Do I need insurance to sell online in the UK?
What the law requires, what insurance is sensible, and the rules that do apply: returns and VAT.
See the templatesThe short answer: UK law does not require insurance to sell online, with a few exceptions such as employing staff, which needs employer's liability. What is sensible is product liability if you make or import things, and public liability if customers ever come to you. The rules that definitely apply are about returns, information and tax, not insurance.
Insurance that is sensible
- Product liability. Covers you if something you sold causes harm. Essential for candles, cosmetics, food, toys, anything for children
- Public liability. If people visit a studio or you do markets
- Stock cover. Home insurance often excludes business stock
- Employer's liability. Required by law the day you employ anyone
Rules that do apply
- Your business name, address and email on the site
- Prices including VAT, and delivery costs before checkout
- A 14 day right to cancel for most goods, with a refund within 14 days of return
- Register for VAT once you pass the threshold
- Tell HMRC you are trading once you earn over £1,000 a year from it
Where this sits on the site
Our shop template has a terms page you fill in once from our starter wording, and your business name goes in the footer automatically. Insurance is between you and a broker; the site just has to say who you are.
This is general information, not legal advice. For your own case, ask a broker or a solicitor.
Want to see yours? Pick a website template and fill it in for free. You only pay when you want it live. Already have a site? Bring it in and we fill a template from it.