Online retailer insurance

Why is online retailer insurance important?

If you sell goods online, you need online business insurance to keep you and your products protected. Even if you run your business from home, it doesn’t mean you’re covered by an existing home insurance policy. Make sure you've got everything covered in case the worst was to happen.

Online retailer insurance FAQ

Whether you’re new to buying business insurance or you’ve been trading for a while, here are the answers to some commonly asked questions about online retailer insurance.

• What insurance does an online retailer need?

  The only insurance you’re required to have by law is employers’ liability insurance. And you only need that if you employ someone.

  Although other types of insurance aren’t a legal requirement, it’s important to consider unexpected events and their consequences.

  There are different types of ecommerce insurance that you may want to consider, including:

  • public and product liability insurance
  • employers’ liability insurance
  • stock insurance
  • business interruption insurance
• Do I need insurance to cover my goods when they're in transit?

  You shouldn't need separate insurance to cover your products while they're being transported. As long as you're responsible for transporting the goods (and not a third party) then they should be covered by your stock insurance.

  You should be aware that the maximum amount you're covered for varies when your goods are in transit – so make sure you check this when you buy your insurance.

• Will changing from sole trader to limited company affect my insurance policy?

  If you change your business’s legal structure from sole trader to limited company half way through your policy, give us a call straight away on 0333 0146 683. It’ll only take us a few minutes to cancel your existing policy and replace it with a cover that protects your new company structure.

  It’s worth noting that your insurer and premium amount might change.

• Can I buy business insurance if I’ve had any CCJs or IVAs?

  You do need to disclose all unspent convictions to your insurer. But just because you have a CCJ or IVA doesn’t mean you won’t be able to buy insurance for your business. It’s important to realise that different insurers have different rules – some have stricter rules than others.

• Does public liability insurance cover my business for the actions of my employees?

  This will depend on whether you have employers’ liability insurance in place. Public liability insurance is designed to protect your business against the consequences of legal action brought by members of the public for injuries or damage to their belongings. But when it comes to your employees causing injury or damage, this protection only activates if you also have employers’ liability insurance.

  If you employ people, you’re required by law to have employers’ liability insurance.

  There’s one exception here. Family businesses that aren’t incorporated as a limited company are not legally required to have employers’ liability insurance. The government defines a “family business” as one where all your employees are closely related to you (as a spouse, civil partner, sibling, child, parent, grandparent, grandchild, step-parent, stepchild or half-sibling). So if you run an unincorporated family business and you choose not to get employers’ liability insurance, it’s important to know that your public liability insurance wouldn’t cover you against damage or injury caused by your team.

We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer