Welcome to the Coverdash insurance blog. Here you’ll find valuable articles tailored to your business needs, so you can be ready in a dash for whatever comes next.

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Cyber Security Attacks are Rampant. Is Your E-commerce Business Prepared?

Whether you are new to the e-commerce world, or have been in business for a long time, it is important that your company is protected online. According to the 2022 Cost of a Data Breach Report by IBM and the Ponemon Institute, the average cost of a data breach is about $4.35 million dollars. This takes into account legal costs, regulatory costs, and loss of brand equity and customers. It’s enough to put a small business out of business…forever. Is Your E-Business Prepared for a Cyber Security Attack? E-commerce businesses are particularly at risk to threats and cyber-attacks since all of their transactions occur online. A survey by CloudBees found that 93 percent of executives are prepared to deal with a ransomware issue or cyberattack. However, 45 percent admit their security software is not sufficient to handle a cyber attack and 64 percent would not know who to contact first if their website was attacked. If your business does not have a plan of action regarding cyber-attacks, it is time to put one in place. Types of Cyber Security Attacks The following are ways that your e-commerce company’s security could be compromised: Malware: Malware is dangerous software that infects a company’s devices and steals data or causes damaged. This can be transmitted through email attachments, visiting websites, or access to the actual device. Ransomware: When a hacker encrypts a company’s data and demands a ransom to correct it, it is referred to as a ransomware attack. These can be very costly when the ransom and any damage control afterwards is considered. Spam: Spam are unwanted emails that are sent en masse to company employees. These emails may contain malware or links to malicious websites. DDoS: A DDoS or Distributed Denial of Services happens when a company’s server is overloaded with requests from hackers. This type of activity can crash the entire website. Phishing: Phishing tricks employees into clicking on links or attachments in emails or text messages which then can install malware or steal information. Since there are so many ways that an e-commerce company can be attacked, it is imperative to safeguard your company against a security breach. How to Improve E-commerce Cybersecurity Most companies could benefit from making improvements to their security processes. There are multiple solutions that can help ensure that your business is protected. Data Protection: Data is at the center of every business transaction. All online data must be secured so that it is not compromised or leaked. The equipment used can help to determine what resources are needed to create a highly secured connected system as a less secure data system can make a cybersecurity attack easy. A system that is connected to the public internet requires a higher level of security since it is easy to find and attack while a system that is isolated from other networks has a much lower risk of a security issue. Backup Data. Because data is so important, it should be backed up regularly to make sure it is not lost in an attack. When data is backed up, all of the information is hosted off-site, so even if the company’s devices are compromised, the data can be recovered. Educate Employees. Employees should be made aware of how to identify cyber security threats, and what to do if they suspect their device has been compromised. Internal employees should be trained on security procedures, such as securing passwords and maintaining current anti-virus software. Routine training can help protect against security breaches. Use Strong Passwords. The responsibility of keeping customers’ information safe lies with the online retailer. Ask customers to add special characters, symbols, and numbers when creating a password. Strong passwords are an easy way to protect a company’s information internally as well. Employees and upper management should change their passwords regularly to avoid a hack. Use a Secure E-commerce Platform. E-commerce websites should only be hosted on certain platforms. One that supports sophisticated object-oriented programming languages is ideal. There are many options for platforms that integrate easily but offer high security. A strong SSL (Secure Sockets Layer) authentication for web and data protection will ensure the security of all online transactions. A third-party will not be able to understand the information due to the encryption. It also helps the customer trust in the website’s security. Take a Complete Approach with Insurance.  Layering security is a good way to keep an online business safe from cyber attacks. A complete process approach is necessary to handle cybersecurity threats. Prevention, detection, containment, and recovery are all important parts of the process. Most importantly, getting the proper cyber insurance in place will protect your business from any cyber related risks. Cyber insurance coverage can help you recover faster if you are a victim of a security breach. There are several options that can cover everything from the removal of a virus to the reprogramming of devices and access points. Have a Business Continuity Plan to Cover Cyber Attacks A business continuity plan lays out the steps to follow so your business can resume operations after a disruption like a cyber-attack. While this won’t prevent cyber-attacks, it can lessen the amount of risk a business experiences. Protecting your business against cyber attacks should be a priority for your entire business. Coverdash can help you get the best policies to protect your e-commerce business, including general liability and cyber insurance in case you are hit with a cyber security breach.  Our team of insurance experts will find your business the best coverage at the most affordable rates to best fit your business’s needs, and can provide coverage within minutes. We’ll also assist you in getting your COI (Certificate of Insurance) on your e-commerce platform, so you remain complaint with platform requirements. Contact us today to discuss your options for insurance coverage.
