5 tips to secure your online store
Finally, it’s time to go. The joy about the first orders received is great. But wait, haven’t you forgotten something? What about the security of your online store?
The right protection can be crucial to your existence. If something does happen, you will have to file for bankruptcy in the worst case. This thought can quickly dampen the initial euphoria. But with the right insurances you are optimally equipped in case of damage and can thus fully concentrate on the business.
With the help of 5 useful tips, we show you which insurances you absolutely need as an online retailer. absolutely need.
Tip 1: Public liability insurance is indispensable for you.
Public liability insurance covers damage to third parties or third party property caused by your business activities. Even if you have no customer contact as an online retailer, this insurance is existential. Why?
An example: A customer has purchased a shelf in your online store. Unfortunately, this is a defective product. Since the defect was not visible, the customer puts the shelf at home. The shelf collapses and the customer is injured. She complains about the product and demands that you pay her medical treatment costs as well as damages and compensation for pain and suffering.
In the damage example listed, you are covered by the product liability insurance included in the business liability insurance. In this case, the insurer provides the following services: It is first checked whether the customer is entitled to compensation. If the claim is justified, costs such as treatment costs will be covered. If this is unjustified, the insurer will defend the claims against you – even in court.
If you have purchased the shelf from a dealer abroad and are importing it into the EU, remember that in this case you are acting as a quasi-manufacturer. This means that you are also liable for the defective product.
Likewise, the business liability insurance offers you protection in the following case of damage: During a meeting, you accidentally spill a cup of coffee on the laptop of a conversation partner. The latter is annoyed and demands that you take over the damage. Thanks to the business liability insurance you have taken out, this property damage is also covered.
Tip 2: When money is at stake, pecuniary loss liability insurance protects you.
The pecuniary loss liability insurance, as the name already suggests, covers pure pecuniary losses.
Despite due diligence, it happens again and again, especially in online trading: one day, a warning letter arrives in the mailbox. You have unknowingly infringed copyright on your website. A picture on the homepage is unfortunately not license-free. Maybe the image was even advertised as free stock material on a dubious site and you got it from there with a clear conscience. But: Ignorance does not protect from punishment. The author is now claiming damages in the amount of several thousand euros. What now? If the claim is justified, the insurer will pay for the financial damage to third parties. In addition to copyright infringement, this can also include trademark infringement. Another good reason for a pecuniary loss liability insurance is the following case: A customer contacts you and demands compensation. He has ordered a product from your online store and has already paid for it. However, he claims that he never received his order. Unfortunately, you can not prove whether the package has reached him.
With a pecuniary loss liability insurance, the insurer takes care of this case. He checks the facts and pays for the damage.
Tip 3: Protect your inventory with contents insurance.
Contents insurance covers damage to goods and equipment caused by fire, tap water, storm or hail. This means that content insurance is relevant for you if you have your own warehouse and/or rent your own office. If a loss occurs due to one of the insured perils, the replacement cost of your goods and office supplies will be covered by the insurer. In addition, it is advisable to include business interruption insurance as an additional module in the contents insurance. This way you are also covered in case you have to close the online store temporarily due to the damage to your office or to the goods.
Here is an example: You have rented a storage room for the storage of goods. During the night, a pipe bursts. The entire warehouse is under water and your previously procured goods are damaged. You need to set the online store in the short term. This damage is covered by the contents insurance and the costs for replacement are assumed. In addition, you will receive your lost revenue due to the business interruption insurance.
Tip 4: Take precautions to protect against hacker attacks with cyber insurance.
The topic of cybercrime is becoming increasingly important. Currently, the danger of a cyber attack is still often underestimated. But a cyber attack can be expensive, which is why you as an online retailer should not do without cyber insurance. It’s important that you don’t underestimate the risk, because small and sole proprietorships are considered particularly vulnerable. Hackers often use automated methods to send a virus or a Trojan. In case of damage, the cyber insurance supports you. In addition to reimbursing you for lost revenue, the insurance also helps you recover lost data. Because regardless of whether you store the customer data yourself or have it stored via third-party providers, you are responsible for this data.
Cyber insurance offers you these additional benefits:
- Some insurers will provide you with a contingency plan in the event of a loss and offer cybersecurity training for your employees.
- In the event of a DSVGO breach, the insurance company will support you in informing your customers about the data breach. You will also receive useful information about data breaches. Important: Make sure that DSVGO violations are part of the cyber insurance.
- If your hardware is damaged in the event of a claim, the insurance company will replace it for you. The scope of services may vary from offer to offer. Therefore, inform and compare exactly which benefits are included in your cyber insurance.
Tip 5: In case of illness, private health insurance will support you.
As a self-employed online retailer, private health insurance can be an attractive option for you in addition to statutory insurance. You can decide to take out private health insurance regardless of your income. A private health insurance offers you numerous advantages, because the prices and benefits can be individually adapted to your professional situation. One possible advantage may be a financial one. If you have just started your own business, private health insurance can provide you with financial relief. Depending on your age, the costs may be lower than with statutory health insurance. For example, you can choose fewer benefits and a higher deductible at the beginning and thus be relieved financially.
Do you need all 5 insurances?
Now you’re probably wondering if you need all 5 of these insurances. Or, whether your existing commercial insurance is even the right one. You can get free advice on this from the insurance experts at Finanzchef24. Or you can use the possibility to compare individual insurance offers for your online store yourself. After all, comparing equals saving.
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