Do You Have the Right Insurance for Your Online Business?

Breathe Insurance help to ensure businesses are operating online with sufficient cover.

Do you operate your business online or have an online business in addition to your physical premises in Lincolnshire?

If so, it is important to make sure you have the correct insurance in place to protect you against the risks involved in selling goods and services online.

What type of insurance policy do I need for an online business?

The insurance you need for e-commerce should be tailored to suit your particular requirements, which will vary from business to business. Your broker will be able to advise you on the following types of cover:

- Employers Liability (a legal requirement in most cases if there is more than one person working in the business)

- Public and Products Liability

- Professional Indemnity (including Breach of Confidentiality and Libel and Slander)

- Cyber Liability Property

- Business Interruption Goods In Transit

    1. Importing from Overseas:

If you import products from overseas, remember to notify your broker, as insurers often then classify you as the manufacturer for rating purposes.This is because it can be difficult to hold an overseas manufacturer responsible for injuries or damage that occur here in the UK. You will need to provide your broker with full details of the products you import and the quality control measures you have in place.

    2. Exporting to North America:

Due to US legislation and the possibility of costly damages awards, most insurers have a North America Exclusion. It is vital therefore to let your broker know if you are selling anything or

providing services to customers in the USA or Canada, so that your insurer can extend your cover accordingly.

    3. Drop Shipping:

Contrary to common belief, if you are drop shipping, you are still responsible for the products supplied.The importer is deemed the manufacturer in the event of a claim and has a duty of care to prevent defective products being supplied to customers. Make sure your broker knows the type of products being drop shipped and what you are doing to ensure good quality control.

    4. White-labelling:

If you are white-labelling goods that you have bought from a wholesaler with your own company name and logo, you are potentially taking on the same product liability exposure as the manufacturer. It is therefore vital that you let your broker know if any of your goods are white labelled so that the cover can be extended accordingly.

Here at Breathe Insurance we have the knowledge and expertise to help you secure the right insurance cover for your Lincolnshire-based business.

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