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7 Reasons Your E-commerce Business Needs Insurance

Does every e-commerce business need insurance?  Insurance is necessary for any business, regardless of size or industry. Today, more and more people are turning to the internet to shop online and conduct business. Online retailers have risks and liabilities just like any other business and need to make sure they are protected. What is E-commerce Insurance? The tremendous growth of the e-commerce space has meant that insurance companies have created policy options specifically designed to protect e-commerce merchants. There are plenty of nuances when it comes to e-commerce businesses so insurance should focus on the risks that your specific business faces. For example, a company that manufactures their own products should have product liability insurance as part of their coverage. Separating e-commerce insurance from general commercial insurance makes it accessible to businesses that handle international shipments, customer relations, and online liabilities. E-commerce insurance policies protect against the specific risks an online company might deal with. What Does E-commerce Insurance Cover? A standard property and casualty insurance policy might not cover issues that arise for your business, such as damage to inventory during a natural disaster. E-commerce insurance covers a business should they not be able to sell their products online due to a covered risk. This is especially important should a cyber-attack, virus outbreak, or other hack occur. Commercial Property/General Liability:An e-commerce policy can incorporate these coverages to protect against property damage or injury on the premises of the property. Product Liability: Online retailers that manufacture or import products should be protected in the event that the product causes an issue or harm a customer. E-commerce insurance takes care of the product legally and can cover any incurred medical expenses for the customer. Cyber Liability: If an online business is the victim of a cyber-security attack or data breach that results in data loss, an e-commerce insurance policy will cover the cost to repair the data system as well as any legal fees to resolve the situation. Why Your E-Commerce Company Needs Insurance There are several important reasons why every e-commerce business should carry insurance. ·       Marketplace requirement. Many marketplaces including amazon are now requiring sellers that hit a certain sales threshold, to have an insurance policy in place before continuing to sell on their platform. Not having the right insurance coverage in place may result in your business being suspended from selling on many marketplaces. ·       Coverage for Legal Expenses.  The risk of being sued is part of running any business. E-commerce businesses are no exception. Insurance that covers legal expenses can be used in any situation in which the business is brought to court. This covers legal fees as well as damages that are awarded to the plaintiff. The high cost of legal fees could put an e-commerce business in bankruptcy. ·       Protection from Defective Products. Defective products can cause injuries to customers, which creates a risk to e-commerce businesses that can be held responsible for these injuries. In 2021, 11.1 million consumers were treated in emergency room hospitals due to product injuries. E-commerce insurance will cover the cost of legal fees, settlements and judgments as well as medical bills of the injured consumer. ·       Protection from Supply Chain Issues. E-commerce businesses rely heavily on their supply chains, which have become increasingly complex. Suppliers send raw materials that are manufactured and then send to the customer as a final product. There are many risks along the supply chain from breached contracts with the suppliers to goods that are damaged in transit. Insurance can protect against supply chain issues such as damage to goods, fraud, stolen goods, and contract breaches. ·       Inventory Protection. If your e-commerce business sells goods, inventory protection is important. Lost or stolen products mean a loss of income for an e-commerce business. Insurance is also necessary when inventory is damaged in a fire or natural disaster. E-commerce retailers need to pay for replacements and additional shipping costs for any lost or stolen items. There can also be damage to the e-retailer’s reputation if they are not satisfied with the reimbursement process. Insurance can mitigate these financial risks by reimbursing for replacements or coverage for legal fees. Tip:  Base your coverage on your projected inventory for the next year, not what is currently in stock. ·       Website Coverage. A business can temporarily shut down for several reasons. When an e-commerce website gets shut down, even for a short period of time, the company can lose income. If your website is built on a platform that is hosted by a third-party provider, they are not responsible for protecting your business in the event of a cyber security breach. E-commerce insurance can minimize the financial damage that occurs when a website goes down. ·       Protection Against a Cyber-Attack. A cyber-attack is a serious risk for an e-commerce business. A data breach will expose sensitive information, such as a customer’s credit card number. A hacker can use this information for identity theft or to make fraudulent purchases. On a larger scale, a data breach can result in loss of data or the shutdown of a business’s website. While this can be a costly attack, e-commerce insurance can protect a company from financial losses associated with a cyber-attack. Insurance policies reimburse companies for lost data, revenue, and customers, and can also take care of the cost of re-establishing the data or website. E-commerce data loss coverage varies from one policy to the next but is usually in the large range of $1,000 to $50,000 worth of coverage per customer. Getting E-commerce Insurance E-commerce businesses face numerous risks from manufacturing to shipping products. While it is not possible to eliminate all risks, insurance can help to protect your company against these events and can be customized for your company’s size and policy needs. Coverdash will provide your business with customized policies to protect you against risks. Our  insurance experts will find your business the best coverage at the most affordable rates to best fit your business’s needs. We are available to discuss how we can best protect your e-commerce business against risk and loss.
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How Much Does Freelancer Insurance Cost?

Insurance can provide you with the protection and peace of mind to grow and scale your freelance business. While peace of mind is priceless, it doesn’t help you set a budget for your freelancer insurance costs. So we’re rounding up some of the most popular policies for solopreneurs and home-based businesses so you can understand the costs associated with protecting your business. No time for guesswork? Request a personalized quote for freelancer insurance from Coverdash to find out exactly how much it will cost to get the coverage your freelance business needs. How Much Does General Liability Insurance Cost? General liability insurance is the most common insurance protection for businesses of all sizes, including freelancers, solopreneurs, and home-based businesses. General liability (GL) is meant to shield your business against third-party injuries, property damage, and advertising injuries, like slander, libel, and copyright infringement. Did you know? Some freelancer marketplaces, such as Fiverr or Upwork, may require you to carry general liability coverage before you can list your services. Fiverr, for example, requires you to carry adequate general liability insurance to cover the more common risks appropriate to the services you offer. General liability insurance for freelancers is more affordable than you may think — a Hiscox survey of 50,000 small business owners revealed the average cost of general liability is around $30.00 per month. How Much Does Professional Liability Insurance Cost? Another common freelancer insurance policy protects your business against lawsuits from clients who claim they’ve suffered a financial loss due to alleged negligence or mistakes from your work. Professional liability insurance is particularly popular with freelancers who provide a service or offer advice and consulting to clients. If you’re a service provider or consultant, such as an IT professional, website designer, graphic designer, photographer, accountant, or financial consultant, you may want to protect your business with professional liability insurance (also known as E&O or errors and omissions insurance). Whether you’re at fault or not, professional liability is intended to help cover legal costs in the event of a lawsuit from an unsatisfied client who feels you’re responsible for their financial loss. The median cost for professional liability insurance is around $60 per month. Most small businesses and freelancers invest between $500 - $1,000 annually for the peace of mind of this service-based business protection. How Much Does a BOP Policy Cost? So far, each freelancer insurance policy averages less than $100 per month, a price most solopreneurs could easily afford. However, when you need multiple coverages to protect your business, the cost of freelance coverage can add up. A Business Owners Policy (BOP) provides a cost-savings benefit for small business owners who need multiple policies to protect their business. BOPs typically combine the protection of general liability and commercial property into one packaged policy that costs less than purchasing them separately. Combining these two policies into one BOP bundle could cost you an average of $57 per month, although your exact costs could vary depending on how much coverage you need and whether or not your BOP bundles in additional protections as well. How Much Does Cyber Liability Insurance Cost? Many freelancers can benefit from the protection of cyber liability insurance, a policy designed to protect your business in the event of a data breach or data loss. Advances in technology allow many freelancers to work wherever a laptop and WIFI network is available. “Digital nomads” is a term used to describe the intrepid explorers who run their freelancing businesses as they wander from one (often exotic) local to another. While other freelancers may wander no further than the local coffee shop, the data breach risks remain the same. Cyber liability insurance can help protect your business from the costs associated with a data breach or hack if you handle sensitive information such as credit card information, client data, or personal information. Cyber liability is becoming increasingly popular with IT professionals and other freelancers in the technology space. The median cost of a cyber policy is around $140 per month. Get a Quote for Freelancer Insurance from Coverdash Coverdash provides insurance solutions for freelancers, solopreneurs, and home-based business owners. We specialize in freelance insurance, insurance for ecommerce sellers, and coverage for small businesses, and we can provide a fast and accurate insurance quote from top-rated carriers that’s tailored for your specific business needs. Request your quote today.
