Insurance for selling online
Cover built from scratch, just for online retailers
With Superscript's online retail cover you can get:
• Protection for your stock, equipment and profit
• Cover for using third-party logistics (3PL) warehouses such as Fulfilable, Farfill, JLI Fulfilment, 3P Logistics, Bezos.ai and more
• Cover for dropshipping businesses, subject to conditions
• £5,000 cover for your products when out for delivery in your business' own vehicles
• Up to £5,000 cover for your products when they're out for delivery with a postal service or courier such as Royal Mail, DHL, Evri, Yodel, Parcelforce and DPD
• Cover without providing an itemised product list, as long as you don't sell anything from our excluded items list
• No fees or penalties to change or cancel your cover
• Instant access to policy documents
• Cover for imports from China
• Cover for sales to customers in the USA (up to 25% of your turnover)
Selling on Amazon?
Superscript's flexible insurance can cover the risks associated with selling on Amazon, including meeting Amazon's minimum insurance requirements for selling to customers in the USA.
The right mix of covers
Public and product liability insurance
For businesses that sell physical products online (or a pop-up shop). Protects from third-party claims (for instance by a customer, a supplier or a member of the public) of accidental injury or property damage as a result of your business activities or the products you sell.
Buildings, contents and stock insurance
This cover protects property either owned by, or leased to, you at your business premises. You'll be covered for damage to the building or the loss or damage of the contents and stock inside. You can choose whether to get cover for your stock at either your own premises and/or at a third-party logistics (3PL) warehouse.
Business interruption insurance
This will reimburse your profits lost for up to 18 months following damage to your premises, up to a limit of £2.25 million. It will also reimburse up to £25,000 of lost profits in the case of interruption caused by damage to a UK supplier or third-party logistics provider’s premises.
Once you've completed a quote, you'll be able to view a summary of cover. Please always refer to your policy documents for full details of exclusions, terms and limits of your customised cover. Read our guide to understanding your policy documents.
Cover for dropshipping businesses
Superscript's innovative insurance product allows dropshipping firms to be covered, even if the products they sell are shipped directly to customers from around the world, rather than a UK warehouse.
You'll just need to be able to either inspect a sample of 5% of your products or maintain rights of recourse against a UK or EU-based manufacturer or wholesaler.
No itemised product list required
Change the products you sell whenever you want, you don’t even have to tell us, as long as you don't sell any of the following items:
- Live animals
- Any products that need to be medically prescribed
- Products that don’t meet health or safety requirements in the United Kingdom
- Any product that's sale is subject to legal age restrictions in the United Kingdom
- Products you know to be faulty or unsafe
- Second-hand electrical goods
- Vehicles, aircraft or watercraft (or components of them)
Product delivery cover
With Superscript's online retailer insurance, you'll get up to £5,000 damage cover for your products when out for delivery in your business' own vehicles.
Plus, you can add on up to £5,000 cover for your products when they are out for delivery with a postal service or courier such as Royal Mail, DHL, Evri, Yodel, Parcelforce, DPD and others.
It's worth noting that this cover does not include the deterioration of your stock left in a delivery vehicle. To be covered against theft, the vehicle must be securely locked, and it must be kept within a locked building or in locked enclosed premises between 9pm and 6am.
Online retailer insurance FAQs
What is online retailer cover?
Online retailer insurance is designed to protect businesses that sell products online or have an e-commerce platform from claims that could cause them financial loss. There are a few types of cover that are relevant for online retailers, including product liability, business interruption and cyber insurance.
The types of claims covered include accidental injury or property damage to a member of the public, theft or damage of stock or business equipment such as phones or laptops, as well as downtime or fines due to data breaches.
Do I need business insurance for my online retail business?
Most business insurance isn't legally required. The only exception to this is employers' liability, which is legally required for almost every business that has employees.
In addition, many businesses choose to buy covers as a duty of care and to protect their business. This can include product and public liability, business equipment and business interruption to protect their online retail company from potential claims that could arise.
How much does online retailer insurance cost?
The cost of your premium will vary depending on several factors, including the type of cover you want, the level of cover selected and your location.
What is covered by public liability for online retailers?
Your public liability insurance will cover your liability for paying legal and compensation costs in the event of a claim made against your online retailer business by a member of the public (including customers) if they are injured – or their property damaged – by your business's activities.
