Do you operate a small business using online platforms only? As the online marketplace grows — and especially in the age of COVID-19 concerns — more people than ever have started or built up a presence to sell goods and services online. 

If this includes you, you undoubtedly know that you need business insurance to protect yourself and your investment. But one type of insurance that is targeted specifically at small businesses using other company's sales platforms may not be as well known. It's called seller suspension insurance. Here's what you need to know about it. 

What Is Seller Suspension Insurance?

Seller suspension insurance kicks in if your business is temporarily barred from operating on your retail platform. For most small online operators, this platform is Amazon. However, the insurance can cover retailers who sell using a different platform as well. If your account is suspended for a covered reason, this insurance can reimburse your losses as well as pay for certain related expenses.  

Why Is Seller Suspension Insurance Important?

When you rely on a single platform for a significant portion of your sales, a suspension of any length or reason can be debilitating. Small online retailers have no brick-and-mortar location to fall back on. And they are generally at the mercy of a large corporation whose commitment is often to the customers more than to its retailers. Even a well-managed online seller who does their best risks unwittingly triggering a suspension. 

Seller suspension insurance is low cost and operates much like business interruption insurance in a brick-and-mortar location would. However, as your business faces a unique risk, it focuses on that rather than the potential loss from fires, civil unrest, or vandalism. 

In addition to recouping your sales losses, the insurance may also reimburse you for expenses that can help get you back in business. Such expenses might include an appeals consultant to help make your case or even an accountant in case of a legal or tax audit. 

Where Can You Learn More? 

If you don't have a seller suspension insurance policy, now is the time to get one. Talk with a local business insurance agent about options that provide sufficient financial coverage, that work with the platform you use, and that cover your likely expenses. This small expense can translate into a huge amount of peace of mind as well as the protection of your livelihood in an uncertain world.