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How to Start Selling on Shopify

Ecommerce offers an opportunity to earn from anywhere, and it’s a booming business. In the U.S., ecommerce sales are expected to reach the $1 trillion [] mark in 2022. If you want to grab your portion of the trillion-dollar ecommerce market, Shopify is the perfect platform to launch your ecommerce empire. What is Shopify? Shopify [] is a cloud-based ecommerce solution that allows you to set up an online store, manage products, and sell across multiple channels. The only thing you need to run your ecommerce business with Shopify is an internet connection; the platform handles software and server upgrades and maintenance on your behalf. With Shopify’s app store, you can layer on additional products, tools, and services to customize your ecommerce experience. Before You Start Selling There are a few decisions you’ll want to make — and steps to take — before you launch your Shopify ecommerce store. Choose a Selling Model There are so many ways to earn from ecommerce. Some people source products and store/ ship them to customers themselves with a wholesale [] model. Others decide to dropship [] products, which means a third party handles the storage and shipping of products. Maybe you’re a creative type, and you want to explore print-on-demand [] selling. You could even create a store based around an affiliate marketing [] model, where you send customers to other websites to make purchases while you sit back and earn commissions from every order. Decide what selling model will work best for you before you start your Shopify store setup. Create Your Business Identity What will you call your new ecommerce business? What will your store name and domain be? Make a list of possible business names and then use a domain registrar like GoDaddy [] to check on the availability and purchase your domain name. Once your business name and domain are settled, create a logo for your business using a free design tool like Canva [], or hire a graphic designer from a freelancer platform like Fiverr [] or Upwork [] to help you create your visual identity (logo, brand colors, and other design elements). Launch Your Business Will you operate your business as a sole proprietorship, an LLC, or will you form a corporate entity? Choose a business structure [] and complete all necessary paperwork to launch that business. You’ll also want to register your business [] with any applicable state and local governments (if required), get your state and federal tax ID numbers [] (also known as an EIN, or employer identification number), and open your business bank account. Insure Your Business When you run a business, you open yourself up to financial risks. Business insurance [] helps safeguard you against financial losses as you build and grow your ecommerce business. Depending on how you structured your business, ecommerce insurance could protect your business and your personal assets. Some of the most common types of coverage to protect your ecommerce business include: * General liability insurance * Product liability insurance * Professional liability insurance * BOP (business owners policy) * Workers’ compensation insurance — required by law if you hire employees Get a quote for ecommerce insurance from Coverdash. We specialize in ecommerce insurance for Shopify sellers and can help you determine the best coverage amounts to protect your new business against lawsuits and losses from an unexpected event. Request your quote today. Now that you’ve launched your business, it’s time to start selling on Shopify! How to Start Selling on Shopify Shopify offers sellers a free 14-day trial, so you can set up your shop and start selling for free. Build Your Store Use Shopify’s easy drag-and-drop store builder to easily create your online store without the need for a professional website developer. Choose one of Shopify’s free themes or upgrade to a premium one. Customize your themes easily by changing fonts and colors, downloading apps from the Shopify App Store [], and uploading your images to your store. Browse Shopify themes. [] Choose Your Channels Shopify makes it easy to set up an online storefront to sell your products, but your selling options don’t stop there. The ecommerce platform also allows you to sell products across a variety of channels, including: * Facebook and Instagram * TikTok * YouTube Shopping * Google * Ebay * Walmart Choose your sales channels []and expand your business. Add Your Products It’s time to add your products [] to your store. For each product, you’ll need: * Product name * Product description * Images and videos of the product Tip: When you’re creating a product description, it’s helpful to understand how SEO (search engine optimization) works. SEO is the practice of helping search engines (like Google) understand what your product pages are all about and knowing what search terms people use when they are looking for a product like yours. If this concept is new to you, check out the Beginners Guide to SEO from MOZ. [] Market Your Business Now that you’ve built it, don’t sit around and wait for people to find your Shopify store and products. Take action and start marketing your business! Shopify offers marketing tips [] and tools for ecommerce sellers so you can attract the right customers to your store. Create a marketing plan and take action daily to get more awareness for your brand and products. Create a Great Customer Experience When orders come through to your Shopify store, be sure you’re creating a great experience for your customers. Fulfill orders promptly and use Shopify’s native tools to send customers order confirmation, shipping tracking, and other order updates. Communicate and set realistic expectations for shipping times — don’t let someone think their order will be delivered next-day if it will take two weeks to reach them. Building a lasting and profitable ecommerce store means thinking of your customers first. When customers love your products and services, they come back to your store to buy again, tell their friends, and leave great reviews for future customers. Are you thinking of starting an ecommerce business? Get an insurance quote from Coverdash in minutes. Our agents can help you understand the risks that come from selling online and advise you on the best ways to protect your brand and your business. Request an insurance quote from Coverdash today.
