Business Insurance For California Online Businesses

With an online or internet business, there are specific needs when it comes to business insurance in California. Internet business owners are sometimes frustrated when it comes to arranging suitable coverage. That’s because not all risks are covered at this time however, internet business insurance is being continuously updated to improve coverage for business owners.

One of the specific problems of internet use for business is protecting data and privacy, and – according to the Insurance Information Institute – in 2010 there were 38,148 cases reported of identity theft in California. Identity theft can be used to perpetrate all manner of fraud crimes – from credit card and bank account to Government benefits fraud, to name a few.
As well as providing coverage for property losses and liability, internet business insurance options can include the following:

  • Electronic Data Loss coverage – this is designed to cover the cost of restoring lost or corrupted data as a result of issues defined in the policy, such as a computer virus. An endorsement can also be added to cover you for accidental loss. However this coverage does not include data theft at this stage.

  • Computer Operations Interruption coverage which is designed to compensate for lost income as a result of certain incidents as well as additional expenses incurred.

A very important thing to be mindful of in running an online business – or any business – is protection for your data. Daily back-ups are extremely important, as is security and anti-virus software. It’s also important to understand the exclusions on your business insurance. California has plenty of aspiring ‘webtrepreneurs’. A few will ‘make it big’, others will earn a comfortable living from home, and some will fail. Having the best possible coverage in place might help reduce your financial risk of failing due to losses after an insurable event.