Online business insurance
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Rated 4.7/5
Based on 39,717 reviews
Claims paid in 24 hours
For 80% of settled claims
Why do you need online business insurance?
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.
- Protect your stock so you don’t lose income
- Cover yourself so you don’t pay unnecessary legal fees
- Peace of mind so you can run your business without worry
What does online business insurance cover?
Insurance for ecommerce business covers what you need. Make sure you're protected in case your stock is damaged, or if one of your customers takes you to court. Pick the cover that best suits your business and sleep easy knowing you’re insured.
Public liability insurance
In case the product you sell accidentally injures someone or damages something.
Employers’ liability insurance
In case your employee gets sick or injured while working for you.
Business interruption insurance
In case something is stolen or damaged and you lose income.
Stock insurance
In case something bad happens to your products.
Legal expenses insurance
In case a claim is made against you or you're subject to an HMRC investigation.
Public liability insurance
In case the product you sell accidentally injures someone or damages something.
What’s typically covered by public liability insurance for online retailers?
Claims against your business for:
- accidental injury or property damage
- damage to someone else’s property caused by your employee
For example:
- a customer claims one of your cakes gave them food poisoning
- a customer has an allergic reaction to a beauty product that you've sold to them
- a supplier breaks their arm while visiting your warehouse
Read more about warehouse insurance, public liability insurance and product liability insurance
Employers’ liability insurance
In case your employee gets sick or injured while working for you.
What’s typically covered by employers’ liability insurance?
Claims against your business for:
- injury or illness of an employee, caused by working for you (including medical costs)
**Employers’ liability insurance is required by law if you have people working for you. Without it, you could be fined up to £2,500 a day for each employee.**
For example:
- your employee trips over loose flooring and hurts their knee
- your employee gets ill due to excessive computer use
Business interruption insurance
In case something is stolen or damaged and you lose income.
What’s typically covered by business interruption insurance?
- you can’t trade because of stock, contents, or building damage
For example:
- your inventory is damaged and you lose income because you’re unable to sell
- your work laptop is stolen or damaged and you can’t run your business
Read more about business interruption insurance
Stock insurance
In case something bad happens to your products.
What’s typically covered by stock insurance?
- items you sell are stolen, purposefully broken, or damaged by fire or flood
For example:
- you run your business from home but your house floods and your stock is damaged
- your stock is stolen from the warehouse where they're stored
- your products are damaged as they're loaded into a van
Read more about stock insurance
Legal expenses insurance
In case a claim is made against you or you're subject to an HMRC investigation.
What’s typically covered by legal expenses insurance?
- legal costs associated with employee disputes
- HMRC investigations or tax and compliance issues
- legal costs linked to property damage or trespassing claims
For example:
- you’re investigated by HMRC and you need help with tax enquiries
- you need to defend your legal rights after firing an employee
Read more about legal expenses insurance
How much does online business insurance cost?
Find out how much you’ll pay by comparing prices from a range of trusted insurers. You choose what goes into your policy, so you only pay for what you need.
Prices start from £3.19 per month
Get your quotes in 7 minutes – prices are guaranteed for 30 days.
Get your tailored quotes in 7 minutes
*How we work out example prices 10% of our customers paid up to £38.32 a year for a public liability insurance policy between 1st April 2023 - 30th June 2023. Equivalent to £3.19 per month based on a monthly cost when paying for the policy in one annual payment. Paying monthly is usually more expensive as you'll pay interest. Most customers pay more than this but some pay less.
Example online retailer insurance quotes, real prices
£19.86 /month
£176.54 /year
Online retailer selling clothes and accessories
- 1-2 years' experience
- Sole trader
- No employees
- based in Leeds
Public and product liability
£2,000,000
Employers’ liability
Not included
Stock
£10,000
How we work out example online business insurance quotes These examples are real quotes from our online system (created 03/03/2023). They’re based on a range of factors, like employees and location. Your own quote will be based on what you tell us about your business. Prices may go up or down from day to day, so the prices you’re quoted may differ to the ones you see here.
