You may not realize that your online business needs insurance just as much as a brick and mortar business does. Online businesses are vulnerable to lawsuits and problems just like other businesses are, and the right insurance policies will give you the security of knowing that you are protected. Here are some reasons an online company needs coverage.

Protect your online business against:

Information Leak

It is your job to keep sensitive and identifying information about your customers safe. This includes credit card information and anything else your clients wish you to keep private. A hacker can get into your computer system and steal this information. It can then be sold to outside companies, and your clients could face serious consequences like identity theft.

If this occurs in your business, you will need help to cover the cost of any lawsuits clients bring against you as well as the costs of cleaning up the mess after you have been hacked.

Errors and Omissions

You can be sued if a client believes that you have not revealed important information about your business or the service you provide. Proper coverage can help you with any costs associated with this type of legal threat.

General Liability Insurance

Injury From Product

If you sell a product online and your client is injured by that product, you could be held liable, especially you are the person who made the product. You will need general liability coverage to protect you from any lawsuits that arise when a client believes your product hurts them.

Undelivered Service

If for some reason your company fails to deliver a service that you have promised to provide, an angry client could bring a lawsuit against you.

Damage to Client Property

You may have a client who believes that your company caused damage to their property. This may be technological equipment like a computer or a cell phone. You could be sued for the cost of that property and for additional damages like lost income or even suffering.


You can be charged with any kind of injury or loss a client has had that they attribute to negligence on the part of you or your employees. You need to protect yourself and your company from this kind of attack.

Employment Liability


If any of your employees claim that you discriminated against them, they could have grounds for a lawsuit against you. This may be discrimination in hiring, in payment, or in benefits, and discrimination lawsuits may be claimed because of race, gender, religion, and sexual orientation. If someone believes you have put them at a disadvantage due to one of these issues, you could be sued.

Wrongful Termination

Any time you fire an employee, you may be facing a wrongful termination lawsuit. If any employees believe they have been fired for reasons that are illegal, they can bring lawsuits against you.

Workers Compensation

If someone is hurt or has an accident while in your employment, you will need workers' compensation coverage to pay for their medical treatment, loss of wages, or other damages.

Online businesses are just as vulnerable as other businesses to lawsuits and losses. Contact Society Insurance Network today to get the coverage that you will need to keep your business strong.

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