Running an online store from London or servicing UK and international customers brings unique opportunities — and also specific risks. From product liability, stock theft, cyber-attack, goods in transit, to supply chain or fulfilment failure, your e-commerce business can be exposed to claims, losses and reputational damage.
At Fraser Bond, we support e-commerce retailers, digital sellers and online brands in understanding the insurance cover they need in the UK market, how it fits with contract/venue/warehouse obligations, and how to choose policies that reflect digital-first business models.
E-commerce insurance refers to a portfolio of insurance covers tailored for online retail businesses — those selling goods (and sometimes services) over the internet rather than (or in addition to) a physical store. Key covers typically include:
Public & Product Liability Insurance – Protects you if a product you sell causes injury or property damage to a third-party. Even as an online seller you may still face claims from customers or end-users.
Stock / Contents / Goods in Transit Insurance – Protects your inventory, stock, equipment or goods while in transit or stored. Many online retailers rely on warehousing or fulfilment centres.
Cyber & Data Liability Insurance – Given that you operate online, hold customer data, payment data, manage websites, you may face data breaches, cyber-attacks or downtime exposures.
Business Interruption / Income Protection – If your trading is disrupted (warehouse damage, fulfilment failure, site hack), you may lose income — this cover helps protect your business continuity.
Employers’ Liability Insurance – If you employ staff (warehouse, fulfilment, office, or remote assistants) this cover is legally required in the UK.
These combined policies support an online retail business by protecting both your assets and your liability exposures.
Operating an e-commerce business in the UK (and especially based in or servicing London) presents several factors elevating your risk profile:
Although you may have no high-street shop, your business still handles stock, deliveries, returns, potentially warehouses, and may fulfil orders from multiple states or internationally.
You may sell to many customers, and one faulty product (even if you sourced it via a third-party) can expose you to claims for personal injury or property damage.
Cyber/data risk is heightened for online businesses: if your website is breached or you lose customer data, the financial and reputational damage can be significant.
Delivery, fulfilment and goods-in-transit exposures: your stock or orders may be in transit or stored off-site, increasing risk of loss or damage.
Clients, marketplaces, fulfilment partners or warehouses may require proof of insurance (public/product liability, stock/inventory insurance) before you partner with them.
As London-based seller, your cost base (warehousing, logistics, fulfilment) may be higher, and you may be dealing with international shipping, returns or fulfilment complexity—heightening risk.
Having tailored e-commerce insurance gives you peace of mind, helps you meet partner or marketplace requirements and safeguards your business continuity.
When selecting your e-commerce insurance policy, here are typical benchmarks and key factors to review:
Some online retailers can purchase public liability or product liability cover starting from £5-10 a month (for very limited turnover/single-owner operations).
Coverage limits depend on size of turnover, product risk, stock value, geography of sales, number of employees, and whether you stock goods or dropship.
Key cost-drivers include:
Turnover/value of stock held and sold.
Nature of goods sold (higher risk goods = higher premium).
Whether you hold stock in warehouse, goods in transit, overseas shipping.
Whether you employ staff or operate fulfilment centres.
Level of cyber risk/data held (customer payment data, website infrastructure).
Claims history and previous incidents (product recall, data breach).
Important policy features to verify:
Are product liability and public liability clearly included for online-sold goods?
Is equipment, stock and goods in transit cover included (or available as extension)?
Is cyber/data liability (and website/business interruption) included or available?
Does the policy cover your sales geography (UK only or worldwide)?
Are fulfilment partners/third-party warehouses covered under your policy or do they need separate cover?
Do you operate a pop-up or physical shop component? Ensure the policy includes those exposures.
Are exclusions listed for your specific goods (some policies exclude certain high-risk goods).
Fraser Bond recommends this structured approach:
Define your e-commerce model clearly – Are you selling your own manufactured goods, reselling third-party goods, dropshipping, holding stock in fulfilment centres?
Map your risk exposure – What goods do you sell? Where are they stored/transported? Do you hold customer data? Do you ship internationally?
Check partner, marketplace and contract requirements – For example if you sell via Amazon, Etsy or major marketplace, they may require certain insurance minimums.
Select cover types and limits aligned with your risk – At minimum product liability/public liability + stock/inventory cover + cyber/data if applicable.
Review policy wording & exclusions carefully – Ensure your goods, fulfilment model and geography are covered; verify the policy covers goods in transit, overseas shipping, dropshipping as relevant.
Use an insurer or broker experienced in online retail risk – E-commerce has specific exposures; generic business insurance may not address them.
Maintain documentation and proof of insurance-readiness – Marketplaces, fulfilment centres, warehouses may request proof of cover.
Review annually or when business changes – If you increase turnover, add more stock, expand internationally or change fulfilment model, your cover should evolve.
Fraser Bond delivers advisory services tailored for e-commerce businesses (especially those operating or based in London) by:
Understanding how your online retail model links with stock, logistics, fulfilment, cyber/data risk and contract-partner obligations.
Reviewing your insurance setup to ensure cover aligns with your risk profile, goods type, fulfilment model and geography.
Supporting you in presenting your insurance credentials (policy certificate, wording summary) to marketplaces, logistics partners or investors.
Advising you on integrating insurance into your business growth strategy — protecting your assets, continuity, reputation and commercial relationships.
With our guidance, you’re not simply buying insurance — you’re protecting your business, your customers and your future.
If you operate an online retail or e-commerce business in London or the UK and want to ensure your insurance is properly aligned with your model, visit FraserBond.com or contact our London advisory team for tailored guidance on e-commerce insurance, stock/inventory cover, liability, cyber/data risk and how to choose the right policy for your online business.
