eCommerce Tycoon

**Teutonic** · 06-19-2007, 05:28 PM

Hello,

I have a question from a client I am working with. A "Business" friend of her's said that if she wants to sell online she needs to get insurance to cover any mishaps that may occur. She isn't selling guns or safety equipment, she wants to sell body care products. Also, she doesn't make them herself.

Is this true? Has anyone heard of this before?

My first though was that it's not true, and that selling online is no different than selling offline - you may need insurance to cover your premises, but not the goods you sell (or are reselling).

Thanks,
Teut

**colbyt** · 06-19-2007, 07:32 PM

Quote:

My first though was that it's not true, and that selling online is no different than selling offline - you may need insurance to cover your premises, but not the goods you sell (or are reselling).

As a general rule you need a general liability policy offline. Remember anyone can sue anyone for just about anything. You think some of the big pet stores aren't going to be named as defendants in this pet food recall mess?

Online you odds are a bit better. It really depends on how deep your clients pockets are. An LLC or corp for the online would ensure protection at a modest cost.

**Learning Newbie** · 06-19-2007, 08:13 PM

Guns would involve liability in case the thing went off in transit, but there are a lot more things it would be wise to insure yourself against.

**Teutonic** · 06-20-2007, 12:26 AM

Quote:

Online you odds are a bit better. It really depends on how deep your clients pockets are. An LLC or corp for the online would ensure protection at a modest cost.

I understand that, but my client is just someone who wants to start a business on the side.

Has anyone had clients who bought insurance specifically to sell online goods?

**seolman** · 06-20-2007, 01:37 AM

There is always a risk of getting sued for almost anything in the litigious US, however - since the web site is nothing more than an order taking system with a payment module - most of these issues can be covered by your site users policies, plus a "i have read and agree to" contract upon signing up and a good general liability policy (as almost all businesses have) that should cover anything you can't cover effectively in the site users policies.

**ksmglobal** · 06-22-2007, 10:31 AM

Quote:

Originally Posted by Teutonic

Has anyone had clients who bought insurance specifically to sell online goods?

Yes, I have clients who has insurance for their online store.

It does not really matter if it is a part time or full time business you should always have insurance. This is to protect the future of your own business.

Your client also needs to know exactly what their suppliers insurance covers and who's responsible if anything goes wrong.

As your client is selling body products, what will happen if a product has a negative effect on a customer? What happens if they come out in a large rash?

Please tell your client to look into every aspect because you have to be prepared if something does go wrong.