Online Retailer Insurance Quote

What is online retailer insurance?

Online retailer insurance, also known as ecommerce business insurance, is not one specific product, but rather an umbrella term for a range of insurance policies that can cover the compensation costs and legal fees of a claim made against you and your business.

It might include cover for claims by a customer if they are injured or their property is damaged by one of your products, for claims from employees if they become injured or ill as a result of their work, or for loss or damage to your stock and property.

Whether you are the manufacturer or a supplier, if a product you’ve sold online causes damage due to a defect you could be liable because of the duty of care you have to your customers. Product liability insurance could cover your business in this scenario.

And if a supplier is involved in an accident while visiting your office or warehouse, you are responsible. Public liability would cover you in this instance.

If you have any staff that work for you in a warehouse or other commercial premises, you are legally required to have employers’ liability insurance. The exceptions are if your staff are family members, and you are not incorporated as a limited company, or are based abroad.

If you outsource your order fulfilment to a third party to process, your order fulfilment provider is responsible for its own warehouse employees. However, if an accident or injury is caused by a defect in one of your products, you may be liable – this would then fall under product liability.

Finally, stock cover will ensure you are compensated in the event that stock is stolen or damaged – for example, by a flood or a fire.

Be aware that home contents insurance policies generally can’t be used for commercial claims.

Having goods in transit insurance may also help if your stock is damaged, lost or stolen when it's being delivered to your premises or to a customer.

What does online retailer insurance cover?

What online retail insurance covers will depend on what you decide to include in your policy.

Product liability is at the core of many online retail policies and is designed to cover you for costs that might arise from a successful claim against you as a result of injury or damage caused by products you sell.

Public liability insurance can offer protection from legal and compensation costs for personal injury, theft or damage to property, and even death – for example, if a client was injured by stock falling off a shelf while visiting your premises.

Stock insurance, on the other hand, is designed to provide compensation to you for loss or damage to your stock, property or belongings – if there was a flood, for instance.

As with many types of business insurance, your cover will depend on the types of cover you choose to include in your package.

What is usually included in online retailer insurance?

As well as the above, online retailer insurance might include, but is not limited to:

• professional indemnity insurance
• business interruption insurance
• business equipment insurance
• cyber and data insurance
• personal accident insurance
• business buildings and contents cover

Many providers allow you to pick and choose which combination of insurance types you want to include in your plan. Choosing what’s best for you will depend on how your business is organised.

What isn’t usually included in online retailer insurance?

What isn’t included in online retail insurance may come down to what you choose to pay for as part of your insurance package. Many providers allow you to pick and choose insurance options.

However, commercial vehicle insurance isn’t usually covered by retail insurance. But it is a legal requirement in the UK if you use your own vehicles for commercial purposes, such as making deliveries.

Online retail insurance may also not cover you in certain scenarios. For example, if stock is stolen from your warehouse, you may not be covered if you had not properly secured your goods.

As a rule, insurance will become invalid if you do not comply with the terms and conditions of your contract so it is important to do so.

How much does online retailer insurance cost?

A number of factors affect your online retailer insurance premium. Your insurer will take into account how risky the products you’re selling are, what risks your employees face in your warehouse or other working environment, and your turnover and global reach (if you’re an exporter).