Whether you sell through platforms like Amazon, eBay or Lazada, you face a unique set of risks. Issues may arise from your product that you sell online that causes damage to third party property or injures someone. Or, they may arise during transportation, with partial or total damage to your goods. Covering the liability and your asset at all times is essential to secure your business in the long term.
ONLINE SELLER’S
INSURANCE
We have reviewed below, the key policies that you will need to consider in order to safely operate your online seller business.
Commercial general liability insurance
As an online seller, you will need to cover the liability resulting from your service and product. Commercial general liability insurance is a comprehensive coverage that combines public liability and product liability, and covers all damages caused to a third party.
Coverage should extend to countries in which you operate: if you sell in the USA through Amazon, you will need to ensure that your coverage includes the USA coverage extension.
Cargo insurance
Another key policy among the online sellers’ insurance is cargo insurance. Any online platform will require you to take full responsibility for the product until delivery at your client’s location. Any accident from the time the product leaves your supplier’s warehouse till it reaches its final destination could have a significant financial impact, especially when you ship products in large quantities. To cover this risk, you should consider cargo insurance.
Suspension insurance
When you sell on a platform like Amazon, you always face the risk of suspension of your account. Account suspension may occur due to various reasons. However, the main reason for this, with Amazon, is a change of rule or initiation of a new enforcement program. An account suspension will stop your business and you will have to face payments to various suppliers. An appeal will take time, so suspension insurance can save your business during this critical time.
Online sellers are exposed to a series of risks and platforms will have specific requirements prior to granting you access. Contact us to know more about online sellers’ insurance, and to meet your policy requirements in order to start your online business.
To collect quotes download our questionnaire below and send it back to us at hello.hk@clema-rs.com.
Commercial General Liability questionnaire
Shipping and Cargo questionnaire
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