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Online retailer insurance can protect against a multitude of risks facing anyone with an ecommerce or online retail business. Whatever you sell online, whether it’s handmade jewellery, baked treats or vintage clothes, insurance can help protect against the unexpected.
Even though your business is on the web, it’s just as real as a bricks and mortar store. This means there are still risks you have to protect yourself against. Without the right cover, your finances could be under threat if the unexpected happens. From your stock being damaged or stolen to a customer being injured by one of your products, a lot can go wrong.
At Markel Direct, we offer specialist ecommerce insurance that can protect you against risks like these, and many more.
Cover at a glance:
- Public liability cover up to £5m
- Protection for product liability and customer claims
- Suitable for e-commerce and marketplace sellers
- Stock and equipment cover optional
What is online retail insurance?
Business insurance for online retailers is there to protect you against the financial risks connected to selling products on the internet. It can include different types of cover depending on the size and nature of your business - from public and product liability insurance for online retailers, to property insurance, and cyber insurance.
Each online shop is different. For example, you could have a side hustle selling hand-knitted scarves and hats on Etsy or work full time sourcing and restoring antique furniture, and then selling it online. We offer tailored policies designed to meet your specific needs, giving you peace of mind in the event of a claim.
Cover starting at
£5 a month*
*Price based on an online retailer requiring £50,000 of cyber and data risks insurance cover.
Do e-commerce businesses need insurance?
Whether you’re a sole trader with a turnover of £1,000 a month or a company of 15 turning over £1m, running a retail business involves certain risks. What if there is a break-in, fire, or flood that results in your stock being damaged or stolen? Would you be able to afford to replace the affected items yourself? Or perhaps a product you sell causes a customer to be injured or become sick, and this triggers an expensive compensation claim. In a case like this, could your finances cope with the legal fees and damages owed?
There are many other potential problems that could put financial strain on your business too. From supply chain issues or technical failures that prevent you from processing or fulfilling orders to cyber-attacks that compromise customer data, you need to be ready for anything. By choosing online retailers insurance from Markel Direct, you will have the right financial protection so you’re not left out of pocket if something goes wrong.
What insurance do I need for an ecommerce business?
There are various types of insurance for online retailer business owners. When you get a quote online, we will ask you a few simple questions about your ecommerce store and offer you the relevant types of cover. You can choose to select some or all of them based on your individual business needs.
Why choose Markel Direct for online shop insurance?
When you’re looking for financial protection for your business, you want an insurer you can trust. That’s where we come in. Here are just some of the reasons why it makes sense to choose Markel for your online retail business insurance.
✔ Happy customers
We always put our customers at the heart of what we do. This is reflected in the excellent customer ratings we have on Feefo.com.
✔ Great value cover
Because we offer tailored ecommerce insurance policies, you’ll only pay for the cover you actually need. And our pricing is transparent too, so you won’t be hit by unexpected fees.
✔ Legal advice when you need it
You never know when you might need access to legal advice, which is why we provide a 24/7 legal helpline run by experienced solicitors.
✔ Quick quotes
Get a quote from us in 90 seconds. Simply enter your details on our online form and we’ll crunch the numbers.
✔ 25 years’ experience
We’ve been providing businesses with insurance for more than a quarter of a century and know exactly what our customers are looking for.
Example policy documents
If you have an existing policy with us, please sign in to view your policy documents.
Below you will find examples of the documents provided.
Tailor your online retailer insurance in minutes with these covers
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Product liability insurance for online retailers
Product liability insurance protects you if a product you sell harms someone - injures them or makes them sick - or damages their property. As your business is based on selling products, this cover is often considered essential.
Example of a claim:
A customer has bought some organic skincare products from your website, and it has made them very ill. They bring a claim against you for damages. Your legal costs can be covered, plus any compensation you are liable for.
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Public liability insurance for online retailers
Public liability insurance ensures that you’re protected against claims made by members of the general public who have sustained an injury, become unwell or had their property damaged as a result of your business. You can choose from £1 million to £5 million worth of cover.
Example of a claim:
A supplier trips over a loose cable while attending a meeting at your office. They go on to make a personal injury claim, seeking compensation. Public liability insurance provides protection for this, plus any legal fees.
