Insurance For Online Businesses

Compare insurance quotes with Savvy to find the best policy for your online business.

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, updated on August 1st, 2023       

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We’ve partnered with BizCover to bring you a range of business insurance policies to help you compare them side by side.

As more and more companies rely on technology to run their businesses, there are many key areas to protect in the online space. If you run any sort of online business, it’s important to have the cover you need against cyber criminals and other risks which may threaten your online business assets.

You can compare quotes for many types of business insurance here with Savvy. Just answer a few simple questions about your business and the insurance you need and you’ll have a wide range of offers to consider instantly from some of Australia’s most respected insurers. Compare with us to help you get the best-value insurance for your online venture today.

What types of insurance should I buy for my online business?

There are several types of business insurance you should consider if you run an online business or retail goods online. These include:

Cyber liability insurance

Cyber liability insurance will protect your online business from all forms of cybercrime, as well as the risk of customers suing you if their personal data is stolen.

What it covers

  1. Data breaches including theft of client information
  2. The cost of a forensic investigation into the cause of the breach
  3. Data recovery costs
  4. Cyber extortion and denial of service threats and attacks
  5. Crisis management costs
  6. Advertising and communicating with customers
  7. Legal costs including any fines and penalties imposed if you are found to have insufficiently protected sensitive client data

Product liability insurance

Product liability insurance will cover you against third-party claims that a product you sold or supplied was faulty or caused material loss, sickness, injury or death. Cover starts from $250,000 and can be bundled together with public liability into a business insurance package.

What it covers:

  1. Claims that a product you supplied or retailed caused sickness, injury or damage to a third party’s property
  2. Third-party damages claims
  3. Legal fees to defend yourself

General business insurance

General business insurance can include cover for portable equipment such as computers you may use to run your online business. Commercial vehicles aren’t included, so you may need separate commercial vehicle protection if you have a work car or ute.

What it covers:

  1. Fire, storms, theft, vandalism and collision which cause damage to your business assets
  2. Specialist cover for electronic equipment and other portable equipment
  3. Limited business interruption insurance

Public liability insurance

Public liability insurance is essential for anyone who deals with the public or takes care of property belonging to someone else. This includes cyber property, such as a company’s website or social media site. This insurance can offer between $5 million and $20 million worth of coverage and is a compulsory form of insurance for many government contracts.

What it covers:

  1. Damage to a third party’s property
  2. Personal injury claims
  3. Legal fees to defend yourself

What isn’t covered under online business insurance?

Some of the main exclusions to look out for under these policies include:

  1. Injury to yourself or your employees
  2. Flood damage
  3. Unlawful activity or criminal negligence
  4. Reckless behaviour or intentional damage
  5. Intentional or fraudulent acts
  6. The effects of pollution caused by your business activity
  7. Damage to computer hardware
  8. Upgrading of a system not related to the cybercrime
  9. Power outages or failure of satellite or telecommunication services
  10. Prior known circumstances or risks

How much will my online business insurance policy cost?

There is no set cost for an insurance policy, as each applicant is different and faces unique risks. Many factors influence the cost of business insurance, including the following:  

  • The state you’re in
  • Whether you live in a rural or urban area
  • Whether you’re a sole trader, in a partnership or running a larger business
  • Your business size or turnover
  • If you have any employees
  • The products or services you supply
  • Your credit history
  • Your insurance history, and whether you’ve made any recent claims

The main factor which will affect the cost of your insurance is the industry you’re in. All businesses in Australia are classified according to the risk their industry poses, and are allocated a risk ratio. These ratios are used by insurers to calculate the comparative risk of any one business compared to another. In general, online businesses fall into a low-risk category, so the cost of your insurance should be cheaper than some other, high-risk occupations.

You can find out how much insurance will cost for your business by comparing quotes right here with Savvy. Whether you need insurance for an e-commerce business or a recruitment consultancy, you’ll be able to find a policy which is perfect for your business needs right here.

Why do I need insurance for my online business?

You need insurance to protect the online business you’ve put so much time and effort into building up from unscrupulous cyber criminals. Imagine what would happen if hackers took over your e-commerce site or your social media and demanded a ransom be paid to regain control of them. All those years of building up your business could potentially be destroyed if you don’t have adequate business protection. It’s there to ensure your income continues whatever threat faces your business.

Types of business insurance

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Frequently asked questions about insurance for online businesses

What information will I need to make an insurance claim?

The information you should have available when contacting your insurance company to make a claim includes:

  • The name of the policyholder
  • Your policy number and start date (which can be found on your Certificate of Currency)
  • A detailed description of the incident (what happened to cause the damage, accident or injury)
  • Specific dates and times when events took place
  • Contact details of any other parties involved (or witnesses to the event)
  • Details of your police report number (if a crime was committed)
  • Details of the damage caused (including value if you’re claiming for property damage or loss)
  • Your bank details for settling the claim
Are my online business insurance premiums tax-deductible?

Yes – the Australian Taxation Office recognises that having business insurance is a legitimate cost of doing business, so the full cost of your insurance premiums can be claimed as a business expense and offset against your income. This applies to all types of businesses and all states, so the same rules apply whether your business is based in Adelaide or Tasmania.

How often will I have to pay my insurance premiums for my online business?

You’ll be able to choose how often you pay your insurance premiums. You can either pay upfront all in one go for the year or in monthly instalments. Paying your insurance premium annually is usually between 5% and 10% cheaper than paying monthly, so if you’re in the position to pay your insurance annually, it may be worth doing so to get the cheapest price.

Will I still need product liability insurance if I just import and sell goods online?

Yes – product liability insurance will protect you from claims that any goods you supplied caused injury, damage, loss or even death. However, the definition of ‘supplied’ is very broad in a legal sense and can include anything you advertise, market, re-package, transport, post or send online, so you don’t have to have produced it yourself to be at risk of a claim being made against you if something goes wrong.

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Disclaimer:

Savvy is partnered with BizCover Pty Ltd (ABN 68 127 707 975, AFSL 501769) to provide readers with a variety of business insurance policies to compare. Savvy earns a commission from BizCover each time a customer buys a business insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via BizCover.

Savvy does not compare all business insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.

For any further information on the variety of insurers compared by BizCover or how their business works, you can read their Financial Services Guide.