Does General Liability Cover Online Business Activities? 

Running an online business, whether you’re selling products, offering services or running a content-based platform, comes with real-world risks, even if you never interact with customers face to face. While general liability insurance is a solid foundation for any small business, many business owners are surprised to learn it doesn’t always cover online activity.

If you operate primarily online, it’s important to understand where general liability ends and where additional coverage may be needed to protect your digital presence.

What Does General Liability Cover?

General liability insurance protects your business from common third-party claims such as the following:

• Bodily injury (e.g., someone trips in your physical workspace)

• Property damage caused by your business operations

• Advertising injury, such as slander, libel or copyright infringement

This type of coverage is essential for brick-and-mortar businesses. But general liability often falls short for online-specific risks.

What Is Not Included in This Coverage for Online Businesses?

Online operations introduce a new layer of exposure. General liability policies typically do not cover the following:

• Data breaches or cyberattacks

• Stolen customer information

• Hacking or ransomware events

• Downtime or revenue loss due to IT issues

• Professional errors in digital services or advice

Consider adding the following to fully protect your online business:

• Cyber liability insurance may cover data breaches and hacking incidents and the legal costs that may follow.

• Errors & omissions insurance (E&O) may financially protect against claims of professional negligence or service failures, which is especially important for consultants, coaches and digital service providers.

Protect Your Business

As an Ohio-based business owner, you don’t need a storefront to face serious liability risks. Whether you run your business from your home or a co-working space, make sure your insurance reflects the way you actually operate. Contact us today for a policy review.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.