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Answers To Your Top Small Business Insurance Questions

No matter what phase of business you’re in, protecting your business against financial loss is always a priority. Business insurance can help ensure you keep your hard-earned profits where they belong. If you have questions about insurance for your small business, look no further. We have answers to the top questions asked by business owners so you can keep your business and financial assets protected. Who Needs Small Business Insurance? Small business insurance protects small businesses across every industry, including freelancers, e-commerce merchants, and any small business. The Small Business Association (SBA) defines a small business as a for-profit business that meets certain requirements for annual receipts and the number of employees. While that standard varies across industries [], the typical threshold for small businesses is fewer than 1,500 employees and a maximum of $38.5 million in average annual receipts. Sole proprietors, LLCs, and corporations can all be considered “small businesses.” There is no such thing as “too small” for insurance; if you are operating a business, you can benefit from the risk-protective benefits of small business insurance. Why Do I Need Small Business Insurance? When you run a business, you risk lawsuits and financial losses resulting from your business operations. Imagine if a customer slipped and fell on the floor of your coffee shop, resulting in large medical bills. Or if the delivery person for your flower business crashed your business vehicle into another car while making their delivery rounds. Your products could injure a customer, or your consulting advice could lead to a client’s financial loss. There are a million different ways your business operations could lead to injury, property damage, financial loss, or even a data breach. Small business insurance can help protect your finances in the event of an unexpected or unforeseen incident, helping you keep your hard-earned money in your bank account. In some cases, small business insurance could help protect your personal assets, too. For example, if you’ve structured your business as a sole proprietorship, you could be personally liable for your business's debts, losses, and liabilities. There is no legal separation between you and your business. Debts, liabilities, and losses stay with your business for some LLCs and corporations. But one slip and fall claim or accident could mean the difference between keeping your doors open or closing up shop for good. What Insurance Does My Small Business Need? There are a number of insurance policies designed to protect your small business. While your insurance needs may vary depending on your type of business and industry, below are the most common types of insurance policies that any business would need in order to be protected. General liability is a type of business coverage that covers third-party injuries, property damage, and advertising injuries, including claims for libel, slander, and copyright infringement. That slip and fall accident at your shop is included in this coverage: general liability is designed to cover the medical and legal costs associated with someone getting injured as a result of your business operations. Professional liability is a type of business insurance that’s meant to protect you against claims that your service, advice, or consultation resulted in a financial loss for your client. Professional liability is also known as errors and omissions (E&O) coverage, and it’s meant to cover legal costs and claims if a client alleges that your mistakes, omissions, or oversight resulted in a financial loss. Product liability is a business insurance policy designed to protect you as the manufacturer or seller of a product. If a client is injured as a result of your product, then you’ll want this coverage in place to help cover the costs associated with a claim for a defective product that you make or sell. It helps ensure you won’t have to pay out of pocket for medical bills, legal fees, and any judgments or settlements from a defective product lawsuit. BOP (business owners policy) is a cost-effective way to bundle together multiple business insurance policies for one lower price. BOPs typically combine general liability with commercial property coverage, however, you may be able to tailor a BOP and add additional coverages for your business. By bundling separate policies into one BOP package, business owners typically pay less than if purchasing these as separate policies. Cyber liability insurance is designed for business owners who handle sensitive information, such as customer information, credit card numbers, or sensitive client information. Cyber liability is intended to cover the costs of credit monitoring, notifying customers of a breach, legal fees, and reputational damage if your business ends up in a data loss/ data breach situation. Workers compensation insurance is designed to protect the hardworking people who help your business grow and succeed. Workers’ comp covers your employees’ illness or injury if they get sick or hurt while performing their jobs. While many business insurance policies are optional, workers compensation is one of the few types of coverage required by law in most states. If you hire any employees, whether part-time or full-time, you’re likely required to cover them with workers compensation insurance. See a state-by-state guide to workers’ comp requirements. [] Is Insurance Required To Run My Small Business? Like we mentioned above, some insurance policies are required to operate your small business. Workers’ compensation, for example, is required by law in nearly every state if you have employees or if you are an owner on the business payroll. Other policies, such as general liability insurance, may be required in certain instances. * A client may require you to carry general liability coverage in order to bid on a job * A jobs platform like Fiverr may require you to carry GL in order to list your services * An ecommerce platform like Amazon or Walmart may require you to carry GL to sell online In other instances, you may be “required” to carry business insurance if you want to be covered for a claim. For example, if you are using your personal auto for business purposes, you’ll need to have commercial auto coverage to cover any accidents or injuries that result from you driving for business purposes. If you are involved in an auto accident while using your business-owned vehicle, or if you or an employee is driving your vehicle for business purposes, your personal auto coverage will not cover your claim. Where Do I Find Small Business Insurance? Shopping for small business insurance can often feel overwhelming. Where do you start? Coverdash specializes in insurance for small business owners, freelancers, and ecommerce businesses. Our small business professionals shop through insurance products from top-rated carriers in order to find the right coverage for your specific operation at rates your small business can afford. Our entire team is dedicated to helping protect your small business as you grow and scale, so you can focus on what’s coming next for your team rather than worrying about one accident, injury, or unexpected event sending you off track. Request a quote for business insurance from Coverdash and start protecting your small business today.
