Public liability
Hi, I am new to Amazon FBA. I am just about to send my first product from China to Amazon FBA UK.
I am just selling as an individual (I don’t have a company and I am not even a “sole trader”). The product I sell is in the “health and personal care” category and has a small razor blade.
A friend of mine told me I should be getting a “Public liability” insurance in case I get sued by a buyer (maybe cutting themselves with the blade).
Do I really need a public liability insurance?
Is it true that a customer can sue me?
If you think I still have to take an insurance, do you recommend a public liability insurance or other kind of insurance?
And if so any pointers to some cheap insurance companies in the UK.
Thank you.
Public liability
Hi, I am new to Amazon FBA. I am just about to send my first product from China to Amazon FBA UK.
I am just selling as an individual (I don’t have a company and I am not even a “sole trader”). The product I sell is in the “health and personal care” category and has a small razor blade.
A friend of mine told me I should be getting a “Public liability” insurance in case I get sued by a buyer (maybe cutting themselves with the blade).
Do I really need a public liability insurance?
Is it true that a customer can sue me?
If you think I still have to take an insurance, do you recommend a public liability insurance or other kind of insurance?
And if so any pointers to some cheap insurance companies in the UK.
Thank you.
34 replies
Seller_hC0hNVDuILaKO
Well you aren’t simply a private individual selling off their own personal belongings, so if you haven’t registered with HMRC as a Sole Trader then you need to asap.
Has it been indepentantly checked post production to ensure the quality and make up of the item is as ordered? If not then you risk quite a lot by sending direct to FBA, you need to have the first couple of consignments sent to your own premises for inspection prior to sending to FBA, then once you have established that the supplier is sending the correct goods of sufficient quality you can proceed to sending goods direct.
Blades?
You can’t send bladed products to FBA unless you have a hazmat certificate, which you need to apply to Amazon for [click arrow below]
Hazmat info
Dangerous goods identification guide (hazmat)
Dangerous goods (also called hazardous materials or Hazmat) are substances or materials that may pose a risk to health, safety, property or the environment while storing, handling or transporting because they contain flammable, pressurised, corrosive or otherwise harmful substances. Read below for detailed information on Amazon’s policy regarding dangerous goods and your responsibilities as a seller.
While the term “dangerous good” is often thought of as highly corrosive or toxic products, it actually also refers to consumer products used on a daily basis by millions of people (such as laptops, phones, household cleaners or even cosmetics). It is extremely important for Amazon to gather information about products regulated as dangerous goods or that contain possibly harmful chemicals to prevent any safety incidents that could occur while handling, storing or transporting these items.
Important: The physical and chemical properties of a unique finished product are what defines it as either dangerous goods or not dangerous goods. There is therefore no predefined classification based on a product type, and this is why we require you to provide specific dangerous goods information and documentation, even if your product is not regulated as dangerous goods. See Required dangerous goods information and documentation for more details.
See also Examples of products that might be regulated as dangerous goods for a non-exhaustive list of common dangerous goods per product category.
Watch the following videos in Seller University to learn more about dangerous goods:
Introduction to dangerous goods
Use the Look up an ASIN tool to check the classification status of your FBA ASIN.
Please visit seller university at the foot of seller central and study extensively before proceeding any further.
Seller_64jziShTiTjOq
Oh Gawd! Another new seller who thinks they just have to order a load of cheap and possibly dodgy stock from China, send it to Amazon and sit back while the millions roll in
Seller_hC0hNVDuILaKO
Apologies, I neglected to even answer your actual question about PL Insurance.
Seriously? You are planning to sell bladed products and are even asking whether you should have Public Liability Insurance?
YES, absolutely you need this.
Contact your local Insurance broker and explain your personal circumstances, which are unique to you, and they will be able to provide a range of quotes to cover your needs.
But again, if you have NOT applied for Hazmat approval then you need to asap, as your goods won’t even be accepted into the FBA centre otherwise, or will be stranded and unsellable if they are taken in, and without Hazmat approval Amazon will not even return them to you.
Seller_DROodOAYHftnc
Oh dear - there are several potential major issues with what you are doing. The Public Liability Insurance is probably the least at the moment.
Firstly, as already said, if you are a one-man-band business then you are a sole-trader and need to be registered as such with Amazon and HMRC. As a business you can still be on the Individual Selling Plan ie. don’t pay the £30 a month Pro fees.
Also what Adrian has said about checking your stock and the rules about selling blades.
Seller_n33KwLeg9XOvi
Hmmm, back in 2004 - this may have been possible - but not anymore. (at least not on this platform)
Seller_EJIX7rqDNQJi2
In this case, I would advise you to contact a professional legal advisor who handles issues like this as anything you read on the internet are just opinions.
Seller_ZPjajjMXjCNQH
yes i recommend you need public liability as a sole trader however just be aware it wont cover every eventuality so i recommend you get professional advice on the matter to get the best cover to meet your needs, not the cheapest as you suggest.
Can you be personally sued, you bet you can as a sole trader, so again seek legal advice and consider becoming incorporated as a ltd company to protect your own assets.
Also if you are purchasing from china are you aware that amazon dont accept “invoices” (to use the term loosely) from certain Chinees suppliers like alibaba for instance. SO if you have sourced from any of these and amazon ask for invoices then you can more or less guarantee suspension if not account closure and you wont get your stock back either
I suggest you seek professional advice there are so many issues in your question from legal liability, incorporation, indemnity, insurance, invoices, tax, vat, importing, selling on amazon terms and conditions etc etc.
Seller_xrgBQZs9JggDZ
I’ve always had public liability as part of my business insurance, the reason I do this although my products aren’t potentially dangerous there is always the risk of reactions (I sell make up) Also if running a business from home ensure you have declared this to your household insurance provider or it could invalidate any claims
Seller_nJEi9aGsZ9o1L
PRODUCT Liability insurance is an absolute must when selling any goods as a business, dangerous or not and once you get into any sort of volume this will not be cheap even when sourcing goods from established UK based wholesalers or manufacturers where your insurance company can pass the liability on to the company that you bought the goods from but when you are sourcing the goods from China this is a whole new ball game!
If you are sued for death or injury caused by a product that you sourced from China the book stops with you and you are personally liable. Many insurance policies will state in the small print that you must buy from the UK/EU and will not cover you for buying from outside the EU because the risk is much higher to them (they can not pass the liability on as you cant sue someone in China). so you must spell out to the insurance company when obtaining quotes that you are sourcing from China and for this reason the premiums will rocket. There are many policies out there that you can get for £100 or less but these are not what you are looking for
If you do not get cover for sourcing goods from China, the insurance policy is not worth the paper it is written on and they will not pay out. If you do not undertake due diligence and ensure that all products sourced meet with all the legislations that surround those products they will not pay out. If you do not have the necessary safety certificates and have not checked that they are legitimate they will not pay out. If they do not pay out you will have to pay the claimant out of your own funds/sell your house to pay for it.
Becoming personally bankrupt is a real possibility if you do not have the right insurance in place and buying from China is a minefield and personally I would start buying from UK based established and genuine wholesalers first until you find your feet and fully read up on the subject
If you are buying to sell for a profit you have started a business and you need to fully understand your responsibilities and the liabilities that go with it.
Seller_Zl4t3wrkSGi8T
Just as a side note (someone else may have already mentioned this, I haven’t read through the full thread!)
If you are buying generic products from China, you must make sure these are not patented, copied or reproduced from another product in any possible way. There are so many sellers that buy stuff from Alibaba then wonder why they’ve got their Amazon account banned and are facing court cases for IP infringements.
