Standard businesses, whether they sell goods, manufacture them, or provide important services, need to have a BOP, or Business Owners Plan that includes property insurance, liability, and other necessities. That’s normal protocol for anyone with a traditional business. But, what about those who run independent businesses, like selling wholesale goods on Amazon or crafts on Etsy? Do you need business insurance if you have one of these businesses?
The answer is yes. You need insurance, and there are a lot of varied factors that play into that response.
Why Do You Need Business Insurance?
While you may not need a full business owner’s plan, there are plenty of insurance options that you can purchase in order to meet your coverage needs. Here are some of the many things to think about when choosing the right policies:
Product Liability – Did you know that you could be sued if one of your products accidentally harms one of your customers? Things like faulty electronics that cause a fire or improperly labeled recipe kits with ingredients that could cause an allergic reaction can lead to expensive settlements. Even the smallest businesses could end up in legal trouble. A product liability insurance policy can reduce this risk.
General Liability – There are numerous risks that your business faces, such as the potential for a customer to slip and fall in your warehouse or elsewhere on your company’s property. An injury like this could be a lawsuit, should your business be found liable for their injuries. Even if you don’t own the warehouse and are just renting a space in it, you could still be at fault. For this reason and all of the other risks, you need to have a general liability insurance policy.
Platform Requirements – Did you know that if you sell a certain number of items on Amazon, you need to have an insurance policy protecting your business and products? It’s a requirement for those who have sold over $10,000 in goods. Although Etsy doesn’t have a similar policy, it’s still something to look into because the platform won’t provide any insurance for you. So, if something goes wrong, your business is on the hook for the settlement fees.
What About Your Homeowner’s Insurance?
In many cases, people who sell goods on either Amazon or Etsy, especially those who don’t have a large sales volume, work out of their homes. Unfortunately, your homeowner’s insurance probably won’t cover any of your products, equipment, supplies, and more because they are a part of your business. As a result, you need to have specific business policies in place to cover these losses. In fact, there are special policies for these exact situations.
Insuring Your Etsy or Amazon Business
If you need to purchase insurance coverage for your business, contact Spivey Insurance. We can answer any questions that you may have, as well as provide you with the coverage that you need to protect your livelihood or side hustle.