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How to Make Money Selling on Amazon in 5 Easy Steps

Amazon is one of the first places people look when they have something they want to buy, and 9 out of 10 adults have gone to Amazon to price check a product. Amazon’s customer service and fast shipping has made it the go-to ecommerce destination for online shoppers, and that makes this platform the go-to ecommerce platform for sellers looking to start an ecommerce business. Have you been considering selling on Amazon? If you’re ready to start making money through this ecommerce platform, here are five easy steps to get started with Amazon selling. Choose Your Amazon Seller Business Model Amazon sellers have different models for earning on the platform. According to Junglescout’s 2022 Amazon Seller Report [], the most popular business models on Amazon in 2022 are: * Private label – 59% * Wholesale – 26% * Retail and online arbitrage – 26% * Dropshipping – 10% * Handmade goods – 8% Private label [] typically involves creating your own brand and then adding your brand name and logo to a product. Don’t worry, you won’t have to invent something completely new and innovative to go the private label route. You can select a product and source a manufacturer who will add your logo to their product and packaging. Wholesale [] businesses source bulk products from a manufacturer at a discounted rate and then resell those products at a retail price on Amazon. You are likely selling the same products and brands as other sellers when you go the wholesale route. Retail and online arbitrage [] is where many sellers begin their Amazon sales journey, especially if they don’t have a current brand or previous e-commerce experience. With retail and online arbitrage, you source products directly from stores and websites and then resell those products through Amazon. If you love shopping for amazing discounted deals, you could buy a deeply discounted item and then resell it at its regular price (or higher) via Amazon. RA and OA is a popular starting point because of the low-cost barrier to entry. Dropshipping [] is a popular business model for ecommerce sellers who don’t want to manage physical inventory. With a dropshipping model, your products are kept at a third-party location. When you receive an order through your online store, you initiate that third-party dropshipping partner to pack and ship the inventory to your customer. Amazon allows you to dropship with them, even if you’re not selling your products on the Amazon platform. Handmade goods [] is a new category on Amazon, and it’s allowing creators to make and sell handmade and crafted items similar to Etsy’s platform. Amazon has an artisan application and audit process to ensure they’re building a shop of genuinely handcrafted goods. They’ll waive the monthly Professional Selling Fee ($39.99) for all approved artisan sellers. FBA vs. FBM In addition to choosing your Amazon seller business model, you’ll also choose your distribution model: either FBA (Fulfilled By Amazon) or FBM (Fulfilled By Merchant). With FBA, you’ll have your goods delivered to Amazon’s warehouses, and Amazon will store your goods and then pack and ship them when an order comes in. Amazon will also handle customer service and returns. This is how you get your products to be Prime and eligible for fast shipping. If you choose FBA, be aware that you will have to pay monthly storage fees and shipping fees to Amazon in addition to any selling fees. With FBM, you will be 100% responsible for storing, packing, and shipping your products to customers. You can store and ship yourself or outsource this to a third party. Either way, you’ll be responsible for meeting Amazon’s service levels related to shipping and orders. In addition, you must provide customer service and returns processing for FBM orders. While FBM gives you more control over your inventory and fewer Amazon fees, longer shipping times and the inability to show up when the Prime filter is turned on could negatively affect your sales. Understand Amazon Seller Requirements Selling on Amazon is a legitimate business model, and you will want to treat it as such. That means fully understanding Amazon’s seller requirements and putting things in place to ensure your business is in place, such as business documents, tax IDs, and insurance. Business Documents To start, a number of documents are required to sell on Amazon USA, including your business information, tax ID, and state tax ID. If you haven’t already done so, now is a good time to set up your business and take these crucial first steps. Business Insurance Amazon sellers who are Pro Merchants and sellers with gross sales over $10,000 in a single month are required to carry business insurance. According to the Amazon Services Business Solutions Agreement [], sellers who meet these requirements must carry a minimum of $1M per occurrence and $1M aggregate limits of commercial general liability insurance and product liability insurance. Do you need commercial insurance for your e-commerce business? Coverdash helps ecommerce business owners meet the insurance requirements set by Amazon and other popular selling platforms. We specialize in e-commerce insurance solutions, and our customer service team will help you find the best rates from top-rated carriers, as well as submit proof of insurance (also known as a certificate of insurance) to the platforms on your behalf so you can worry less about insurance and focus more on selling. Get an e-commerce insurance quote from Coverdash. Create an Amazon Seller Account Once you’ve gathered all the necessary documents, it’s time to create your Amazon Seller Account. [] Before you sign up, make sure you’re ready with the following: * Business email address or Amazon customer account * Internationally chargeable credit card * Government ID (identity verification protects sellers and customers) * Tax information * Phone number * A bank account where Amazon can send you proceeds from your sales Choose Your Selling Plan When you first create your Amazon seller account, you can choose between two different seller plans: the professional selling plan and the individual selling plan. The professional selling plan costs $39.99 monthly. With the individual selling plan, you will be charged $0.99 for every unit you sell on the platform. This choice between the two plans is relatively easy to make. If you plan on selling more than 40 units per month, you will likely save more money with the professional selling plan than you will with the individual selling plan. Source, Buy, or Create Your Products Now comes the fun part: finding, buying, or making your Amazon products! If you are interested in wholesale or private labeling, you’ll want to find manufacturers who will sell to you at wholesale prices. Use a tool like JungleScout [] or Helium10 [] to do product research. These tools let you identify trending and popular products and discover how profitable a product is so you know what to start sourcing. If your business model is retail or online arbitrage, then you get to start shopping for those deeply discounted products. Again, you’ll want to use tools like JungleScout or Helium10, in addition to the Amazon Seller app []. With these apps downloaded to your phone, you can find a great deal in a store and instantly verify if that product will sell on Amazon before you even take it to the register (or add it to your online cart). Makers and creators can get to work on their artisanal handmade goods. You can self-publish books and ebooks, create print-on-demand products, and even launch a subscription box! Explore all of Amazon’s programs and selling opportunities here. [] List Your Products and Start Selling Your final step to selling on Amazon is to list your products in your Amazon store so you can start selling. List Your Products on Seller Central Once you register as an Amazon seller, you’ll have access to your Seller Central account, where you can: * Keep track of your inventory and update your listings from the Inventory tab * Download custom business reports and bookmark templates you use often * Use customer metrics tools to monitor your seller performance * Contact Selling Partner Support and open help tickets using the Case Log * Keep track of your daily sales for all the products you sell on Amazon If you are listing a product that already exists on the Amazon platform, you’ll match an existing listing. You'll create a new listing if you have a brand new product that is not currently on the Amazon platform, and you are the first and only