Do I need insurance?

[becky]

Hi - this may be a silly question, but do I need insurance?

My DH thinks I might - I'm a sole trader selling baby gifts on line, can't think of a situation that I might insure against, but hubby is worried! So thought I should check.

[gordonthegofor]

My understanding of consumer law is that the customer seeks redress from the company that sold the item.
that being the case then when little Johnny cuts his *** on a item supplied by you you get sued
so yes get Public Liability as minimum

[DarrenC]

My understanding of consumer law is that the customer seeks redress from the company that sold the item.
that being the case then when little Johnny cuts his *** on a item supplied by you you get sued
so yes get Public Liability as minimum

Good question Becky.

Gordon, what about if the website has terms and conditions which exclude you from liability - would you still need insurance?

Darren

[bwglaw]

Good question Becky.

Gordon, what about if the website has terms and conditions which exclude you from liability - would you still need insurance?

Darren

The law says that you cannot exclude or restrict liability for personal injury or death. If you put this in your Terms and Conditions then the 'Unfair Contract Terms Act 1977' will make that clause void.

If the product caused a child some harm because it is defective, it is likely the manufacturer is liable, not necessarily the reseller.

Jonathan

[DarrenC]

Okay thanks Jonathan.

That makes it pretty clearcut for Becky's business, and sorry for hijacking the post :lol: but how would I stand if someone rented a holiday home, not owned by myself, but rented from my site - and had an accident because of something faulty in it.

Darren

[bwglaw]

Darren - simply put, the home-owner is liable provided that you are just merely advertising holiday homes and not acting as an agent. You need to make it explicitly clear that the 'contract' is between the customer and the home-owner and you have no part other than acting as a 'publisher'

Publishers have liabilities too but without going into depth and hijacking the thread you need to have a statement somewhere on your site that customers should verify the accuracy of the property and you can limit liability in this respect.

This needs to be clear in your terms of business (as discussed before)

Sorry Becky... ;)

[DarrenC]

Thanks Jonathan, I'll do some more research on this subject. Sorry Becky! :)

[gordonthegofor]

Going back to Beckys question, if she is not an agent then she needs Insurance

I still hold that consumer law states that the first port of call is the retailer

[bwglaw]

Someone buys 'Heinz Baked Beans' from Sainsbury's and discovered there was glass in the tin. Is the customer likely to bring an action against Sainsbury's, who cannot possibly be expected to check every product.

A lawyer is likely to work his way through the supply chain to establish who is likely to be liable for the 'defective product' and it is likely to be the manufacturer. A manufacturer is likely to have product liability insurance in such circumstances

It is worth seeking advice from an insurance broker who may well have clients in a similar situation. Perhaps buy 'The Retailer' magazine and there will be insurance companies that specialise in this kind of thing.