Insurance designed for small online retailers
For many years we’ve had a steady stream of emails coming into Tamebay HQ asking where the best place is to get insurance cover for a business selling on marketplaces like eBay and Amazon. It’s always been a difficult question to answer as many of the policies out there either cover things you don’t need (like who needs cover for cash when selling online) or have some exclusion clauses for things you do need (like cover for products sourced outside the EU).
I’ll be honest and admit that in all the years I traded on eBay it was without adequate insurance. This wasn’t because I didn’t want insurance but simply because I couldn’t find a policy that would fully cover me anyway. That might be about to change as Insurance specialist Hiscox have announced a product designed with small online marketplace sellers in mind.
We invited Sam Newman from Hiscox to tell us about their new offering:
Online Retailers’ Insurance
Hiscox, in conjunction with broker PolicyBee, have launched a new product designed with small online retailers in mind.
In the research that we did, we found that these businesses are not well served currently – existing solutions tend to be variations on shop policies. This means they can include cover that is not required, or may miss key elements. As a result, we believe some businesses may be trading uninsured, or without cover they may need.
- With a turnover of between £10k and £500k
- Who only sell online (with the exception of short-term opportunities such as trade shows and pop-up shops)
- Who may buy from all over the world, or even make product themselves
- Who want to sell all over the world
- Who may store stock in multiple locations, including their home, shed, or 3rd party storage facility
The cover is modular, and includes the following elements:
- Public liability – standard. Covers you in case you damage something or injure someone – for example, a customer or courier comes to your home to collect a parcel and falls over.
- Products liability – standard. Covers you in case a product you sell causes damage or injury to someone or something.
- Property damage – optional. Covers you in case your stock or business tools are stolen, lost or damaged.
- Business interruption – optional. May replace your lost gross profit if your business is unable to trade for one of the specified reasons, including failure of your broadband or your chosen online marketplace(s) for more than 24hours.
- Employers’ Liability – optional. A legal requirement if you have employees.
- Personal accident – optional. Pays a lump sum in the event of accidental bodily injury or death.
Cover is subject to underwriting, but this can be done quickly and easily online. Click HERE for more information.
Just called Policybee after reading this article.
Useless – Won’t cover a range of imported herbal / oils / gels / powders (tested and with relevant COA and conformation to regulatory standards)
Do NOT recommend.
Thank you for trying us for a quote.
I’m sorry we couldn’t help you this time – I understand how frustrating that must be.
This insurance is continually developing and it’s our intention that it covers as many different products as possible. But it’s not the finished article, and your feedback will help us – and Hiscox – identify how and where this policy could do more.
Again, I’m sorry we couldn’t help. If you’d like to contact me directly, I’d be happy to keep you updated as the policy develops.
All the best for your future
Concur with above. Questionable. Wouldn’t quote if I said I sold toys. Would quote if I said they were collectibles. Although it claims to cover you if you trade from a shed, the security requirements may well be hard to achieve. Also if you trade from your house – metal bars or grilles on windows required!
For electrical sellers it also excludes electrical product bought from outside the EU, so useless for all those many importers of Chinese electricals.
Yes, you’re right: we can cover collectibles, but not toys at the moment. Sorry about that. However, this could change in the future as we develop the product.
As for bars on the windows of your house, that’s not necessary. Hiscox will agree to pay up to £10,000 for claims involving unattended property – whether that’s in your house, office, shed, or a storage facility. To pay out more than £10,000 for an unattended property claim, Hiscox ask that you secure any windows with key-operated locks, or permanently screw them shut, or have bars across them.
This is still a very new product and we are continuing to work on it. Your feedback helps us to do that, and we’re very grateful.