Running an Online Business From Home? Here Are Five Insurance Questions to Ask

These days, it’s easier than ever to start an online business, whether you sell through your own website, an online marketplace or social media. 

While operating online does not automatically mean you are legally required to have business insurance, the risks you face can vary depending on what you sell and how you work. 

With that in mind, here are five insurance questions to ask. 

1. Do you sell physical products? 

If you make, import or sell physical products online, product liability insurance can help protect your business against certain claims if a product causes injury or property damage. 

This can include legal and compensation costs, subject to the cover provided. 

2. Do you keep stock or equipment at home? 

If you store stock, packaging or business equipment at home, don’t assume it is automatically covered by your standard home insurance. 

Check your policy and let your insurer know how your home is being used. Business contents or stock insurance can provide protection against risks such as fire, burglary or theft. 

3. Do you meet customers in person? 

Selling online can still involve face-to-face contact, whether customers collect orders from your home or you attend markets, fairs or pop-up events. 

In these situations, public liability insurance can help protect against certain claims for injury or property damage connected with your business activities. The extent of cover will vary between policies. 

4. How dependent is your business on technology? 

Your website, online accounts and customer information may be essential to keeping an e-commerce business running. 

A cyberattack or data breach could result in costs relating to system recovery, lost trading time or legal expenses. Cyber insurance can help manage some of the financial impact associated with these incidents, where covered. 

5. Do you use a vehicle for your business? 

If you use a car or van for deliveries, transporting stock or attending markets and events, make sure your motor insurance reflects how the vehicle is being used. 

Your existing policy may need to include appropriate cover for business use. 

The bottom line 

There is no single type of insurance that every small online business needs. The right cover will depend on the risks involved in how your business operates. 

Whether you are a sole trader selling products online or running a small e-commerce business from home, it is worth making sure your insurance reflects the activities of your business. 

If you are unsure, speak with your insurer or insurance intermediary to make sure you have cover that suits your circumstances. 

Need More Assistance? 

If you have further questions, you can contact Insurance Ireland’s Information Services team: 

Email: feedback@insuranceireland.eu