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Professional indemnity insurance
If you provide professional services for a fee, such as designs or advice, as part of your business, you may benefit from taking out professional indemnity insurance. This covers compensation and legal costs associated with claims of professional negligence made by third parties.
Example of a claim: You are designing and making a wedding dress for a client and make a mistake with the measurements. The dress doesn’t fit and can’t be fixed without changing the design of the dress. The client wants their money back and compensation.
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Employers' liability insurance
If you have employees working for you, you are legally required to have employers’ liability insurance in place of at least £5 million. This ensures your business is covered for any compensation claims made against you by your employees if they become injured or ill while carrying out their job.
Example of a claim:
While picking orders for dispatch, an employee drops a heavy box of stock on their foot. They make a claim for compensation for the injury and lost earnings.
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Property damage insurance
Property damage insurance - also known as office and business equipment insurance - provides financial cover for costs involved with the replacement or repair of your business premises and its contents. This insurance provides cover for accidental loss or damage caused by fires, theft, and floods. Our property damage policies can include portable equipment too.
Example of a claim:
There’s a burglary at your premises, all your stock is stolen, as well as computer equipment. Everything will be replaced quickly and easily without you having to worry about the cost.
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Legal expenses insurance
Available up to a value of £100,000 legal expenses insurance helps to cover the costs of legal disputes. This can include the costs associated with personal injury and debt recovery claims.
Example of a claim:
One of your suppliers sends you a batch of stock that you believe is sub-standard, they disagree, and you get into a lengthy contract dispute. Fortunately, your legal fees are covered
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Cyber insurance
As an online retailer who sells their products online, you might benefit from cyber insurance. This type of cover protects you in the event of a data breach and can help provide financial help towards informing customers, loss of profits and restoring data.
Example of a claim:
You are a victim of a targeted cyber-attack that shuts down your website and holds your customer data to ransom. Cyber insurance can help you meet the ransom demands and get everything back up and running.
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Occupational person accident insurance
Occupational personal accident insurance protects you if you’re unable to continue to work as a result of an injury you suffered doing your job. Depending on the type of injury sustained, this cover provides weekly payments or one lump sum.
Example of a claim:
While climbing a ladder in the stock room, you fall and badly hurt your back. A weekly payment during your recovery would help to ease the financial burden while you are unable to work.
How it works
Choose the cover you require
Get a quote you need in minutes
Buy online or contact one of our advisors
How much does online shop insurance cost?
There is no one-size-fits-all when it comes to pricing. Starting from just £5 per month, the cost of your ecommerce sales insurance cover will depend on a number of factors, including the size of your business and the types of cover you need. The easiest way to find out how much your insurance will cost is to get a quote online.
Ready to build your quote?
Our simple quote process will help you to find the right business insurance for your individual needs.
Frequently asked questions
These frequently asked questions are designed to help you and include questions relating to policy cover, pricing and ‘technical’ terms.
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What insurance do I need for an ecommerce business?
There are various types of insurance that can protect online businesses, including cyber insurance, product and public liability insurance for online retailers. For a full breakdown of the covers you may need, please see the ‘Do ecommerce businesses need insurance?’ section above.
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Do I need online shop insurance if I work from home?
If you run an online shop from home, you will need appropriate online retailer insurance. Even though you don’t work in a commercial premises, you will still face a number of financial risks. For example, you should strongly consider getting public and product liability cover, and if you have any employees, you are legally required to take out employers’ liability insurance. You might need other forms of financial protection too, such as cyber insurance and property damage insurance.
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Do I need liability insurance to sell online?
As an online retailer, it is important to make sure you have appropriate public and product liability insurance in place. There is always a level of risk involved in selling products to customers, regardless of whether this is done online or face-to-face. No matter how careful you are, there is a chance that members of the public will suffer injury or property damage because of the products you sell, and without suitable cover in place, you could be left facing significant costs if a claim is made against you.
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When should I get ecommerce insurance?
We advise you to get online retailer insurance before you start selling your products to customers. Making sure you have suitable financial protection in place from the outset will minimise the risks to your business.
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How is Markel regulated?
Markel is regulated by the Financial Conduct Authority and Prudential Regulation Authority. You can visit the Financial Services Register to find out more.
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