seller. Start Selling! Learn everything you can about different ways to make — and improve — sales on Amazon. Amazon recommends sellers follow their Perfect Launch strategy to maximize sales in the first 90 days. Utilize Amazon’s five selling programs for a perfect launch, including: 1. Brand Registry 2. A+ Content 3. Fulfillment by Amazon 4. Automated Pricing 5. Advertising Learn more about the Perfect Launch here. [] Are You Ready to Become an Amazon Seller? There is tremendous potential for Amazon Sellers. Despite lasting supply chain disruptions arising from a global pandemic, 76% of Amazon sellers are profitable in 2022. And 25% of sellers with 2 or fewer years in business on Amazon and 60% of businesses with 3 years or more earn over $100,000 in annual ecommerce revenue. If you’ve been dreaming of starting a side-hustle, expanding an existing business, or launching your brand, Amazon is still one of the best places to sell online. Get Amazon Seller Insurance from Coverdash Coverdash helps ecommerce sellers meet Amazon’s insurance requirements so you can get started on this seller platform. Our insurance brokers specialize in ecommerce insurance, and we provide top-rated coverage at rates sellers can afford. Once we’ve got you covered, our team continues to support you by submitting a COI (certificate of insurance) to Amazon on your behalf, making it that much easier for you to start selling. Request a quote for Amazon seller insurance from Coverdash today.
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Do Freelancers Need Insurance?

Do you need insurance as a freelancer? You may not think you need freelance insurance, especially if you’re a service-based freelancer working from home. However, you may be surprised to learn that business insurance may be required in some cases, and in others, could be the ticket to winning new clients and scaling your freelance business. Do Freelancers Need Insurance? Currently, no state laws require you to carry commercial insurance for your freelancing business. The exception is worker’s compensation insurance, which is required by law in nearly every state if you hire employees. However, carrying certain commercial insurance policies could help your business thrive. Here’s how: Insurance Requirements for Freelancer Marketplaces Freelancing marketplaces such as Fiverr and Upwork are incredible resources for web designers, copywriters, graphic designers, and other service-based entrepreneurs to find new clients. Billions of dollars are transferred to freelancers every year on these marketplaces, so ignoring them as a potential source of business can be a costly mistake. Some freelance marketplaces require you to carry commercial insurance to bid on and accept jobs on their platform. Fiverr, [] for example, requires freelancers to carry adequate general liability insurance to cover the most common risks of your service. Upwork, on the other hand, does not currently have an insurance requirement outlined in its terms of service. However, they do require you to carry any insurance coverage required by law in your state and country. If you want to tap into the enormous potential available in these freelance platforms, carrying the required insurance policies required by the platform or your state can help you find new clients. Use Insurance to Grow Your Client Base Not all freelancers get clients from freelancing platforms. If you have a “cold-call and connect” method for building your clientele list, you still may need to have insurance protection in place. Many freelance service providers work directly for small, medium, or enterprise-level businesses. What happens if your work results in a financial loss, lawsuit, or business interruption for your client? Savvy business owners know that we live in a litigious society, and a potential lawsuit lurks around every corner. Many potential clients will require you to carry general liability, professional liability, or other commercial insurance policies to minimize their risks of being financially liable for your work. Freelancer Insurance: a Competitive Advantage Not every potential client or freelance marketplace will require you to carry insurance. However, you can still use your insurance coverage as a competitive advantage when bidding for jobs. Having freelancer insurance in place protects your business, allows you to protect your clients, and makes you look like the experienced professional you are. Use your coverage as a competitive advantage. Let potential clients know you have all the necessary business licenses, professional certifications, and insurance policies in place. What Insurance Do Freelancers Need? Now that you know that freelancer insurance may be required to find new clients, it’s time to consider what types of insurance you may need. General Liability Insurance for Freelancers Consider adding a general liability policy for the most basic business protection at a bare minimum. General liability (GL) insurance is a foundational insurance policy that is designed to protect your business against claims for third-party bodily injury or property damage. GL coverage will typically contain coverage against claims for copyright infringement, slander, and libel. This coverage is even more important for freelancers who provide services such as graphic design, web design, copywriting, and other marketing-related services. Imagine that your client provides you with a competitor’s logo for inspiration. On the other hand, the competitor thinks your version of the logo is a little too close for comfort and files a lawsuit for copyright infringement. This real-life example happened in Utah when one gourmet cookie retailer sued its competitors for “confusingly similar” branding and packaging. Don’t get caught up in your own version of the cookie-wars [] . Protect yourself with a general liability policy for freelancers. BOP (Business Owner’s Policy) for Freelancers Another common insurance policy that benefits freelancers is a business owner’s policy, known as a BOP. A BOP is a combination policy that generally includes general liability insurance protection with commercial property coverage. Why would you need commercial property insurance as a freelancer? Commercial property insurance can protect your building or office and the equipment you use to run your business. Many home-based business owners mistakenly believe that their homeowners insurance or renters insurance protects their business assets. However, these policies are designed to protect your personal assets, not your business equipment and property. Only commercial property insurance is intended to cover the laptops, desktops, cameras, video cameras, podcasting equipment, and other business assets you use while running your business. The biggest reason to consider a BOP is the cost-savings potential. This combination policy is often more cost-effective than purchasing separate GL and commercial property policies. Professional Liability Insurance for Freelancers Also known as errors and omissions (E&O) coverage, professional liability is business insurance tailor-made with service providers in mind. Professional liability is meant to protect you in the event your client experiences a financial loss resulting from your service or advice. Professional liability protects you against client lawsuits alleging professional errors, negligence, or omissions. Cyber Liability Insurance for Freelancers The tremendous technological advancements of our modern world allow you to run your freelancing business out of your home (or from the road). You can grab your laptop and work from just about every corner of the world these days. However, public WiFi connections, stolen laptops, and criminal hackers are just a few of the ways that you could risk client data as you run your business remotely. Cyber liability insurance is meant to protect you in case of a data breach, hack, or loss of sensitive personal information. This business insurance policy can help ensure you don’t have to pay out of pocket for lawsuits, client notification, credit monitoring, or reputational damage if a break occurs. Get Freelancer Insurance from Coverdash Not sure which freelancer insurance policy is best for your business? Let the insurance professionals at Coverdash help you craft the perfect protection for your business. Our insurance broker specializes in insurance for freelancers, and we’re able to get top-rated coverage for our clients at rates any freelancer could afford. Request a quote today and find out how affordable freelancer insurance can be from Coverdash.
