Hi,

I'd be interested to hear views on whether Liability Insurance is recommended in the following scenario:

Sole owner with no staff, running online DVD store from home. DVDs are sent by post, therefore no customers actually visit the premises.

Is there any reason for me to have such a policy.

Many thanks.

No.

Thanks Bookmark.

I guess my concern was just in case something ridiculous came up such as customer cuts their finger on parcel box or somthing.

I think it is ALWAYS a good idea to have liability insurance because - like you said - if something rediculous comes up you would want to be covered.

I would recommend that you at least look into the pricing of such insurance and then weigh the cost vs. benefits to see if you would rather close shop or have an insurance company settle.

Also, what kind of business are you? Are you incorporated? Can you (personally) be help liable? If so, get insurance for sure.


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I'm covered by state farm. Had a heck of a time trying to find someone to insure an ecommerce business.

I just happen to be an insurance agent by day (and my wife's e-commerce consultant at night).

"Liability insurance" or General Liability Insurance will protect the business in case you cause bodily injury or property damage to someone or their property. It can also protect you for your completed products or operations as well as personal injury.

So, what kind of events can General Liability Insurance cover? Well, here are some examples:

1. your product injures someone
2. your product damages someone's property
3. you print or say something bad about your competitor
4. any of the above done by an employee

If you have "Hired and Non-Owned Auto Coverage" on your General Liability policy you would be covered for hired auto liability (you rent a UHaul for a few days) or non-owned auto liability (your employee uses his personal vehicle to run an errand for your business).

If that employee in his own vehicle causes an accident that injures someone or damages someone's property and they were "on the clock" then you may be liable.

I could go on and on about other types of insurance coverage, but since the question was just about liability insurance I will leave it there.

Hope this helps.