Electronic Commerce Insurance Keeps Online Businesses Secure

The Internet has spawned a proliferation of online business activities and is home to some of the largest retailers in the world, such as a popular book-selling site that since has expanded to include numerous other goods sold. It’s possible to purchase anything from a book to a car to a home and the insurance to protect all of them. But any business engaged in online activities needs to have electronic commerce insurance in place to ensure it as well as any customers or clients are protected against the perils unique to Internet-based commercial activities.

Electronic commerce is defined as the use of technology in business practices to enable internal and external workflows as well as communication with consumers, customers and clients. And such technology is used to electronically communicate as well as engage in commercial activities while at the same time reducing costs and increasing efficiencies.

Some industries have embraced the Internet and other forms of electronic activities, such as sending and receiving facsimiles. Chief among them are the travel industry, online retailers, insurance firms and auction sites, like eBay. If you want to own or rent a home or apartment, many times, an online application or other form of communication is the first step taken. But if that information somehow is used to commit fraud or engage in theft of monies, an online business could find itself facing a hefty lawsuit and possibly large legal judgment.

Among risks that are particularly high for online businesses is the possible theft of data, making data security a high priority. If personal or financial information is stolen by a computer hacker, for example, the online business has a heightened liability due to the increased need for it to provide security against such illegal accesses. And if a client should suffer a loss as a result of a breach of site security or some other means of illegal activity, the business owner might find a costly lawsuit threatening the future of the enterprise.

Interruption of commercial activities also is a strong threat facing online enterprises, such as might occur if a third-party vendor is in charge of handing certain types of online transactions and the site suddenly is unavailable for any number of reasons, like when a server goes down and the website cannot be accessed. Even a short time down can result in a great deal of lost sales or other commercial activities.

An electronic commerce policy can help alleviate potential losses and ensure a smoothly operating business remains, but there can be difficulties when filing a claim if something bad should happen. Because the nature of online businesses can vary greatly, the more information that can be provided to fully inform insurance agents and adjusters on the kinds of activity and commerce done can help speed up the claims process if one is filed.

And the level of coverage needed varies as well. The amount of insurance needed is relative to the amount of risk carried, as would be expected. Insurance experts advise carrying at least $1 million to $2 million in liability coverage to protect the business and its customers if the commercial activity is relatively small and only a small amount of equity is available.

The Swift Towards Electronic Commerce

A whole new process has been born, and this is not only the result of the technological evolution, but also the result of market and societal factors, which constitute a highly competitive business environment where the customer has the choice. Electronic Commerce (EC) is the outcome of the fast changes occurring in the telecommunication marketplace, as every company that desires to be a part of the future must try to find ways to renew its offers and produce innovative services while focusing on customer satisfaction. Under this notion, telecom corporations have to work under increasing pressures to produce more and faster, using fewer resources.

Few innovations in human history encompass as many potential benefits as EC does. The global nature of the technology used, the low cost production, the opportunity to reach hundreds of millions of people with a single effort, the interactive nature of the medium, the variety of possibilities, and the resourcefulness and rapid growth of the supporting infrastructures-especially the Web-result in many potential benefits to organizations, individuals and the society in general. These benefits are just starting to materialize in some countries, but they will increase significantly as EC continuous to grow. It is not surprising that some maintain that the EC revolution is just “as profound as the change that came with the industrial revolution.”

Electronic commerce has a number of benefits. First, EC expands the marketplace to national and international markets. With minimal capital outlay, companies today can easily and quickly locate more customers, find the best suppliers in the industry and the most importantly suitable business partners worldwide. For example, in 1997, Boeing Corporation reported savings of 20% after a request for a proposal to manufacture a subsystem was posted on the Internet. Second, electronic commerce allows reduced inventories and overhead by facilitating “pull”-type supply chain management. In a pull-type system, the process starts from customer orders and uses just-in-time manufacturing. The pull-type processing enables expensive customization of products and services, which provides competitive advantage to its implementers. Other benefits of e-commerce include improved image, improved customer service, new-found business partners, simplified processes, compressed cycle and delivery time, increased productivity, eliminating paperwork, expediting access to information, reduced transportation costs, and increased flexibility.

Since the Internet is not owned by anyone and its regulatory authority is still debated, it is considered by many to be the only medium that is still truly free. Therefore, not the same costs exist, compared to the mediums of radio, television, or publications. Thus, it is possible that EC can act not only as a selling system that management needs to view the advent of a sales opportunity, but also as the medium with which purchases are made. Telecommunication companies can use the Web in order to directly communicate with resellers and provide them with the needed information about the products that have been purchased; which saves both time and expense in terms of the way that enquirers are made and orders placed. At the same time, EC can increase employees’ productivity by 100%. Since less time would be spent for filling-in paperwork, employers will spend the extra time to find new customers, increasing their personal sales volume and direct their efforts in better servicing the already existing customers thus increasing the level of satisfaction and reduce the switching effect.

Electronic Commerce and Its Effective Way to Earn Cash

The word e-commerce is derived from electronic commerce. It is a new way to earning and creating your own business. In technical aspects, the business of e-commerce is basically the same as that of a regular traditional business that uses the modes of buying and selling as their mainframe transactions. Doing business online is considered by making as the most convenient way to earning huge profits and income.

Convenience is the general idea of e-commerce. Just imagine doing some online window shopping just to find the right goods and products that you want to buy. The factor that makes traditional businesses a tedious task is the act of finding a good working location, designing the work site and ensuring that the construction process is finished at the defined period. This act requires a lot of time and effort on your part.

With an online e-commerce business, you can now do the task and complete the project in the comfort of an air-conditioned room and in the comfort of your home. You no longer have to deal with the issues of presenting the goods and products to the potential buyer in an appealing location. With the online website, all you have to do is to capture a great image of the goods and products that are being sold and have the option to post it at your website. This decreases the workload and saves you the time in creating that good location where to sell your products and services.

This e-commerce website is also beneficial to the consumer. Your prospect consumer no longer has to go out on the field and find the store that carries their needed goods and products. All they have to do is sit down in front of the computer and search for the brand and model that they want to purchase. Thus, you can have that wider base of products and goods to choose form.

E-commerce businesses help you save additional expenses in terms of overhead costs. You no longer have to pay that extra electricity and water bill just to sell your products and goods. If you base your projects at home, your usually costly overhead is now part of your monthly house expenses and bills. The great thing about online businesses is you get to save from the huge costs of construction and building set-ups.

Most online merchants do not stock the merchandise that they are selling. Some merchants pay a certain fee to have these goods and products safe kept at a warehouse and store. The merchants do not necessarily stock any goods in their homes or offices. They use a warehouse to keep these goods and products.

Automated systems also make the e-commerce business to be more appealing to the online market. Most online businesses use software to create the necessary sales and promotions of their goods and products. The e-commerce business also opens the doors for newer and wider market base. The Internet is a broad spectrum and only those that are willing to work their best will be rewarded proportionally.