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What Insurance Requirements Do You Have As An Ecommerce Seller?

Do ecommerce businesses need insurance? Ecommerce is a booming business. Ecommerce sales amounted to USD 4.9 trillion in 2021, and that figure is expected to grow by 50% by 2025. You don’t have to be a megabrand to start selling things online. With the variety of selling platforms available today, anyone can start an ecommerce business. Whether you’re selling handmade goods on platforms like Etsy, creating your own private label brand, or shipping wholesale products to Amazon, selling online is an accessible business model with a ton of potential. Before you get started selling online, however, you will have to take care of a few steps to ensure you are approved to sell on the platform. Some platforms may require you to have a resell license, a business license, a federal tax ID, and, most notably, small business insurance to “set up shop.” Why Do You Need Ecommerce Business Insurance? You may be wondering why so many of the selling platforms have insurance requirements. The answer is surprisingly simple: Business insurance protects you and your selling platforms against the unexpected. Imagine that you’ve privately labeled a personal care product and shipped 2,000 units to Amazon. But, unbeknownst to you, the formula contains an ingredient that can cause a reaction for some users. Your customers order the product and some break out in a rash. Angered and injured, some of these customers decide they will sue you — and the selling platform — for the bodily injury caused by your product. If you have a general liability insurance policy, it’s designed to protect you against third-party lawsuits for property damage or bodily injury. If you’re facing a claim,  your insurance can kick in to help pay for the costs of medical bills, lawsuits, legal fees, settlements, and judgments up to your policy's limit. This means you’re protected from the potentially high costs of paying for an injury out of your own pocket, and so is your selling platform. Understanding Ecommerce Insurance Definitions Before we get into the insurance requirements for each platform, let’s take a moment to define and understand a few ecommerce insurance concepts: What is general liability insurance? Most all businesses can benefit from the coverage provided by general liability insurance. This foundational business insurance policy is intended to protect your business against third-party claims for bodily injury or property damage resulting from your product or business activities. General liability coverage is designed to protect sellers against personal and advertising injury claims for slander, libel, or copyright infringement. If one of your competitors feels like your recent Tweet or Facebook ad is bashing their products or that your product name infringes on their copyright, general liability is meant to help cover the costs of lawsuits and legal fees. If you’re an online retailer, general liability insurance (GLI) may also provide additional product liability coverage for manufacturing defects, design flaws, or your failure to provide adequate instructions or warnings on the label. Ask your insurance provider if product liability is included with your general liability coverage or if you’ll need to add it as an endorsement to your GLI policy. What is a business owner's policy (BOP)? A business owner’s policy (BOP) is a specialized policy that combines a few of the most common types of insurance that a small business might need. A BOP typically includes general liability plus commercial property coverage, which can benefit any business with a physical location (such as a retail store, warehouse, etc.), products, and equipment. BOPs are a very popular way to obtain GLI because they are often more affordable than purchasing the two policies separately. For many ecommerce platforms, a BOP will meet any general liability insurance requirements. What are policy limits? A policy limit is a maximum amount your insurer will pay for an insurance claim. If you have a policy limit of $100,000, then your insurer will pay up to that amount for a claim. But what happens if your claim exceeds your policy limit? If you have that same $100,000 policy limit and get hit with a liability claim for $250,000, then your insurance will cover the $100,000. However, you’ll be responsible for the remaining $150,000 due. What are per-occurrence limits v.s. aggregate limits? A policy limit is an easy way to understand how much your insurer will pay out in the event of a claim. A more nuanced way to look at policy limits is to understand the difference between per-occurrence limits v.s. aggregate limits. * per-occurrence limit: the maximum amount your insurer will pay per occurrence, or per incident * aggregate limit: the maximum amount your insurer will pay over the entirety of your coverage period (commonly a 6 to 12-month period) Understanding the difference between the two can help you ensure you’re selecting the right coverage for your seller's business and not leaving yourself open to unnecessary risk. Don’t confuse the two. What is an umbrella policy? Some sellers choose to add an umbrella policy to their insurance coverage. Umbrella insurance is meant to extend the limits of your underlying policy. It kicks in when you’ve reached your policy limits and is intended to protect business owners from the risk of very large lawsuits or high-dollar claims. In the previous example, you could still be responsible for paying out of pocket for a $250,000 claim if your GLI policy limit is only $100,000. If you have umbrella insurance, however, the umbrella policy would kick in after the GLI policy to cover the remaining amount, ensuring you don’t have to pay out-of-pocket for excessive claim amounts. Now let’s take a look at the insurance requirements from the most commonly used ecommerce platforms. Ecommerce Insurance Requirements by Platform Amazon, Walmart, and Shopify are the Big Three when it comes to seller platforms. While Amazon has dominated the online retail space, Walmart and Shopify are both investing heavily in giving Amazon a run for its money. Behind the Big Three e-retailers, Wayfair, Target, Newegg, Etsy, and others are providing opportunities for sellers to profit through the sales of wholesale, retail, and handcrafted products. Here are the 2022 insurance requirements for each. Amazon Amazon [] Pro merchants and sellers with gross sales exceeding $10,000 in any month are required to carry commercial general liability insurance and product liability insurance as outlined in the Amazon Services