Online businesses differ from their brick-and-mortar counterparts in ways that present unique challenges for insurance companies. An e-commerce business owner has the challenge of facing all the traditional risks that any business faces, plus those unique to e-commerce. Typical challenges include data security ― the most commonly publicized areas of exposure involve unauthorized access to customer data and/or the dissemination of customer data by accident or through fraud. For online merchants, it becomes an added obligation to protect that data. There are potential liabilities if that information is compromised or exposed. Business interruption caused by third-party providers is another challenge. At times, business may be interrupted when customers are unable to access the website because of disruption or denial of service. Business interruption can also occur because of disasters such as a fire at secondary support locations — your main supplier or your warehouse.

Insurance needs can vary across different types of online businesses. The business owner must do a careful risk analysis before buying the insurance cover.

Optima Edge:

Having worked with various e-commerce companies across stages of their life cycle, we understand the challenges of online business. Our experts are adept at translating the overall concepts of ‘harm to assets’ and ‘harm to others’ into the virtual world.

Our policy advice has been useful in cases of copyright infringements on Websites and lawsuits from customers whose shipments were lost or whose privacy was violated.