Insurance for an online retailer working from home?

MoscowFlyer

My wife is setting up her own online retail business and this will be done from home. Any ideas where she can get insurance from? We don't need buildings as it's a leasehold property and therefore all taken care off by the freeholders, but she's now a ltd company and will have stock held at a different location.

Will she need employers liability if she's the only director, with no other staff?

mattymoo

Should not need EL cover but depending on the size of the business it will probably be included since small business policies are sold as packages.

Best bet is to speak to a broker. Is the stock location a logistics operator? Are they insuring stock on warehouse keepers terms (limit per tonne) or is this down to your wife. Are the items imported? Is marine transit cover needed?

Does she need products liability cover in case product fails and injures someone?

Remember with commercial insurance you have little if any consumer protection since you are 2 business entities entering into the contract on equal terms. Unfair contract terms and things like the Financial Ombudsman Service do not apply here. Speak to a local broker and ask them to check the market for you.

MoscowFlyer

The stock will be held at her parents house at first until the business (hopefully) gets off the ground.

Product liability - She's not selling her own goods, only those she gets direct from her suppliers, so I'm assuming the products liability will be in place their end? All the products are coming from within the UK.

mattymoo

Products cover - the end users contract is with your wife so any claims in the first instance would be against her. The insurers would then subrogate the claim against her supplier if they supplied the faulty goods. This means the insurer will pursue a recovery under their right of subrogation against the negligent party, with the action being taken in the name of your wife's company.

What type of goods is it? Type and value may have an affect on security requirements you see. Mobile phones, jewellery, tobacco products etc will need very high security as an example.

MoscowFlyer

It's baby goods, but the problem I have is that most insurers are saying it will need to go under a home workers contract and have the buildings and contents included, but it's a leasehold property and the buildings are insured through the freeholders.

dunstonh

You need to inform the freeholders that you are in business from home because you could be invalidating their insurance.

Maz33

There's a pretty comprehensive looking section on business insurance on the Dixons website and a phone number, might be worth a look?

http://www.comparemoreatdixons.co.uk/

mattymoo

Might give you an indication but Dixons are just fronting for Call Connection who in turn merely supply call centre answering services for a variety of insurers.

Why not just speak to an insurance broker who is professionally qualified and deals with this sort of thing day in / day out and knows the best firms for this type of business and will also fight your corner in the event of a problem.

MoscowFlyer

I tried all morning with no joy, but the broking arm of HSBC can do something and they'll call me back tomorrow.