Insurance for Online and eCommerce

Businesses that sell from a physical premises may want to consider different types of insurance than a business that only sells online. For example, Building cover protects physical buildings that you own and operate your business from. Glass cover may also be important for protecting windows and some signage in your shop.

Business insurance might be required for some businesses that sell items on many third-party platforms. For example, Amazon requires Australian sellers to have Public Liability insurance once they hit certain sales thresholds. Always check the terms of service and/or seller agreements for third-party platforms to understand your insurance obligations (if any).

Yes, insurance generally covers dropshipping businesses. Under Australian Consumer Law[SM3.1], businesses are considered the manufacturer of goods that they import or sell under their own brand. If a product you have sold and dropshipped injures a customer or damages their property, you can be held liable. Public & Products Liability covers these types of claims and can help protect dropshippers.

Yes, Product Liability should be considered by ecommerce retailers. If a product you sold causes injury to a customer or damages their property, you could be held liable. Product Liability typically covers these types of claims for ecommerce retailers. It is typically part of a Public Liability policy.