Shopify Business Insurance

A comprehensive Shopify business insurance policy may include the following coverages:

• Commercial General Liability (CGL) Insurance: CGL covers you for third-party bodily injury or property damage claims that occur on your premises or because of your services. For instance, if a customer visits your brick-and-mortar retail store falls and fractures a wrist, CGL may pay for their medical expenses. CGL includes product liability insurance. You are liable for any product you manufacture, distribute, or sell, whether through your business’s website, a third-party marketplace or at a brick-and-mortar location. It protects you from third-party bodily injury or property damage claims resulting from the goods you offer to the public.

• Cyber Liability Insurance: All businesses are susceptible to cybercrime, and small businesses are increasingly targeted by cyber-attacks, ransomware, and other online threats. Cyber liability coverage provides you with financial support to cover the cost of data breaches, cyber extortion, or cyber-attacks that compromise your business or if your customers’ confidential data is stolen.

• Commercial Property Insurance: Commercial property insurance protects your business’s physical structure and its contents from loss or damage resulting from fire, flood, extreme weather, theft, and vandalism. It pays to repair or replace your inventory or merchandise, office equipment and furniture, and any improvements you make to a building if you are a tenant and not the business property owner. It typically includes business interruption insurance to cover your net income losses following an insured event.

• Equipment Breakdown Insurance: Regardless of selling online or not, if your business has a brick-and-mortar location, you should include equipment breakdown insurance. Also referred to as boiler and machinery coverage, it covers your equipment and machinery if they malfunction as a result of internal damage, such as a power surge or an electrical failure.

• Commercial Crime Insurance: Research suggests that 64% of small business employees steal from their employers. Whether it’s a primary concern for you or not, it’s wise to err on the side of caution and add commercial crime protection to your policy to cover you for losses related to internal theft, forgery, fraud, and other acts of employee dishonesty. You must have commercial property insurance to purchase commercial crime coverage.

• Legal Expense Insurance: Seeking legal advice from an experienced lawyer or hiring a counsellor to represent you can cost thousands of dollars. Legal expense insurance is a far more affordable option to include in your overall policy. It covers your fees when getting legal advice on everyday business topics and for various other issues, including contract and employment disputes, debt recovery, appealing a tax-related decision from the Canada Revenue Agency, and statutory licensing protection.