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.
The new product from Hiscox is targeted at UK-based businesses:
- 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.
4 Responses
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.
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.