Your online retailer insurance from Superscript includes both public liability and product liability cover, meaning that you're also covered if a member of the public is injured – or their property damage – by the products you sell, even if you did not manufacture them yourself.
Can I insure a dropshipping business?
Yes, Superscript's revolutionary online retailer insurance product can cover you for running a dropshipping business. In order to be covered as a dropshipping business you will need to:
- Physically inspect a sample of at least 5% of the stock of all the items listed for sale on at regular intervals and keep records of this.
And/or
- Maintain rights of recourse against a UK or EU-based manufacturer or wholesaler for all products you sell in relation to faults and safety issues.
Are there any products that cannot be insured as an online retailer?
Unfortunately Superscript are not able to offer you cover if you sell any of the following items:
- Live animals
- Medical devices or pharmaceuticals, or any products that need to be medically prescribed
- Products that don’t meet health or safety requirements in the United Kingdom or that cannot otherwise legally be sold in the United Kingdom
- Any product that's sale is subject to legal age restrictions in the United Kingdom (including but not limited to e-cigarettes/liquids, fireworks, knives, axes, crossbows, weapons, solvents, butane)
- Products you know to be faulty or unsafe or you know are subject to a product recall or safety notice
- Second-hand electrical goods
- Vehicles, aircraft or watercraft (or components of them)
Will my products be covered while in transit?
Yes, you will automatically get up to £5,000 worth of cover for goods in transit in your business' own vehicles. you can also opt for an additional cover for up to £5,000 for products whilst out for delivery with a UK postal or courier service.
Does my insurance cover selling products to customers in the USA?
Under the terms of Superscript's online retailer insurance, you can have up to 25% of your turnover coming from sales to the USA and Canada and still be covered. However, a higher excess of £2,500 applies to claims related to business in North America.
Will I be covered for running an offline pop-up shop?
Yes, your online retailer policy includes £5,000 of cover for property at a pop-up shop (for up to 90 days) as well as £5,000 of cover for your property at an exhibition or trade fair.
To be covered, your pop-up shop needs to be in a rented shop unit that is built of standard construction, and not a shed or market stall.
The £5,000 limit covers both your stock and contents at the pop-up shop or exhibition stall.
Can I increase the cover for my stock at busy times of the year?
Yes, because of the seasonal differences in the amount of stock you may need to hold, we automatically increase the amount of stock covered by 30% for November and December in the run-up to Christmas, as well as for 14 days before and after bank holidays.
Will my chilled or frozen stock be covered in the event of a power cut?
Yes, we include £2,000 of stock deterioration cover in the event of an unexpected power outage.
What does "rights of recourse against a UK or EU-based manufacturer or wholesaler" mean?
If you are a dropshipping business, then in order to be covered you'll be asked to agree that you can:
"Maintain rights of recourse against a UK or EU-based manufacturer or wholesaler for all products you sell in relation to faults and safety issues".
By “maintaining rights of recourse”, we mean:
(1) the supplier of your products is either UK or EU-based; and
(2) in your contract with them, you have not waived your right to enforce common law liabilities and responsibilities through the UK or European court system.
If you cannot agree with this statement, then you can still be covered for dropshipping as long as you physically inspect a "sample of at least 5% of the stock of all the items listed for sale on at regular intervals and keep records of this (inspection)".
The content on this page applies to policies first purchased on or after 14/12/2022. If you have an existing policy bought prior to this date, please see your policy documents for specific details of your cover.
Authorised by the FCA
The FCA supervises UK financial services firms to protect consumers. We are directly authorised and regulated by the FCA and our Firm Reference Number is 656459. These details can be confirmed on the Financial Services Register at www.fca.org.uk or by calling the FCA on 0845 606 1234.
A-rated financial strength
Our insurance products are underwritten by Standard & Poor’s A-rated financial strength or higher. This means the underwriter has been independently assessed by the world’s leading credit rating provider and found to have a strong capacity to meet financial commitments (pay claims).
Protected by the FSCS
If you are a business with an annual turnover under £1m, charity with an annual income under £1m, or trust with net assets under £1m, then you will be entitled to compensation from the FSCS in the unlikely event we cannot meet our obligations. Full details and further information on the scheme are available at www.fscs.org.uk.