Business Solutions Agreement. [] Amazon has an insurance deductible requirement. Your insurance deductible [] is the amount of money you are responsible for in the event of an insured loss. If you want to sell on Amazon, your GLI policy must have a deductible of less than $10,000. * Min: $1 million per-occurrence limit * Min: $1 million aggregate limit * Deductible must not exceed $10,000 * Certificate of insurance (COI) required * Amazon and its assignees must be listed as an additional insured [] Walmart Walmart [] requires all suppliers and sellers providing goods for resale on its platform to carry general liability and product liability insurance. In addition, you may be required to provide proof of workers' compensation insurance if you have employees that will be entering Walmart premises, commercial auto insurance if you or your employees will be making deliveries to Walmart premises, and/ or umbrella coverage to help you reach the following policy coverage limits: * $1 million per-occurrence limit * $2 million aggregate limit * Certificate of insurance required * Walmart Inc. and its subsidiaries and assignees must be listed as additional insured Shopify Shopify []does not currently have insurance requirements for sellers, meaning you can set up your store and begin selling without providing proof of insurance. However, that doesn’t mean your business is protected against lawsuits or claims resulting from your product sales! Talk to your insurance provider about the best general liability and product liability coverage and policy limits for your Shopify store, so you’re not left vulnerable to an unhappy, litigious customer. * no per-occurrence limit requirement * no aggregate limit requirement * no certificate of insurance required Wayfair Wayfair [] has separate insurance requirements for designers v.s. dropship suppliers for its home furnishings and decor platform. If you are a Wayfair designer, the platform requires that you maintain any legally required insurance policies, like workers’ compensation if you have employees. For sellers, the platform requires a general liability policy or a combination of general liability and umbrella coverage as needed to cover the per-occurrence and aggregate limit requirements. * $1 million per-occurrence limit * $2 million aggregate limit * Certificate of insurance (COI) required * Wayfair LLC must be added as an additional insured. Target Target []is another e-retail platform that allows sellers to use the brand’s existing scale and influence to reach more customers online. Like other sellers such as Wayfair and Walmart, Target will expect you to meet any legal insurance requirements in your state, which may include workers’ compensation insurance if you have employees and commercial auto insurance to cover delivery trucks. Target sellers [] are required to carry general liability insurance, including product liability coverage. Target’s contract specifies vendors  “must provide insurance for the life of Goods covering claims occurring or brought by third parties, including after Purchaser discontinues sale of Goods.” Target is one of the few retailers that may require vendors to provide Network Security and Privacy Liability, which is part of a cyber liability policy that can protect against data breaches and damages due to lost or stolen breaches. Target has the highest policy limit requirements from its vendors, including: * General liability: $5 million per occurrence * Workers’ compensation: $1 million * Commercial auto: $1 million * Network security and privacy liability: $1 million * Target Corporation and its subsidiaries must be listed as additional insured * Certificate of insurance required Newegg Newegg [] is an e-tailer focusing on consumer electronics, smart home and gaming products, and more. Newegg has two sites for sellers: the original tech-focused site and its smaller, niche site, Neweggbusiness, serving business buyers. Newegg’s contract [] states that sellers must maintain general liability, product liability coverage, and errors & omissions (E&O) insurance with at least an A.M. Best Rating of A-, VII or higher. Newegg also requires product liability and product recall insurance for sellers that manufacture their own products. * $1 million per-occurrence limit * $2 million aggregate limit * Certificate of insurance required * Newegg must be listed as additional insured Esty Etsy made a name for itself as THE platform for selling handmade goods and crafts and has expanded to include wholesale, digital products, and much more. Etsy does not require sellers to carry insurance to utilize the platform at this time. However, as we’ve mentioned before, carrying general liability insurance for your selling business can protect you in the event a customer is injured or alleges an injury resulting from your product. Even if you win a frivolous lawsuit, the cost of fighting in court can add up fast. If you’ve been selling on Etsy or any platform before, you know that sometimes customers can quickly turn from sweet to sour. When you have general liability insurance in place, you can protect yourself from the high costs of defending yourself against an unhappy customer in court. * no per-occurrence limit requirement * no aggregate limit requirement * no certificate of insurance required Get a Quote for General Liability Insurance and Start Selling Are you ready to start selling on one of these popular ecommerce platforms? Most e-retailers require vendors and sellers to carry — at the minimum — general liability and product liability coverage. Even if a platform doesn’t have an insurance requirement, a GLI policy can be an effective way of making sure you get to keep your selling profits. Coverdash helps sellers and e-retailers meet insurance requirements to sell on the major ecommerce platforms. Our insurance brokerage can help you find the perfect policies to protect your small business, including general liability, business owner's policy, professional liability, worker’s compensation, and cyber insurance. Our team of ecommerce insurance professionals will shop the leading commercial insurance carriers to find you the best coverage at the most affordable rates. Our ecommerce insurance service doesn’t stop at finding you the right coverage, either. At Coverdash, we’ll help you get your certificate of insurance (COI) delivered to your ecommerce platform so you can stay compliant with platform requirements. Don’t let ecommerce insurance requirements keep you from making sales online. Request a quote from Coverdash so you can start selling without delay.
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