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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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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