ECommerce Insurance

Learn more on how to protect your business with ECommerce Insurance

ECommerce Insurance

Learn more on how to protect your business with ECommerce Insurance

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Why Insurance Matters

ECommerce Insurance can protect online stores from the risks they face by easing the financial burden in the event something goes wrong. Online retailing is quickly replacing brick-and-mortar businesses. The overheads are lower, the exposure is lower, and you also have the potential for your products to reach every corner of the globe.
E-commerce stores such as Amazon, eBay, and Shopify and Dropshipping arrangements are incredible platforms to market and sell your goods.

Does an E-Commerce Store need Insurance?
Like any business that distributes products, the risks still remain quite similar. An e-commerce store has exposure to many events that can be mitigated by insurance. Using a qualified insurance broker that specialises in this industry is the best thing you can do for your business.

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An online store that sells products can be held liable for property damage or personal injuries that their customers sustain from their product.

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Third Party Property Damage and Third Party Injury

E-Commerce businesses will benefit from a Public Liabilty Insurance policy to protect them from the financial costs when a claim is brought against them for property damage, or personal injury.

Products Liability

Products Liability will protect you from the financial costs of claims brought against you from injury as a resulf of the products you manufacture, retail, wholesale, or distrubute.

What's standardly excluded under a Public Liability Policy?

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Items sold to the USA & Canada

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Product Recall

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Injuries to your employees

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Pollution

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Asebstos

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Intentional Acts

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Advice and Recommendations

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Contractual Liability Cover

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Where in the world am I covered?

If your business is selling products which are being distributed globally, your insurance policies will need to reflect this. Generally, your Public Liability Insurance will extend to cover you worldwide, except the USA and Canada. As it’s common for Amazon Sellers to retail in the US, it’s extremely important that your public liability insurance policy reflects this. In order to be covered for claims brought against you in US and Canadian courts, your policy will need to include the US and Canada as part of your insured jurisdiction and included in your insured geographical limit.

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Cyber Insurance

The risk of cyber-attacks is quite significant for e-commerce stores. Cybercrime could result in major disruption to your operations and also profit.

Some major exposures include:

  • Data breach & fines and penalties
  • Cyber attacks including Ransomes and encryption of data
  • Loss of Data
  • Disruption if a supplier were to suffer a cyber event
  • Reputational Harm

A Cyber insurance policy can mitigate these risks however, your own internal processes will also play a large role in preventing cyber attacks.

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What is Transit Insurance?

Transit Insurance can protect your items from damages that happen whilst on the road, sea, rail or air. It can protect your items if they’re damaged whilst in transit in Australia, and also if they are damaged in the course of travel if you’re importing or exporting your goods.

Do I Need Transit Insurance?

If you are transporting your goods, a transit policy is recommended in the even that your items are damaged.

What does Transit Insurance Cover?

Transit Insurance extends to cover your items for accidental damage, theft, collision, damages whilst loading and unloading, and other perils such as fire and explosion.

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Accident Cover

Transit Insurance can protect your items that get accidently damaged whilst in transit

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Damage whilst in transit

Transit Insurance can cover your items for overturning, collision, and whilst being loaded and unloaded

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Fire, Perils & Malicious Damage

Transit Insurance can extend to cover your goods whilst in transit for events for fire, malicious damage, and other perils.

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Damage whilst in temporary storage

Transit Insurance can cover your stock in storage during the ordinary course of transit

What is typically excluded under a transit policy?

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Wear and tear

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Vermin

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Rust, Mould and Mildew

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Electronic and machinery breakdown

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Damages caused outside of transit

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Delay costs

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Confiscation by authorities

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Unexplained loss

How Morgan Insurance Brokers can help your online business

Morgan Insurance Brokers has been dealing with online businesses for over a decade. We know the risks and exposures you face, along with how to mitigate these with affordable insurance packages. Have confidence to trade in all corners of the world with an experienced Insurance Broker supporting you.

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Frequently Asked Questions

In order to obtain transit insurance, you will need to provide a summary of the items you’re transporting, where you’re transporting to and from, the value of each trip, and the total amount you’d be transporting in an annual period. Further information may be required depending on your individual requirements.

Product Recall insurance will pay for the associated costs involved of recalling a defective or unsafe product. Usually, this policy is designed to protect manufacturers. However, there could be an exposure to your business if you’re importing your goods. If you’re importing, you could be deemed the manufacturer/first and only point of contact if something were to go wrong. Depending on the agreement with your supplier/manufacturer overseas, this cover may need to be considered.

Fortunately, Business Interruption insurance was designed to protect your businesses turnover and profits. If an event destroyed your stock and disrupted your usual sales, a business insurance package in which you’ve elected to insure for stock cover and business interruption cover will comprehensively protect your business. It would replace your stock, pay for any increased costs to fast track replacing your stock, pay your ordinary expenses, and profits until your stock has been returned and your profit is back at it’s preloss levels.

Generally, having a Public Liability insurance policy of  $10,000,000 and listing Amazon as an interested party will be sufficient to deal with Amazon.

Please read Amazon’s Service Agreement for more information:

https://sell.amazon.com/blog/grow-your-business/amazon-stats-growth-and-sales

Monthly Instalments are available for your insurance policies when engaging Morgan Insurance Brokers.

Depending on the product, insurance can be obtained if you have a drop shipping arrangement with your suppliers.