E-Commerce Insurance in California – CA

If you operate an e-commerce business, you invest in e-commerce insurance in California. e-commerce businesses are extremely common these days and account for more than 3.53 trillion US dollars.

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Similar to conducting any type of business, big or small, you safeguard your e-commerce business from damage, which is why you should get e-commerce business insurance.

E-Commerce Insurance in California

Reasons Why Your Online Business Needs Insurance in California

There are several reasons why your e-commerce business needs insurance including:

Data Breach and Data Security

Online businesses are susceptible to a data breach, which occurs when customer information is leaked.

Even if you’re just launching an e-commerce business, you’re bound to store personal customer information.

And it is not the amount of information you collect, losing even one entry could cause big damages for your company.

A data breach is not restricted to your customers but could happen to your employees as well.

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Let’s take a leading company as an example, the corporation leaked employee Social Security information in 2014.

This breach affected customer trust, which affected the company’s brand reputation and loyalty.

If your e-commerce business is not covered by the latest online security measures, it will cause expensive lawsuits. These lawsuits can result in damage reputation-wise, and monetarily.

You will probably not have the funds to settle these lawsuits, which is why you must have eCommerce business insurance.

DDoS Attacks

Have you noticed a rise in traffic to your website? Normally, a rise in traffic is a good thing, but not expected traffic may be a reason for concern.

Distributed Denial of Service, short for DDoS attacks are prone to e-commerce businesses, because they operate a business online, and are very cheap to execute.

DDoS attacks can cause a big loss in revenue and have costly effects on your e-commerce business.

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To prevent losses from DDoS attacks, you need e-commerce cyber attack insurance.

Cyberattack insurance is a relatively new type of insurance, but that is becoming popular quickly and for several great reasons.

However, getting the best cyber attack insurance could be a bit confusing, because there are many different types to choose from.

Crisis management is the most common type of cyber attack insurance and shields your eCommerce business from damages resulting from DDoS attacks.

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Product Liability Issues

Even you only sell digital stuff, it can cause damage to your consumers. Some good examples of product errors are big companies.

Due to product failure, these companies paid millions of dollars in lawsuits, which were covered with some type of e-commerce insurance.

You may think your stuff is extremely safe, but have no knowledge about the damage it can cause to others. Here you can find more information about e-commerce companies in California.


The cost of fraud for e-commerce businesses is a lot today than it used to be some years ago. There are different types of e-commerce fraud including card testing fraud, friendly fraud, account takeover fraud, and much more.

If you run an e-commerce store, you not only have to protect your customers from fraud, but you also have to protect your business from getting robbed.

Preventing fraud is tough, given that many times you have no control over how and when it happens.

When searching for the best e-commerce insurance in California, it is important to choose a company that provides protection against fraud.

Different Types of e-commerce Insurance Coverage in California

When commissioning the best e-commerce insurance company in California, you first have to opt for the type of coverage you desire to protect your business from damage.

There are many different types of e-commerce insurance coverages to choose from, most commonly:

General Liability Insurance

The is notably the common type of eCommerce insurance coverage available for your e-commerce insurance company in California.

Whether you pursue your online venture from your home or commercial space, you must get general liability insurance, and here’s why!

With regards to injury, like an e-commerce business owner, it is a good idea to check out e-commerce life insurance plans to shield your family.

General liability insurance protects your eCommerce business from third-party bodily injury and property damage claims.

So, if anyone visits your office, and suffers an injury, then the legal obligations, and potential fines will be paid for by your e-commerce insurance company in California.

It is important not to mistake e-commerce general liability insurance with your homeowners’ insurance contract.

While myriad homeowners’ insurance policies may cover your household physical items, they will not cover you from any fraud costs related to your e-commerce business.

This is why you need an exclusive e-commerce insurance policy.

Commercial Crimes Insurance

Commercial crimes insurance may be a bit confusing, but to point out briefly covers your e-commerce business from fraud generally from crimes committed by your workers or third parties.

These crimes can include robberies, fraudulent transactions, and embezzlement involving your e-commerce business.

Technology Errors & Omissions Insurance

Another type of e-commerce insurance to shield your business insurance is technology errors and omissions insurance.

This type of insurance brings together several different kinds of insurances including product liability and cyber insurance.

When you buy technology errors and omissions insurance, you protect your e-commerce business from product failure that causes threats to your customer.

How to Choose an E-Commerce Insurance Company in CA?

There are many factors to take into account when selecting the best e-commerce insurance company in California.

Company Reputation

The e-commerce insurance company you select should have a superior reputation.

When you’re shopping for the best e-commerce insurance company in California, you need to stay away from cheap e-commerce insurance companies in California, because these will not offer the right coverage you need.

It is also very critical to prioritize the coverage over the premiums as this may amount to big financial damage.

Read Your e-commerce Business Insurance Policy

When you do choose an e-commerce business insurance policy, it is crucial that you check the policy including the fine print for any errors.

If you don’t get any terms in the policy, then it’s wise to seek clarification from your insurance broker before agreeing on the policy. If you overlook doing this, then you may have issues when you file a claim.

Consider the Deductible

Most e-commerce business insurance companies in CA charge deductible. This is a price you will have to pay in the event you file a claim.

A high deductible may not be cost-efficient for your business, hence it is a wise idea to try and bargain with your insurance provider about reducing the deductible.

Final Thoughts

Investing in the best eCommerce insurance policy is a wise choice for your online business. There are many insurance providers to select when shopping for the best insurance provider including cost, reputation, and coverage amount.

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