Do Instagram sellers need insurance?

Instagram has more than stood its ground in the social media world. And selling on the platform has become a popular route for businesses. But do you need Instagram sellers’ insurance? Find out right here…

Instagram is the most downloaded app in the world. Pretty impressive, huh? The platform has more than two billion active monthly users. That’s a lot of potential customers. And perhaps most importantly, Instagram is the no.1 choice for people looking to connect with brands.

So, if you’re not promoting or selling on Instagram yet, now’s the time to do it. You can find instructions on how to create a business account here.

Insta-history

Since its inception in 2010, Instagram’s following has steadily grown. Whilst Facebook users are in decline, new, young users continue to sign up and engage with Instagram.

In fact, the majority of internet users aged 16-24 said Instagram was their favourite social media platform. Women aged 25-34 did too. So if you’re looking to reach out to Gen z, Instagram is where you need to be.

There are more than 25 million business profiles on Instagram.

Almost half of the UK population actively uses it. And more than 80% of those users choose to follow businesses.

So, we’ll let you do the maths. Instagram is a great way to reach a lot of people. Fast.

Insta-rules

If you’re using Instagram to sell your products or services, it’s important to keep up to date with their rules and regulations. If you don’t abide by their rules, you could make yourself vulnerable to a claim.

For most, insurance won’t be mandatory, but it’s still advisable to protect yourself. There are all sorts of little hiccups that can cause you big problems when selling on a social media platform. And no pretty filter is going to fix them.

Here are a few tips on how to toe the line:

• Get familiar with Instagram’s terms of use, community guidelines, and other agreements and policies. If you’re directing users to your website, you’ll need to verify your domain.
• Check the UK government’s regs and see if there are any specific rules relating to the products you sell.
• If you’re selling internationally, make sure you check the shipping regulations for each country.
• Label your products correctly and include instructions. You can find government advice here.
• If you make cosmetics or candles, check out HSE’s advice on working with fragrances, chemicals, and essential oils.
• Make sure your products are CE marked if necessary.
• Be honest and open in your product listings. Tell customers how their product’s made and what to do with it. Don’t make claims you can’t back up.
• Make sure customers know how to contact you and are aware of your return period (14 days minimum).

Instagram sellers' insurance

So…there are a lot of rules. But don’t let that scare you.

There are several different types of insurance for Instagram sellers. Just pick the ones that are most relevant to you. Then you’ll be free to concentrate on putting smiles on Instagrammers’ faces. And on putting your business well and truly on the map.

We’ve outlined the types of Instagram insurance you’re most likely to need if you’re a social media selling sensation:

• Product liability insurance. This’ll protect you if something you sell causes harm to something or someone. Such as an adverse reaction to face cream. Or a faulty electrical item causing a fire. Whatever problems unfold with the items you sell, product liability will cover your legal fees and any compensation you owe.

• Stock and property insurance. This is to cover your stock if it gets damaged or stolen. It’ll also cover fixtures and fittings, equipment, and anything else you use to run your business if disaster strikes. Fire, flood, theft – life can be unpredictable, so preparedness is key.

• Public liability insurance. If you’re coming into regular contact with couriers, suppliers or customers, public liability is there to cover you for third-party accidental injury or damage claims. Say a courier trips over a mountain of unsent parcels, or a customer falls over your stand at a pop-up event. Public liability will pay for your legal defence and any compensation awarded.

• Employers’ liability insurance. If you hire anyone who isn’t part of the family, be it part-time or even voluntary, it’s a legal requirement to have employers’ liability insurance. It’ll cover your legal costs and compensation payouts if one of your employees becomes injured or ill as a result of working for you.

• Cyber insurance. If you’re an Instagram seller, we’re guessing most of your business activity is online. That makes you vulnerable to cybercriminals who can shut down your business and steal your sensitive data. Cyber insurance will help to get you back on your feet quickly after a cyber-attack, with IT and legal experts at your disposal.

Insta-nt success

Selling on Instagram can be a really fun way to sell products, project your brand and engage with customers. As long you’re keeping up to date with all the latest social media dos and don’ts and have the right insurance for your Instagram shop, you’re on the right track to making your Insta business a success.

Having insurance isn’t a legal/contractual requirement to sell on Instagram. Yet. But it’s a good idea to keep your eyes peeled for changes. Amazon US now insist UK sellers have product liability and public liability insurance in place if they make over a certain amount.

If you’re an influencer, with a sizeable Instagram following and you promote others’ products, you’ll need influencer insurance. You can find more info on influencer advertising here.

For help with Instagram sellers’ insurance or to get an online quote, click here. Or call 0345 222 5391 to speak to a member of the team.

Image used under license from Shutterstock.