eBay Insurance, what is it and what does it cover?
If you sell on eBay, you may be asking this question because you don’t feel 100% comfortable shipping your products to customers without some sort of protection on those shipments. This is especially true considering eBay’s buyer-friendly refund policy, a policy that means you’re the one who’s out of pocket for lost or damaged packages. If you’re looking for information on protecting your eBay shipments with some sort of insurance, you’re in the right place
What is eBay Insurance?
Basically, eBay insurance is, or can be, a package of customizable coverages designed to protect you and your business from both major and minor business losses. If you’re only looking for one type of coverage, we can certainly assist you with that. You may only be selling part-time on eBay, or don’t feel the need for insurance. But if your products injure someone you could be looking down the barrel of a major lawsuit – regardless of how much business you do on eBay. And what happens if there’s a fire where your inventory is being stored? Or a burglary?
ALIGNED business experts are exactly that – experts in the nuances of protecting any business, including the risks that come with selling on eBay that you may not have considered. The following information will tell you what you need to know to protect you, your products and your shipments with eBay insurance.
eBay Insurance Coverages
The following coverages are common for a lot of businesses but are vital for eBay sellers. Click on the title of each type of insurance for more information.
Depending on who you ship your products with, insurance may or may not be available for your packages. There are also some shippers that only offer insurance on small packages or products of low value and will not insure high-value items.
If a buyer claims s/he didn’t receive the package, a refund is usually issued at your (the seller’s) expense. While paying for signature confirmation of delivery may help protect you from false claims of a lost shipment, it does nothing for packages that are actually lost or damaged.
Getting third-party Cargo Insurance through a brokerage like ALIGNED is the best way to ensure that you’re reimbursed for items that are lost or damaged during shipping.
Other advantages of Cargo Insurance that are relevant to you as an eBay seller include:
- You’re protected from loss regardless of the shipper’s actions or policies
- You can get coverage on packages shipped worldwide
- Coverage can include shipments rejected by a governmental agency
- Protection can include the profits you would have made on lost or damaged shipments
- Having your own local insurance carrier makes filing claims for lost/damaged packages easier
Where do your store your inventory? The garage? The basement? Anywhere else on your residential property? If so, your inventory is unprotected from fire, flood or theft. Your residential homeowner’s policy will not insure the products you sell on eBay or the equipment you use to sell it as most residential policies will not cover commercial property or equipment and may even void coverage if you’re using your residence for commercial purposes.
Commercial Property Insurance is therefore necessary to insure your eBay inventory regardless of where it’s stored. A Commercial Property Insurance policy can also cover:
- Buildings and structures
- Computers, phones, tablets, etc.
- Office supplies
- Money and securities
- Business records
As an eBay seller, there are a number of entry points for hackers to breach your operations that you use regularly. They can include:
- Your eBay sellers account
- Your PayPal account
- Your bank or credit card accounts
- Your email
- Your own website
- Any portal, website or communications platforms you use with suppliers
- Any other websites you visit using the same device you use for your eBay operations
Cyber-criminals are constantly looking for ways to exploit any vulnerability they can to steal personal data, hold your data or system hostage for a ransom and/or deny you the ability to continue doing business. These hackers are experts at sending emails that look like they’re from eBay, PayPal or your bank and are designed to steal your login credentials – and they’re getting better at mimicking these companies every day.
Cyber Liability Insurance can protect you from the following:
- Legally required notification costs of anyone whose personal information was exposed during a breach of your accounts or system
- Ransom costs
- Data or system replacement costs
- Business interruption costs related to a cyber-breach
- Lawsuits stemming from a cyber-breach
As a seller on eBay and an e-commerce business, Cyber Liability insurance isn’t really an option.
Whether you’re making your own products or you’re reselling products you’ve bought from someone else, if those products you sell on eBay injure someone or cause property damage, one single lawsuit could spell the end of your business and/or bankrupt you depending on the severity of the injury or damage. You can also be sued if:
- someone injures themselves on the property where you conduct your eBay business
- your business operations injure someone or cause property damage
- someone accuses you of false advertising
A Commercial General Liability Insurance policy can insure you and your eBay business for:
- Lawyer’s fees and legal costs
- Settlement amounts
- Awards for damages
If you become aware of your products, or those you resell on eBay, having the potential of harming people or causing property damage, the responsible thing to do is recall those products. The costs of not doing so far outweigh the recall costs. Fortunately, with Product Recall Insurance your eBay business is insured against recall costs.
A Product Recall policy can cover you for:
- Recall expenses such as product testing, disposal fees, extra payroll costs and public safety messages
- Replacement costs so that you’re not out of pocket for the money you spend to purchase new products to replace the ones recalled
- Lost profits on the products being recalled and the ones in your inventory that have to be disposed
- Brand rehabilitation costs for public relations fees and advertising fees for your eBay business
ALIGNED eBay Insurance Solutions
Contact an ALIGNED business insurance expert for a fast and free quote on the insurance coverage you need for your eBay seller’s business. Our brokers are advocates, they work for you to find you the most protection at the best rates.