E-Commerce Insurance? – (Other Coverage Options)
E-Commerce Insurance – Other Coverage Options –
Other coverage options are included on an e-commerce form,
found on your general policy.
There are many components to the insurance package, so review carefully
to ensure your business and operation is completely insured.
Gaps in business operations, no matter
if you own one commercial insurance agency,
or a dozen, the effect is felt the same.
Transportation Coverage of Business Insurance
There are many insurance coverage types to include on
your e-commerce package, as an example, transportation coverage.
This coverage is helpful in industries that sell products
and use transportation as their delivery method.
This is because the shipping process is how
the business connects product, to their customers.
Core Protection – Transportation Coverage
The core protection of this coverage would help with
ensuring coverage of products during transportation.
This is an important element, since the delivery of the product,
becomes more important, then the actual product itself, at this stage of course.
This obviously changes, once delivery is made, the client relates to product,
and enthusiasm ensues over product purchase.
Transportation Risk Protection
As you know, risks exist within any insurance package and should
be noted for further protection and awareness.
As an example, if a business was delivering a product to a customer through
a vehicle method, such as a car transporter.
During this transportation process, the
vehicle carrying the product was involved in an accident.
The product that was to be delivered to the customer, is now damaged and no good.
Under the transportation coverage clause, compensation for your business loss,
due to shipper error, would be covered.
Under this example, the incident would be covered, since the damaged
item was from a direct covered loss.
E-Commerce Insurance – Other Risk Protections
Other examples of risk protection include the following:
• Stolen property while in delivery
• Damaged property while in delivery
• Shipping errors
• Shipping delays
Always make sure to read your specific policy coverage guideline,
for exact definitions of coverage and terms.
Each insurance carrier may have varying underwriting guidelines
or may have gaps in coverage, unknown to you, the insured.
Another coverage also applies under these conditions,
which are defined as contents coverage.
This type of coverage has to do with the manufacturing of your goods or products.
This can also include a warehouse,
where this product is produced and manufactured.
If you fit under these specific business needs, then a comprehensive property
coverage can also protect tools and machinery.
This is a bonus if you do have tools and equipment stored
in the warehouse to process these goods.
Directors and Officers Insurance
This type of insurance coverage is to do with liability portion
of the actual business of directors and officers.
This coverage will kick in if an operational mistake occurred,
resulting in a loss for the company.
Many of your large fortune 500 companies as an example,
have some form of this insurance coverage.
E-Commerce Insurance – Insurance Liability Portion
This insurance liability is an added layer of protection of the
financial base and future of the business.
This is because, without this type of coverage, one loss,
could finically ruin or devastate a business, beyond recovery.
Tragically, many businesses or companies, who failed to
carry such protection, faced this fatalistic outcome.
When discussing the theme of e-commerce and business, an online business is,
subject to having employees.
This is because, online businesses, even though they
are running entirely online, still, need backend help.
This backend help comes in the form of labor, or in for illustration purposes,
an insurance agent or insurance representative.
For example, if an online insurance brokerage did all business transactions
and correspondence through online means, it would still need the help
of people to input the information of these online transactions.
So, is an online buyer, purchases commercial insurance, yet never sees
the agent or inside of a building, the process of labor still exists.
The online transaction, and exchange between online buyer and online business
must be processed and inputted into a management system.
There are management or policy management systems, that can automate
most of the traditional manual means of the sale of an insurance policy.
Physical Labor – The Backend of Operations
However, there is still a need for physical people to manually
process certain components of the buying and selling process of insurance.
This will continue for many areas within the industry.
People are still responsible for pushing the
advancement of technology and research in their field.
This should be a process of business synergy,
and foundational growth and movement.
In addition, supervisory roles to oversee the development and
maintenance of the business operation is a must.
The Workers Case – Insurance for Workers
As you can see, no matter if a business is online, or not, a need for employees is a must.
Having said that, this is when the coverage of workers compensation should be examined.
This is because, if an employee should be injured on the job,
the medical expenses and possible loss of income coverage would take effect.
Varying State Coverage – Workers Compensation
Each State has different laws and
regulations regarding workers compensation,
so makes sure to check your state laws,
where your business or employees will be conducting work.
Workers Compensation Road Map
In some states, this coverage is a requirement.
So, if you are a new business venture
or new to hiring employees for your business, make sure
to review your state labor laws first.
Also, make sure to check into the rules and procedures,
that surround employees and employers
This will help guide you in the right format when
implementing human resource channels, or departments.
In addition, it can reduce future business exposure in
the event an injury should occur to an employee.
Insurance, including workers compensation, serves a purpose as you know.
This purpose is to ensure the future protection of the business, and present peace of mind.
Yes, insurance exists to indemnify the parties involved, but in the short term,
it provides the protection one needs when running a business.
Comprehensive Insurance Protection
Insurance protection, especially for your employees, should not be your
the main priority in our business operations, it should rather,
be component factored into the entire process.
This is because, if, you only focus on the cover portion of the employee,
you fail to see the entire overview of protection your business must take to be successful.
Therefore, industry education and business research are, not only paramount but mandatory.
It engages business enlightenment and business intuition.
It can help steer you in the right direction when picking the correct
coverage plan and protection limits for another coverage add-on.
• Online hackers and threats
• Inside employee protection
• Client security
E-Commerce Insurance – Concluding Thoughts
These are just a few of the types of the insurance
coverages that can be addressed for online businesses.
These can be sorted through when you identify which areas,
actual hands will need to fill in the work order.
This is how you can assess at what level of coverage you need for your
actual business operations and possible loss worst case scenario.