Ecommerce Business Insurance
If you sell products online, then ecommerce business insurance can protect you, your business and your stock.
We offer a range of insurance covers; public & products liability, stock insurance and employers’ liability insurance for ecommerce businesses, giving you peace of mind that your business is covered.
Find out more about insurance for ecommerce businesses below, or click below to register your interest for product launch:
Lukango ecommerce business insurance protects you if
Your stock is damaged or stolen
Your employee is injured or gets ill through work
What insurance do you offer for my ecommerce business?
We have developed our insurance for ecommerce businesses so you can focus on important business decisions. We can cover you for:
- Public Liability Insurance: Cover for accidental injury or property damage of a third party caused by your business activities.
- Product Liability Insurance: Cover if a product you sell or manufacture causes injury or damage.
- Stock Insurance: Protects your stock in case of theft, loss or damage.
- Employers’ Liability Insurance: If your business has employees, then this is a legal requirement to cover against claims made by employees for illness or injury caused by their work.
Do I need ecommerce business insurance?
The only legal requirement for your ecommerce business is to have is employers’ liability insurance, and only then if you have employees.
However, even though you might not be running a ‘bricks and mortar’ shop there are still risks involved with operating an ecommerce business.
- If something were to happen to your stock, would your business still be able to function?
- If a customer makes a compensation claim against you, would your business finances be able to cover it
- Ecommerce business insurance can help protect against risks like these, meaning you can keep operating should the worst happen.
What types of ecommerce businesses do you protect?
Every online store has its own way of working and either sells from a self-built dedicated website or with one built using the one of the many drag-and-drop online store platforms like Shopify.
We protect all types of ecommerce business that you are probably using or familiar with:
- Business to Business (B2B) online shops: You focus on supplying products or service direct to other businesses
- Business to Consumer (B2C) online shops like: Amazon, Shopify, Glossy Box: You focus on selling your brand to individuals
- Consumer to Consumer (C2C) sites like: Ebay: Nothing formal here, just a simple model of selling stuff
- There are also Business to Government (B2G) ecommerce selling platforms or a blend of a couple of models like Business to Business to Consumer (B2B2C)!
With so much opportunity to build your brand online with your own digital shop, selling your products on an online ecommerce platform is fast-paced and exciting.
Frequently asked questions about Ecommerce
- What companies are ecommerce?
When you think about ecommerce, companies like Amazon that started way back in 1994, Alibaba and Ebay probably spring to mind. But to be an ecommerce business, you don't have to be one of those giants.
An ecommerce business (or online retailer), includes anything from selling secondhand stuff on Etsy, selling products on your own branded online shop built using a platform like Shopify, through to the techy business owners who sell stuff from their online shop they have built from scratch themselves. Lots of small businesses also sell through social media platforms or even social posts.
Ecommerce businesses benefit from all of the growing technology and tools that mean your customers can buy your products or services from the comfort of their laptops or mobile phones. Want to get started selling online? Take a look at this blog.
- What type of insurance is right for my ecommerce business?
Lukango has you covered. In a nutshell your insurance needs depend on what you sell online. At Lukango we offer:
Public Liability which will cover your customers for property damage or injury caused by your business. If you have lots of things to sell, Product Liability covers any injuries or damage as a result of using your products. Once you have people working with you, Employers' Liability which will make sure you are protected if one of your employees is injured or gets sick at work and if your money is tied up in your stock, we can help you to cover this should it get stolen or damaged with Stock Insurance.
- Doesn’t my home insurance cover the products I sell?
The short answer here is that unless you have advised your home insurer that you are using your home, Dad's office or garage to store your business stock, then this policy is unlikely to provide the cover you need.
Our e-commerce policy provides insurance cover for both your stock and the products you sell, protection against any claims bought about through your interaction with the public or even if you have any employees
- What insurance do I need if I sell things online?
What insurance you will need depends on many different things such as what you sell, who you sell it to, where you sell it - to name just a few.
