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Business insurance for your ecommerce business

If you sell anything online, this insurance policy is tailor-made for you

Small business insurance the way you want it: clear, affordable and on your terms

What insurance is available for my ecommerce business?

Why choose Lukango?

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We get that every business is unique

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We’re jargon free and make it easy to arrange your cover

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We offer competitive and affordable rates through our insurer partner, Markel Direct

Insurance for ecommerce businesses

Through our partnership with one of the UK’s leading business insurance providers, Markel Direct, Lukango can offer its customers access to a range of insurance covers, such as: public & products liability, stock insurance and employers’ liability insurance for ecommerce businesses, giving you peace of mind that your business is covered.

    Here are a few of the things Lukango ecommerce business insurance could protect you from

    • The public is injured by your product or from your business activities
    • Your stock is damaged or stolen
    • Your employee is injured or gets ill through work
    • You provide inaccurate professional advice
    • Your business is the victim of a cyber crime
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    What ecommerce business insurance should I consider?

    The only legal requirement for your ecommerce business is to have employers’ liability insurance if you employ staff.

    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?
    • If a hacker gets a little too close for comfort and causes an interruption to your business how would you get back up and running?
    • Ecommerce business insurance can help protect against risks like these, meaning you can keep operating should the worst happen.
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    What types of ecommerce businesses can be protected?

    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.

    Some popular types of ecommerce business that can be insured include:

    • 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.

    Get a quote for tailored ecommerce business insurance today!

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          Frequently asked questions about Ecommerce insurance

          • 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?

            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 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, Stock Insurance can help protect you should your stock get stolen or damaged.

          • 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 insurer partner Markel Direct’s ecommerce policy provides a range of insurance cover for both your stock and the products you sell, including protection against claims brought 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 insurance consideration 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. Our insurer partner Markel Direct pair product liability with 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.

          • What is ecommerce insurance?

            Ecommerce insurance is a type of business insurance that is specifically designed for ecommerce businesses or the online selling part of your business. It is designed to protect your small business against things that can go wrong when you create, design, make or sell-on products to customers through your online shop.

          • What does Lukango ecommerce insurance (arranged and administered by Markel Direct) include? include?

            You’ll be offered Public & Products liability, Stock & Business Equipment insurance, Employers’ Liability insurance, Professional Indemnity, Directors & Officers insurance, Legal Expenses cover, and Cyber & Data Risks insurance. You can pick and choose what is right for you and make sure you are covered for the important things that protect your small business in the event of a problem springing up!

          • Why do you need insurance for your ecommerce business?

            Ecommerce insurance gives you peace of mind in case something goes wrong. If you sell products online, figuring out the right range of insurance covers like public & products liability, stock insurance and employers’ liability insurance for ecommerce businesses can protect you, your business and your customers. We can help so get in touch with us!

          • Should I get a policy tailored specifically to my business needs?

            It can be difficult getting the right ecommerce insurance coverage. So by spending some time working with Lukango’s insurance partners, you’ll be able to tailor a policy that works for your small business. Lukango believes every small business owner deserves ecommerce insurance cover that is tailored and designed with you, for you.