Making and selling crafts online is a great way to supplement your income. Unfortunately, many people who sell handmade items online fail to realize the importance of obtaining adequate insurance to cover their business activities.
Here are three types of insurance policies you should consider investing in if you plan to sell crafts online in the future.
1. General Liability Insurance
Having a risk management plan in place to address potential problems caused by your products is essential for any small business owner. A good general liability insurance policy should serve as the foundation for your risk management plan.
Should a customer decide to sue you because one of your crafts causes an injury, a general liability policy will protect you from financial ruin. Talk to your insurance agent about adding a general liability policy to your coverage.
2. Property Insurance
Many people who sell crafts online work from the comfort of their own home. While your homeowner's insurance is designed to provide financial compensation for property lost or damaged in a fire or other disaster, it's important to recognize that your homeowner's policy doesn't cover items used for business purposes within the home.
Acquiring property insurance designed specifically to protect your business assets will ensure that you are able to replace tools and supplies related to your online craft sales that might be damaged in a home disaster.
3. Inland Marine Insurance
Shipping plays an essential role in the success of any online business. Once your handmade crafts leave your property, you no longer have control over them. If you are worried about the possibility of your products being damaged during the shipping process, it can be beneficial to invest in inland marine insurance. This type of insurance product is designed to provide financial compensation for products damaged in transit.
Inland marine insurance covers your crafts while they are being transported to your customer, and while they are being housed in a sorting or storage facility. Having this type of insurance provides you with the maximum amount of protection against financial loss caused by damaged products in the future.
Part of being a successful business owner is taking the time to ensure that your business assets are protected. Adequate insurance is a must for online craft sellers, and investing in general liability, property, and inland marine insurance policies will help protect your craft business from financial loss in the future.
For more information, talk with professional insurance companies and agents, such as those at business insurance by May-McConville-Omni Insurance Brokers Limited.Share