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.