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Insurance for Online Businesses

If you run a business on the internet you need to consider insurance.

What you need to know

  • Online businesses are exposed to a multitude of risks, any one of which could damage or even destroy the business.
  • Some type of business insurance can cover your business for privacy protection, cyber liability, cyber extortion and more.

Get a quote for cyber liability insurance

Name Product Cyber Incident Response Data Extortion Data Restoration Costs Cyber Crime Business Interruption Levels of cover
upcover Business Insurance
$200,000
$1,000,000
$5,000,000
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What types of risks do online businesses face?

Where once a bricks-and-mortar business would face the risk of someone slipping on their wet shop floor and suing them for damages, liability has now moved into the cyber realm.

A business now risks harming its customers through digital means, such as inadvertently spreading viruses or malware in marketing emails or compromising customers’ privacy and personal details via an online security breach.

And unfortunately these new exposures are not instead of the normal risks but as well as, meaning a business must not only insure itself against online risks but also take out other more traditional forms of business cover. These might include product liability insurance if they are selling goods online and professional indemnity insurance if they are offering professional services or advice online.

Finder survey: Do Australians from different states think business insurance is worth it?

ResponseWAVICSAQLDNSW
Yes76.86%77.56%75.27%68.66%74.01%
No23.14%22.44%24.73%31.34%25.99%
Source: Finder survey by Pure Profile of 1112 Australians, December 2023
Data for ACT, NT, TAS not shown due to insufficient sample size. Some other states may also be excluded for this reason.

What does a typical policy cover?

  • Privacy protection. Covers legal costs and indemnification for privacy breaches and loss of customer information.
  • Breach costs. Covers data recovery and repair costs following a breach (both physical and reputational).
  • Cyber business interruption. Compensates the business for lost profits while it is unable to trade due to a breach.

  • Cyber liability. Covers legal costs and compensation for third parties who suffer a loss as a result of the business.
  • Hacker damage. Covers the cost of repairing damage caused by a hacker to a website, network or database.
  • Cyber extortion. Covers the cost of ransoms and forensic investigation if data is hijacked.

What types of insurance should online businesses consider?

An online business should also have a range of traditional business covers in its portfolio, including:

Public and product liability insurance

Workers compensation insurance: if you pay annual wages. It is compulsory in Australia but differs in every state and territory.

Public and product liability insurance

Public liability insurance: if there is a bricks-and-mortar aspect to the business.

Product liability insurance

Product liability insurance: if you sell goods to the general public.

Professional indemnity insurance

Professional indemnity insurance: if you provide professional services or advice.

business insurance

Business insurance: to protect your stock, essential equipment etc against theft or damage.

Personal accident and illness insurance

Personal accident and illness insurance: to cover loss of income due to illness or injury if you are a sole trader.

Read our guide about business insurance

Talk to a broker about business insurance

Frequently asked questions

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