In the minds of many business owners, it seems to make perfect sense that a local, bricks-and-mortar store would need LA insurance, but whether an ecommerce storefront needs such coverage is often unclear. There are a lot of people who operate a business online because it allows them to forego the expensive overhead that normally comes with maintaining a physical location. These owners are usually justified when the actual cost-savings are compared, but there are some traditional business expenses that even ecommerce-only companies must cover, and insurance may be one of them.
While dealing with customers and vendors virtually may mean a reduction in risk of liability when it comes to like injuries and property damage, this reduction does not equate to no chance of a claim being made against an ecommerce business. Instead, the online storefront owner who fails to secure and LA insurance policy for their business risk personal and professional financial stability. The business could be sued for a breach in website security that results in identity theft, for example. Had there been a valid cyber liability insurance policy in place, the owner of the business would have been protected against the cost of such litigation.
People who own a profitable ecommerce storefront generally get to enjoy many more freedoms than owners of offline stores. However, one thing online business owners might do well not to be free of is the protection of liability insurance.