Do I Need Insurance?

[a1anm]

I run an online only shop and have all my stock at a fulfilment centre were it is covered under their insurance policy.

I was just wondering if I should have any other insurance? For example Public Liability Insurance?

Is this recommended even when you only sell online?

Thanks!

 

[Gav]

Part of a Public Liability will normally include products liability which would be worthwhile should a customer come back to you regarding a product you sold if it has caused injury etc. The Liability would be passed to your supplier but its much easier letting your insurer do this than trying to do it yourself. I don't know what products you sell but check the policy exclusions. Some will only cover limited products.

That aside the Public Liability will always be required for attending fairs, stalls, one off events you attend etc and premiums could be as low as £60 a year.

 

[lockyer]

Gav has got it spot on. probably best chatting it through with a good independent business insurance broker, as you will probably find an off the shelf package that covers your liabilities, plus stock and contents etc for less than just liabilities on their own.

ps - I doubt you are covered the way you think you are by the fulfilment centre, as they tend to be covered for warehousing risks. These only pay out if the fulfilment centre is negligent i.e one of their staff accidentally set the building on fire. but if there is no negligence such as a theft or arson then they aren't negligent.

 

[TheGuru2010]

I assume you are working from home? Alot of working from home policys will now extend cover for stock at a third party premises. As stated above I dont think the centre will allow you to claim as easily as you may think should something go wrong, I would much rather have the controll on this a little my self.

It isnt that expensive for a homeworkers policy which would cover the liabilities & the stock if you wished it to.

Has the fulfilment centre advised you of what they actually have it insured against? (IE, fire theft, accidental damage etc) - Them just stating it was insured would not be good enough in my opinion.

You will need to speak with a broker to do the homeworkers with stock at a 3rd party location as most of the online prices will be covering stock at home which is not what you want.

Jamie

 

[Jayser100]

If you run a limited company it is a legal requirement to have insurance. If you are not limited then it isn't, but I agree with the others, some sort of liability insurance would be a good idea because it will include legal cover should somebody threaten you with legal action over a faulty product etc.

 

[a1anm]

I have got in touch with the Fulfilment company to find out what exactly we are covered against so I should here back on Monday.

We pay around £75 a month for the insurance. When we had it all at home the insurance was £135 a month (we had a lot of stock!). I really struggled to get insurance and called at least 30 places before I found one that would insure us. Our goods are considered to be 'theft attractive'. I cancelled this policy when I moved everything to the fulfilment centre.

We are a limited company so I guess I will need to get something set up.

 

[Alan]

If you run a limited company it is a legal requirement to have insurance.

If you have staff (including more than 1 director who is an employee, work experience interns, temp workers etc) then you must have EL insurance. Public, product, professional liability insurance is not mandatory, but of course highly advisable where appropriate.

 

[TheGuru2010]

Let us know what the centre say to you about the insurance.