All about business insurance for online retailers

There are almost 2 million online retailers in the U.S. today. While their products and services wildly vary, online retailers have some specific business insurance needs. With the right combination of coverage, they can handle the high costs of everything from cyber attacks to delivery disasters.

Have you launched an online retail shop? We’re big fans of small businesses like yours and want to do everything in our power to help you succeed. As your advocate, we’ve put together this quick guide. We also recommend a one-on-one insurance consultation with a licensed agent to find out if your online shop has special risks you didn’t know about – so you can feel confident you’re protected.

Pro tip: Get more than one business insurance quote. Insurance carriers vary in which types of businesses they prefer to cover. You can often get a better rate and coverage from a carrier who specializes in online retailers.

As a starting point, you’ll want to look into:

Cyber insurance

Increasingly, small businesses are targeted by cybercriminals. Online retailers are especially vulnerable to data breaches because they take credit cards and often store confidential customer information.

Cyber insurance can help you pay for:

  • Rebuilding your network and replacing lost income
  • Sending notifications to customers, compensating their losses and monitoring their credit reports (required in some states)
  • Handling crisis management and public relations
  • Paying regulatory fines and legal costs

Property insurance

If your physical products are damaged by fire, theft and other unpleasant surprises, this helps you repair or replace your inventory. If a storage facility you own is damaged, this helps you cover that too.

Business interruption insurance

If you can’t operate your online shop while you’re replacing all your inventory (see above), business interruption insurance helps compensate you for your lost revenue.

Product liability insurance

If you sell a product manufactured by someone else and a customer becomes ill or injured from using it, you could be legally liable – especially if it was made overseas and you brought it into the U.S. This helps you handle the legal costs.

Transportation insurance

If a product you’re shipping to a customer is lost, damaged, vandalized or stolen on the way to their doorstep, this helps you repair or replace it.

Workers' compensation insurance

Pays for your employees’ medical expenses and lost wages – which also shields you from employee lawsuits.

No online retail shop is exactly like yours

You may have specialized insurance needs. A licensed Mylo agent can help you figure out the best plan to protect you as an online retailer. Mylo is part of Lockton Companies – the world’s largest independent insurance broker – with 50+ years of experience. We help you compare quotes from leading carriers instead of selling our own insurance, which lets us give you an objective recommendation.

Just take a moment to fill out our form and a licensed expert will be in touch with your personalized consultation for your online retail shop.