Ecommerce Businesses Insurance
Protect your online business from product claims, data breaches and delivery disputes with cover built for digital retail.
Get in touchWhat is ecommerce businesses insurance?
Ecommerce Businesses insurance is a specialist policy designed to protect retail businesses from the risks of selling products, managing premises and employing staff. It typically includes public liability, employers liability, stock cover and buildings and contents insurance.
Running a retail business involves risks from customer injuries and product claims to theft and property damage. The right insurance protects you against claims that could otherwise threaten your business.
Find insurers who understand retail and ecommerce businesses, so your cover reflects the products you sell and the channels you trade through.
Public Liability
Covers claims for injury or damage caused by products you sell online.
Products Liability
Covers claims from products you source and sell through your online store.
Cyber Liability
Covers data breaches involving customer payment and personal information.
Employers Liability
Required by law if you employ anyone, covering employee injury or illness claims.
Who needs ecommerce businesses insurance?
Online-only retailers
Selling products exclusively through a website
Marketplace sellers
Trading on Amazon, eBay or Etsy
Dropshippers
Selling products that ship directly from suppliers
Subscription box businesses
Curating and selling subscription product boxes
Regulatory and compliance requirements for ecommerce businesses
Ecommerce businesses must comply with the Consumer Rights Act 2015, the Distance Selling Regulations, and platform-specific seller agreements. Customer claims for faulty products, delivery failures, or misrepresentation must be defended, and products liability insurance covers claims arising from product defects.
If you sell on Amazon, eBay, Etsy, or Shopify, check your seller agreement for insurance requirements. Most major platforms require sellers to carry public liability and products liability cover. Amazon Seller Central, for example, may restrict your account if claims are made against you without evidence of insurance.
Data protection compliance (UK GDPR) is essential but separate from insurance. However, some policies include data breach liability cover. If you store customer payment or personal data, consider cyber liability or professional indemnity insurance that covers data security breaches.
If you import goods from overseas, you are responsible for ensuring products meet UK safety standards (Consumer Protection from Unfair Trading Regulations, product safety directives). This liability sits with the importer, so products liability cover is critical for imported goods.
How much does ecommerce businesses insurance cost?
£400–£1,200 annually for an ecommerce business with turnover under £500k and no physical premises
Real claims: what ecommerce businesses insurance covers
A customer buys a faulty electronic device that causes a minor electrical fire in their home; they claim £6,500 for damage and injury
Products liability cover paid the claim, replacement goods, and legal defence
£6,500
A fulfillment error results in the wrong item shipped to multiple customers; combined claims for refunds and compensation total £4,200
The policy covered the settlement (commercial error is typically excluded, but some policies cover contractual liability)
£4,200 (subject to policy terms)
A customer receives a product with defective packaging that leaks and damages their property; they claim £9,000 compensation
Products liability policy covered the full claim including legal costs
£9,000
WHY CECIL
Built differently.
Cover for ecommerce businesses risks
Ecommerce Businesses face specific risks from product claims to customer injuries. Cecil finds insurers who understand your retail sector and cover these risks properly.
Stock and premises protected
Your stock and premises are your primary assets. Cecil ensures your policy covers the full value of your inventory and business property.
Products liability included
If a product you sell causes injury or damage, products liability covers the claim. Cecil makes sure this is part of your retail insurance package.
Competitive quotes for retailers
Get options from specialist insurers to find retail insurance from specialist providers. Cover that reflects the specific risks of your business, not a generic commercial policy.
Common questions about ecommerce businesses insurance
Do ecommerce businesses need public liability insurance?
Yes, public liability is essential for retail businesses. Customer injuries on your premises and product-related claims are real risks that require proper cover.
Does ecommerce businesses insurance cover stock theft?
Yes, your buildings and contents policy typically covers stock theft, subject to security requirements. Cecil ensures your stock is covered at its full value.
Do ecommerce businesses need products liability insurance?
If you sell products to customers, products liability covers claims if those products cause injury or damage. It is an essential part of retail insurance.
What level of public liability do ecommerce businesses need?
Most retailers carry between £1m and £5m of public liability cover. Shopping centre landlords and market operators may specify minimum levels.
Does ecommerce businesses insurance cover online sales?
Products liability covers your products wherever they are sold. If you sell online, make sure your insurer knows about your ecommerce operations.
Do ecommerce businesses need insurance if they only sell online?
Yes, even pure ecommerce businesses need products liability insurance. You are legally liable for any injury or damage caused by a faulty product you sell, regardless of whether you have a physical premises.
What insurance do I need if I sell on Amazon or eBay?
Most platforms require public liability and products liability cover. Amazon may request proof of insurance for high-value claims. Check your seller agreement or marketplace policies for specific minimums, typically £1m–£2m public liability.
Is ecommerce insurance more expensive than retail?
Ecommerce insurance is often cheaper than high street retail because you have no premises costs and lower exposure to customer injuries. However, products liability may be higher if you sell high-risk or imported goods.
Does ecommerce insurance cover cyber attacks or data breaches?
Standard ecommerce insurance does not include cyber liability. If you store customer payment data or personal information, ask your insurer about cyber liability or data breach cover as an add-on.
What happens if a customer receives a damaged or faulty product?
Your products liability insurance covers claims if a faulty product causes injury or damage. Refunds and replacement goods are typically your responsibility, but the policy covers legal claims arising from product defects.
Interested in Ecommerce Businesses insurance?
We will be in contact when Cecil launches.