Public Liability Insurance

[moo-tique]

Hi,

If you run an online business and trading as a sole trader with no retail premises, do you need to take out public liability insurance? Is this an optional requirement as a sole trader?

Thanks,

Dan

 

[Alan]

Technically I don't think you need 'Public' liability, as long as you never exhibit or sell elsewhere. However as a sole trader it would be wise to have 'Product' liability insurance, just incase one or your ceramic cows splinters and blinds some one or other unlikely event - as you don't have the safety net of a limited company and legal claim would eat into your personal assets.

http://www.simplybusiness.co.uk/insurance/product-liability/

 

[Talay]

Technically I don't think you need 'Public' liability, as long as you never exhibit or sell elsewhere. However as a sole trader it would be wise to have 'Product' liability insurance, just incase one or your ceramic cows splinters and blinds some one or other unlikely event - as you don't have the safety net of a limited company and legal claim would eat into your personal assets.

http://www.simplybusiness.co.uk/insurance/product-liability/

Isn't the onus for product liability insurance on the manufacturer ?

 

[Alan]

from the link provided

Even if you haven’t manufactured a faulty product, you could still be liable for it if you have sold it. You are liable if your business name is on the product; if your business has repaired or made changes to the product; if you imported it from outside the EU; or, if you cannot clearly identify the manufacturer or the manufacturer has gone out of business.
Otherwise, the manufacturer or processor is responsible. Still, a retailer will have to prove certain things; for example, that the products were faulty when supplied to you.

 

[laurap]

Just to clarify, public liability is not legally compulsory but many business may want to see that you have liability cover before allowing you to do any work for them. If you trade online then you are probably low risk and an annual policy of £1m cover could be as little as £50 for the year depending on what you are exactly doing.

Public liability policies normally automatically cover products liability as well. Even if you think there is no way anything could happen, I would still get the cover for this price.

 

[CSnotepad Virtual PAs]

from the link provided

Hmmm very interesting. I shall feed this back to some online owners I know who may or may not be aware. Thanks

 

[MorrisChesterfield]

I'm am just just sorting my public and employers liability for my self storage and property/site clearance company. I am getting quotes near a £1000.00.

I've just had one from reason global insurance for £503 but I have a feeling that's just for self storage side of things!

It's crazy!

Ben.

 

[TheGuru2010]

As others have touched on it isnt a legal requirement so its down to your choice, I would look at the cost (it really isnt as much as you would think) - you would get the products liability with your public liability (if requested). We do some great working from home packages & internet retailers policy's - give me a shout if you would like some costings.

Jamie

 

[deadpixelstudio]

As other's have said, with no public accessible premises for your company, and if you do not demo at trade shows or exhibitions, then I would say that Public Liability Insurance is not required (but optional).

I would certainly look into the Product Liability Insurance and, if you have employees, then obviously Employer's Liability Insurance.