Insurance for Shopify seller using Third-party Print on Demand & fulfilment

WarrenCabral
Visitor
2 0 0

Is there a recommended insurance company that will cover Shopify sellers integrated with print-on-demand fulfilment? I am having great difficulty finding insurance because the insurer wants to know where the products will be manufactured, printed and delivered.  Could be anywhere depending on the customer location.  For USA based Sellers, there are a few companies like The Hartford.  But we are based in England.  The brokers I have spoken to say they can find insurance for Amazon FBA but not for Shopify sellers using integrated third-party fulfilment.

Replies 2 (2)

rajimulislamjoy
Shopify Partner
186 16 22

@WarrenCabral You might consider reaching out to insurance brokers who specialize in e-commerce or online retail. They may have more experience in dealing with the specific needs and challenges of Shopify sellers using integrated third-party fulfillment, including print-on-demand services. Additionally, some insurance companies offer customizable policies tailored to the unique requirements of online businesses, so it's worth exploring different options and discussing your specific situation with potential insurers.

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WarrenCabral
Visitor
2 0 0

Thank you.  I did contact numerous brokers in the UK, where I am based.  All of them had the same problem with finding cover for a typical "ecommerce" package policy.  The problem is that Shopify is a US company and the API function for third-party fulfilment means 1) a non-UK company contract with the fulfilment platform; and 2) that there is no product control by the seller. Because of the territorial limits of UK insurance policies, it is clearly a problem for UK sellers to use Shopify, which is made even more difficult when UK sellers try to integrate with print-on-demand fulfilment providers.  In my case Lulu (Canadian) and also Gelato (Norwegian).  The UK insurance policies all exclude non-UK legal jurisdictions. And the unknown locations of sub-contracted print on demand means product and public liability cover is not available.  Likewise cyber cover is not available because of the exclusions contained in the Shopify seller terms & conditions (likewise Lulu and Gelato).  Basically, the Shopify system assumes full USA location for the seller and the fulfilment, which makes it insurable by US insurers, but not non-US insurers.  If non-US sellers on Shopify with API integrations into third-party fulfilment actually look at the exclusions in their insurance, they will see that they are not covered because of the foreign jurisdictions.  That is why Amazon FBA (fulfilled by Amazon) was developed, so as to be an insurable structure.  Anyway, I continue to look for individual policies that cover my main risks as it seems to be easier to split the cover into individual lines rather than buy a single "ecommerce" insurance policy.  One solution would be for Shopify to incorporate a UK company for the purposes of contracting with UK sellers.