Insurance worry for online sellers

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One in six adults in the UK are operating an online business from home, according to research by Direct Line for Business.

The insurance broker says around 5.2 million people are buying items specifically to resell at a profit, while 2.8 million sell home-made products such as greeting cards, soaps and eBooks.

Direct Line for Business says the top five per cent of private individuals selling items on an online auction site are generating an annual turnover in excess of £18,000.

The research also revealed that three in four ‘Home Webtailers’ keep all their stock at home and the average value of the stock is £4,388.

Jazz Gakhal, head of Direct Line for Business, says although many people are generating sizeable sales, a large proportion don’t consider themselves to be running a business and aren’t insuring the goods they have.

“Stock stored at a home will not be covered by a standard home insurance policy, so people are putting themselves at financial risk,” says Mr Gakhal, adding that people transporting goods to and from home should also be insuring them against being damaged in transit.