It wasn’t so long ago that e-Commerce operators found it difficult to obtain the right type of California business insurance. There were several reasons for that – the risks for insurers were quite new and many saw the risks as being high. However, in the past decade, e-Commerce has boomed and this has given underwriters and insurers a better idea of the risks that e-Commerce businesses face, and how likely those risks are to become reality.
In 2011 a BOP (Business Owners’ Policy) can now contain two levels of cover that are well suited to e-Commerce operators.
Computer Operations Interruption
Some e-Commerce businesses have a surprisingly large turnover and because it’s all happening online an interruption to computer operations can bring the business to a sudden – and expensive – standstill. This type of coverage is designed to protect the business against loss of trade and additional expenses that are due to the interruption.
Electronic Data Loss
Loss of data can also present a significant problem and can be caused by a range of issues – perhaps the most obvious being an attack by a virus or a hacker.
Business owners who need e-Commerce coverage may be well advised to discuss their needs in-depth with an agent – e-Commerce business insurance in CA is still developing and your basic policy may need to be backed up with endorsements. You’ll also need to be well aware of particular exclusions.
