What insurance is needed for online retailer?

[Frenchsalesadministrator]

Hi
I am surprised not to find a category on the forum regarding insurance issues/questions (or I havent find it yet) or is there a thread about what type of insurance needed in xxx industry?
I am an online retailer (start up) and I am wondering what type of insurance do I need if any?
I am the middle man, I take the order on my website and pass it on to the manufacturer who delivers directly to the client.
Thanks

 

[ScotComp]

Here you go:

http://www.simplybusiness.co.uk/insurance/shops-retail/

Or at the bottom of the page there are more examples:

http://www.simplybusiness.co.uk/insurance/

I found AXA were rather cheap when it came to my business insurance last month.

 

[lockyer]

The only legal requirement is to have Employers Liability cover if you employ anybody.

What is best for you would require a chat with a good business insurance broker.

The type of business insurance policy that is best for you hinges round where you are trading from.

If you are trading from your home, a working from home insurance policy, or a small commercial combined policy would probably be best.

I you are in retail premises then a shop insurance policy, as long as it doesn't exclude etailing, will fit the bill.

If you are trading from an industrial unit, offices, warehouse, or similar, the a commercial combined insurance policy would be better for you.

These policies can all be tailored to fit your business, and the above notes are generalisations. To make sure you buy the right policy talk to a good insurance broker.

If you need a hand just give me a shout on pm, or ring myself or Mat, on 01924 895568.

regards,

Jon

 

[TheGuru2010]

As lockyer has stated it really does depend more on the business details, my best advice is speak with a broker & talk it through.

They will provide the best policy that is tailored to what you require.

 

[Insurance Expert]

Couple of suggestions for you, the most common insurance when providing a product is Public and Products Liability, the supplier can be taken to court particularly where the manufacturer cannot be traced. As an online retailer, other risks may be important to you particularly if you hold customer information on your site and / or payment information details. Hacking or loss of data is a big exposure these days.

Hope this helps

 

[Frenchsalesadministrator]

Thanks for that. Being the middle man I couldn't see what I would be responsible for is something goes wrong and honestly I couldn't see the need to be insured.
Would public liability insurance cover the points you made or do I need public&product liability insurance?

Thanks again

 

[TotallySport]

Thanks for that. Being the middle man I couldn't see what I would be responsible for is something goes wrong and honestly I couldn't see the need to be insured.
Would public liability insurance cover the points you made or do I need public&product liability insurance?

Thanks again

You need product liability insurance becuase your customers contract is with you, so your customers sues you, then you counter sue the manufacturer, you need to be able to cover all those costs hence the need for insurance.

As already recommended ring up the insurance companies and brokers and ask for professional advice.

 

[Chris Ashdown]

When you say you are the middle man what exactly do you mean

Some e-commerce shops get orders and then pass the order over to another company to deliver the goods from their stock (Dropshipping) and you just take the money and pay the dropshipper his charges

If this it what you call being the middle man then you are wrong, the customer in this case has his sole contract with you not the drop shipper and if for instance something is wrong or causes damage to your customer then you are the one held responsible

To me a middle man would be a agent who just introduces a client to some other company and gets paid by the other company by commission or other ways

Hope this helps

 

[TheGuru2010]

A fine example of a middle man is a insurance comparison site.

As others have stated speak with a broker & talk things through - Remeber they will give you accurate advice.

 

[Frenchsalesadministrator]

When you say you are the middle man what exactly do you mean

Some e-commerce shops get orders and then pass the order over to another company to deliver the goods from their stock (Dropshipping) and you just take the money and pay the dropshipper his charges

It is indeed what I do. Thanks for clarifying that.
Is there a name for that?

 

[Chris Ashdown]

It called dropshipping but remember you are the one responsible for everything, depending on your arangement with them to sort out when things go wrong

If the customer returns a item stating he no longer wants the order will the other company take it back

Who is responsible for goods apparently damaged on arrival

Electrical goods should be fit for purpose so if a TV fails after a year they can come back to you for it to be repaired or possible refund

Read the dropshippers terms and conditions and make 1000% sure you fully understand them and do the same with the Distant Selling regulations as the customer can cancell the order and refuse to send it back yet you have to refund all payments unless your terms and conditions are written well

What sort of items do you sell