How do you insure your ecommerce business?
Business insurance is not the most sexy of subjects but for many it is a reality. Obviously many smaller concerns won’t bother with such an expense but for bigger ecommerce operators it’s vital.
The question of insuring an ecommerce business was raised by a Tamebay reader who has been in touch. He has just recently moved from a retail/shopfront business into a warehouse facility to fulfill his sales. His attempts to find a specific broker or policy tailored to his needs now a solely online trader. Previously his retail premises policy covered his online sales and now he is looking for the proper policy for his new operation
As he notes: “The broker says that he struggling to find us an insurance policy because we do not have a “written ‘Right of Recourse’ with all suppliers that, if a product we sell to the public is faulty and a claim is made against us, that this would be redirected back to the manufacturer.” Our correspondent only sources from UK suppliers.
Does anyone have any tip offs or ideas re insurance that could help in the predicament? What arrangements have you made?
I’ve not had a problem getting insurance for my online business, it covers my unit/stock/public liability etc
I have organised mine through towergate
Re: ” “The broker says that he struggling to find us an insurance policy because we do not have a “written ‘Right of Recourse’ with all suppliers that, if a product we sell to the public is faulty and a claim is made against us, that this would be redirected back to the manufacturer.”
All UK sourced trade supplies (B2B) are not covered by the sale of goods act, but read some posts from this google search, as might help:
Try Premierline – used them for several years. It is true a number of insurance companies are living in the dark ages and want bricks and mortar shop fronts.
Think the insurance industry is talking nonsense to your broker. They know full well that product liability resides with the manufacturer. However, the way it works is the customer sues you, you sue your wholesaler, they sue the manufacturer etc. That means the insurance companies have to do the work which may be the sticking point.
The other issue is what you sell. Even though my items are collectibles not suitable for under 14s, the insurance industry just lump them under the broad category of toys, and they are very wary of this area because of the liability issues.
Alot of companies I talked to were reluctant to insure me due to the fact I ship to USA, where obviously you cannot insure yourself again litigation. I eventually found a good deal with NFU Mutual