What kind of excess should I expect?
An excess is an amount you pay towards any claim you make on your insurance. For example, if your excess is £250 and you make a claim worth £1000, your payout will be a maximum of £750.
Insurance cover | Lowest excess | Highest excess |
|---|---|---|
Public liability | £100 | £2500 |
Employers' liability | No excess | No excess |
Stock | £100 | £500 |
The figures above are for guidance only and any excess applying to your quote may differ. You’ll get a breakdown of the excesses for each quote when you compare with us.
How it works
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How do I choose online retailer insurance?
Making sure you have the right type and level of business insurance can be the difference between getting a claim paid and having to cover the cost of an expensive accident yourself. Read our tips for guidance on what to consider when buying a policy.
Is public liability enough for third party property damage?
Which type of workers do I need insurance for?
Does online retailer insurance cover my work correctly?
Do I need cover for other types of work?
Which public liability cover limit should I choose?
Is public liability enough for third party property damage?
You may need more than public liability to cover certain types of damage
In some situations you may need more than public liability to cover certain kinds of property damage. Learn about employers' liability and stock.
Which type of workers do I need insurance for?
Employers’ liability insurance is a legal requirement if you employ people.
If you have people working for you, including bona fide subcontractors (BFSC), labour-only subcontractors (LOSC), part-timers, or full-time staff, employers’ liability insurance is required by law.
Read on for our simplified guide to the difference between labour-only subcontractors and bona fide subcontractors.
Does online retailer insurance cover my work correctly?
Make sure you're picking the right cover to protect you properly. It’s important to know that if you have another trade or job, you'll need additional cover. For example, do you need to consider photography insurance or private tutor insurance?
Do I need cover for other types of work?
If you provide other services, make sure you’re covered
Other types of insurance
Which public liability cover limit should I choose?
Think about the maximum possible loss your business could face in the event of a claim, and make sure you take legal fees and damages into consideration. You can choose from three levels of coverage – £1 million, £2 million, or up to £5 million.
Talk to an expert
Our team of UK-based insurance experts are here to help, Mon 09.00am - 05.30pm, Tues 09.00am - 05.30pm, Weds 09.00am - 05.30pm, Thurs 09.30am - 05.30pm, Fri 09.00am - 05.30pm, Sat 09.00am - 02.00pm
Call our team
How do claims work?
Unlike price comparison websites, we take the hassle out of claims for you. We know how important it is to get your business back on track quickly – and with a minimum of fuss. That’s why you get access to your dedicated claims team any time, day or night. Call them on 0333 207 0560 or claim online. They’ll do their best to be fair and supportive.
£39 million in claims paid out in 2022
Paying 80% of settled claims within 24 hours in 2022
The figure above is rounded across our range of products. Our claims process may vary for different products and operates on a ‘claim by claim’ basis.
Example online retail insurance claim
Having insurance for online business through Simply Business has saved online retailers thousands of pounds when the unexpected happened.
Vanessa saved more than £3,400
Vanessa (not her real name) was storing her products in her basement when an underground water pipe burst. The products were soaking wet so she couldn't sell them. Luckily, Vanessa’s insurance covered the cost of the damaged stock.
Insurance payout
£3,417.64
Covering the cost of escape of water
Vanessa’s costs
£100
The excess amount stated in Vanessa’s policy terms
Chosen by 900,000 small businesses and landlords
We started out as a team of five back in 2005. We’ve grown since then with 900,000 customers across 1,500 trades now trusting us to provide their business insurance.
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Rated 4.7/5
Based on 39,717 reviews
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Online retailer insurance FAQ
Whether you’re new to buying business insurance for ecommerce or you’ve been trading for a while, here are the answers to some commonly asked questions about online retailer insurance. You can also check out our business insurance FAQs.
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 business insurance that you may want to consider, including:
- public and product liability insurance
- employers’ liability insurance
- stock insurance
- business interruption insurance
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.
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.
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.
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 check policy documentation for details and seek professional advice. Read our full Terms and Conditions
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