A core part of Lukango's offering for people who sell things online is product liability insurance. Whether you create, dropship or upcycle products, product liability coverage protects you and your business against the cost of compensation caused by injury or damage to property caused by a faulty product. We pair product liability with our public liability insurance. Public liability insurance offers protection for your small business to cover against accident claims and legal fees, if a member of the public is injured or their property is damaged, as a result of your business operations.
- Do I need public liability insurance for my online ecommerce shop?
Whether it is for your home, mobile phone or valuable stuff, the core purpose of insurance is to cover you for damage or loss. The same applies to insurance for your business.
Public liability offers protection for your small business to cover against accident claims and legal fees, if a member of the public's property is damaged, or injured as a result of your business operations.
- What do small businesses sell online?
Did you know that the leading source of shopping inspiration online is Amazon and that the most common payment service in the UK is Paypal? With over 80% of UK consumers being digital online shoppers, if you are thinking of setting up shop online it may be interesting to know that the most commonly purchased items are clothes, shoes and clothing accessories!
- Will online shopping take over?
Online is taking the world of shopping by storm and putting strain on our high-street chains. People love the idea of having something ordered and delivered right to their door whether it be that sought after clothing item or fast food delivery. That said, the pop-up and gig economy is booming with entrepreneurs setting up small businesses online to get much needed items to their customers.
- Which online shopping platform is best?
The million dollar question that has multiple answers. These days platforms like Woocommerce, Shopify, Etsy and Facebook Marketplace make it easy for you to match the perfect platform with what you sell. The right online shopping platform can only be decided by you depending on how deep your tech knowledge of building an online shop is.
- Is online retail growing?
Online retail is booming with the recent announcements of well-known high-street shops like Paperchase and Argos having to rethink their brick and mortar store strategies. Online shoppers rave about just how easy it is to get what you need or desire by the click of a button. Shopping any time, anywhere and without the hustle and bustle of shops is a win for many people. Social apps like TikTok and Facebook even make it easy to purchase the products that are much loved by influencers and product experts.
- What’s online retail?
Online retail is where you buy things on the internet without having to leave your house. It's like shopping at a shopping centre but you don't have to walk anywhere or talk to anyone. Win, win. There are many small businesses who are extending the reach of their customers by complementing casual market sales with online shops.
- How do you run an online retail business?
An online retail business is one that sells products or services over the internet. There are many ways to run an online retail business, but the most common way is to use an ecommerce platform like Shopify and sell products from your very own website.
- What ways can you run an online retail business?
There are two main ways to run your online retail business. The first is by selling products or services directly on your own website. The second way is selling products or services through a third-party platform such as Amazon or eBay, or even through a marketplace like Etsy.
- Are online sales in the UK increasing?
The UK is fast becoming a nation of internet shoppers. But are we buying even more stuff online than we used to? The answer is a resounding yes according to Statista who early this year (2023) said over 80 percent of the UK population makes ecommerce purchases. This means that a whopping four in five UK consumers are digital buyers. The number of people who shop online has been steadily increasing over time, with a massive rise in recent years potentially because of COVID-19.
- Is online retail an industry?
Online retail is a booming industry that is focused on the non-physical store or shop sales from online and mail order purchases. The rapid growth of online retail has been massively supported by an increase in smartphone usage and mobile commerce. Smartphones with apps like TikTok have increased the ability to make purchases online, online retail looks set to continue to grow. Consumers of all ages have become more comfortable with making purchases not just on a laptop or computer but also on mobile devices as retailers expand their digital offerings.
- Has online shopping changed the world?
The internet has revolutionised how we shop. Small business owners trading as online retailers are able to offer a much wider range of products than brick-and-mortar shops, and they can do it at much lower prices. But there is more to online shopping than just convenience, a bigger selection of products and better prices. The speed with which you can buy goods online means that it’s easier than ever for people to do their shopping from home, or anywhere else in the world.
- What are the examples of online retailers?
Online shopping has changed how we live our lives in many ways. It allows us to order groceries when we're hungry, clothes when we need them and even have someone else pick up our prescriptions at the pharmacy. Whatever products you create, make or sell to meet the needs of your customers can be the basis of your online retail shop.