Business Insurance to Protect Your Online Sales

It always astounds me in conversation with small or home-based business owners, the number who feel that business insurance may not be necessary. I truly believe that it is because they are unaware of the potential risk they need protection from, and feel that it would not be affordable. Even if there were not affordable options available (there are!) I ask, “Can you afford not to have the protection?”

Let’s say for example that you sell a simple product through Etsy, Amazon or any other online marketplace, to earn a little extra money on the side. For simplicity sake, let’s say you are selling the wonderful, fictitious product – Widgets. These Widgets are soooo cool, that you know everybody will want them! So you setup your little online store.

Things You May Not Have Considered?

• Are you aware of any potential flaws in the design and manufacturing of this widget? You didn’t design or manufacture it – how could you have truly tested all scenarios?
• Have you considered how you will respond if someone is injured or property is damaged from use of your widget? A tactic for most lawsuit is to sue everyone related to the product and sale?
• If you are not found guilty, who will have paid for the legal bills to prove your innocence? If you are found negligent, who will pay for the settlements awarded?
• Didn’t incorporate your little side-business? That means that when you are sued and don’t have insurance protection, all your personal assets may be at risk.

These are just a few of the questions which you may not think to ask as you try to earn a few extra $’s. Why would you, you are not an insurance professional – you should Ask the Insurance Expert? Had you thought of it, you may have had a conversation with your Rhodes & Williams Insurance Broker who would discuss the risks, and affordable options to protect yourself. You may have discussed how product liability lawsuits may be one of the biggest dangers when selling through a third-party online forum, and the various ways to protect yourself through risk management and through business insurance protection.

Contact your Rhodes & Williams Small Business Expert to explore your options. It is definitely worth your time to consider your options in protecting yourself.