Posted on May 19, 2014

Does Your Internet Business Need Commercial Insurance?

The Internet has made business opportunities come to life in a way no one ever thought possible. With global sales and communications increasing on a daily basis, most companies recognize the growth possibilities contained within this digital platform. So whether your company is solely online or also in a brick and mortar location, creating a safety net of commercial insurance protection is a must.

Many business owners with physical stores understand the necessity for general liability and property insurance to protect from slip and fall accidents or natural disasters such as flood or fire. It is simply a necessary cost of doing business. But in the virtual world of business, the need for commercial insurance might not be as apparent. Certainly there is an illusion of anonymity in this medium, but although harm might not be readily visible, the danger of risk still exists.

So what types of lawsuits or claims do Internet businesses face? There are plenty of online scams, deceptive business dealings, defective products and the like in the Internet world. Certainly, these situations require a plan of action that includes business insurance protection. But even more important is the fact that most online companies have made significant investments in their computer technology, software, website design and marketing strategy. Without internet insurance, a company also faces additional threats related to reputation including libel, copyright infringement, viruses and hacker attacks.

Another potential risk internet businesses face is loss of inventory due to theft, fire or other threatening event. Commercial property insurance provides protection for business personal property, furniture, equipment and inventory so that should damage or loss occur the property can be compensated for or replaced.

With so many possible areas of exposure for a lawsuit or claim, Internet companies could quickly find themselves in trouble if a large court award was granted to an injured party. Commercial insurance provides extra peace of mind so that companies can take care of running their businesses without fear of financial devastation should an unexpected accident happen.

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