providing them with many customer support options helps make you look more trustworthy.
Maintenance and improvements: Monitoring your business and making improvements where necessary is how to get your business where you want to be.
Starting an all-online business is exciting and beneficial, but don’t forget its risks and challenges. Before hitting the ground running, be sure you are well prepared and have everything in place, including online business insurance coverage, to help you reach your goals.