Insurance for E-Commerce Businesses: What Are The Risks?


Although they face different risks, e-commerce stores need insurance just like brick-and-mortar establishments. E-commerce insurance covers financial losses and damage that may occur as a result of business operations.


Some of the common risks that e-commerce businesses face include:

 – Defective products that injure a customer or damage their property

 – Website data breaches that expose customer information

 – Vendor or supply chain issues that affect customer orders

 – Lawsuits related to a breach of contract with a client

 – Damaged or stolen merchandise


To protect your e-commerce business from potential lawsuits, accidents and disasters, you may need multiple types of business insurance. Most online stores should have general liability insurance and product liability insurance, which cover common risks that e-commerce businesses face. 

General Liability Insurance

E-commerce businesses should have standard general liability insurance. This covers bodily injury or property damage as a result of interacting with your business. It also protects against personal and advertising injury, including claims of libel, slander or copyright infringement made against your business.

Product Liability Insurance

Product liability insurance protects e-commerce stores from third-party claims of bodily injury or property damage caused by your product or service. This includes manufacturing defects, design flaws, or failure to provide adequate instructions or warnings. Product liability insurance also covers fees associated with lawsuits made against your business in relation to your product.

CTG: Personalized Business Insurance Solutions

The right business insurance can make or break your business. CTG offers personalized insurance solutions tailored to your unique needs, risk level, and budget. We make the insurance buying process simple and accessible to all. Get started by scheduling a phone call, virtual, or in-person meeting with one of our experienced insurance advisors. 

Have questions? We’re here to help.

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