If you have created an e-commerce store whether through your own platform, a third-party like Shopify, or an online marketplace like eBay or Amazon, you will need to consider your insurance options.
If you are relying on your online retail business for a part or all of your income, you could find yourself in a tight spot should disaster strike. eCommerce or Internet Traders insurance can act as a safety net. Get your quote today.
As an online retail business owner, your physical goods are arguably your most important asset. Without your stock, you will have nothing to sell.
With Insync, you can insure your stock for risks such as fire, theft, loss and damage to protect your income in the event of a disaster. For example, you store your stock in your garage, and a burst pipe causes water damage to your products, and they're now unsellable. With a robust policy, you can claim back the cost of the damaged goods and, with a Business Interruption extension, your fixed costs and lost earnings during that time would also be protected.
Products Liability is recommended for all online retail businesses. Products Liability covers you for instances where physical products that you have supplied are alleged to have caused bodily injury, illness, accidental death, or property damage to a third party.
While the legal liability is usually placed on the manufacturer, some claims are not always clear cut and anyone in the supply chain can be brought into a dispute, particularly if the manufacturer doesn’t respond or is based in Asia and the claimant's lawyers will simply attach any liability to you as the seller. If you are selling products that you make yourself, i.e. on Etsy, Amazon, or your website, our team can arrange personalised insurance for your business.
In the event of a claim, your product liability insurance will pay the costs of your legal defence and the compensation costs should the claimant be successful.
Public and Product Liability insurance go together as standard. Like Product Liability, Public Liability covers you in the event of a member of the public suffering an injury, illness, accidental death, or third-party property damage as a direct result of your business activities, rather than a product supplied by you.
While an online business might have minimal interaction with members of the public, a Public Liability policy still comes recommended.
For example, a tradesperson is visiting your premises and trips over a loose carpet tile. The person is injured and makes a compensation claim against your business. Like Products Liability, your insurance will cover both legal and compensation costs to protect you from the financial losses of a claim.
While other types of insurance are not mandatory for online retailers, Employers Liability is a legal requirement in the UK for any businesses with staff that are not immediate family members. If you employ people, whether they be full-time, part-time or casual workers, you will need to have employers liability cover. Not having cover when you need it can result in fines of up to £2,500 for every day you are uninsured. You can find out more information on laws around Employers Liability on the Gov.uk website.
Employers Liability provides financial support if any of your employees suffer an injury, become ill or their property is damaged as part of their work for you. If someone is working for you voluntarily and are injured, they may still be able to make an Employers Liability claim. Be sure to discuss this with our team for more information.
Our online retailer's insurance facility works on a menu style basis, allowing you to simply select and pay for only the elements you need. Typical cover options include:
Public and Product Liability Insurance
Cover for Cyber Attacks and Data Breaches
Manufacturing / Manufacturer cover available
Commercial Property Insurance
Cover for Legal Costs and Compensation Payments
Cover for Physical Loss, Accidental Damage and Theft
Stock or Goods Transit or Inland Marine Insurance available
Business Interruption for continuity
Specialist business insurance for all types of e-tailers and online retailers meeting the needs of all major online platforms, including Made.com, Etsy, eBay and Amazon Marketplace.
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Cyber cover is a highly important part of online business insurance. As an online retailer, you will likely be holding customer data and or taking payments online, making cyber insurance cover a high priority for your business. Our expert team at Insync can arrange a comprehensive cyber policy to protect your business in the event of a cyber-attack or data breach.
It is intuitive that if you are running a business that your business premises will need commercial property insurance. However, if you are running an eCommerce business from your home, business owners often make the mistake of relying on their standard home insurance for protection. If you are operating an online retail business out of your home, you will need to make sure you have a specialist business policy in place such as working from home insurance.
Sometimes products are lost and damaged in transit. Cargo or Transit Insurance will cover your assets while they are being shipped to your customers in the UK and abroad. Depending on the contractual arrangement with your supplier, you may also find that you are responsible for insuring goods from point of sending and without adequate cargo insurance you may be financially exposed to any loss or damage to the goods during transit.
With a Business Equipment policy, you can insure your computer equipment, mobile phones and specialist tools. For instance, if you are manufacturing or crafting goods to sell through your online store, your equipment will be crucial to your business's success. With Insync, you can insure your any manufacturing or packing tools, such as laser cutters, saws, drills and more under your business insurance policy, as well as office equipment and contents.
Business interruption will make up for your lost income following an insured event. For example, there is a fire at your warehouse, which takes out half your stock and takes weeks to repair. Business interruption is key to your business continuity during a disaster and preventing you from falling into arrears while your business gets back on track as fixed costs such as rent, rates, wage roll all need to be met, as well as any associated loss of profit.
Professional indemnity insurance covers losses for your customers or others as a result of your professional advice. While this is often not relevant for a lot of online retailers, it might be an issue if you are using your status as an expert in your field to advise people on what they should buy. For example, you are a medical professional selling wellbeing products or are making custom items for a client, whether it be in bulk or an individual commission. If a client believes they have suffered a financial loss as a result of the advice, or professional services if you have provided, they may seek financial compensation, together with any associated costs – your professional indemnity insurance policy would protect you against such actions.
According to HMRC, all business insurance is an "allowable expense" and, therefore, deductible from your taxable profit. Keep hold of your policy documents and receipts when you take out cover (these will be emailed to you).
Insync Insurance Solutions Ltd
9 Albany Park, Cabot Lane
Poole, Dorset BH17 7BX
t. 01200 309516
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