Product Liability Insurance

[Ikemi]

I'm currently employed in an IT role, but as I have a bit of free time on my hands at the moment, I fancy trying something a bit different on the side! Essentially, importing/branding products in bulk from China to resell via various channels. I've ordered 200 units of my first branded product. I have also highlighted other high quality products that would compliment each other.

To clarify, this is just a bit of fun! If my products sell well, then I'll order more. If they don't sell - at least I tried!

I need to inform HMRC and register myself as a sole trader, but I believe it's wise to have product liability insurance, in case someone injures themselves whilst using my branded product. Does anyone else import from China and sell products? If so, who do you use for product liability cover? Hiscox?

I also read online that the first £1000 profit made is not taxable for sole traders. Is that correct?

[Insurancejon]

Yes, product liability insurance is advisable

You will need a good commercial insurance broker to place it properly give. That you are importing from china I.e if the product damages anyone then the buck is likely to stop with you

Whether it's commercially viable will depend on your projected profit, and if there is enough room for the pre,is,

Happy to have one of my guys look at it for you though

Drop me a pm with your contact details on

[Mr Pointy]

Ikemi said:

I need to inform HMRC and register myself as a sole trader, but I believe it's wise to have product liability insurance, in case someone injures themselves whilst using my branded product. Does anyone else import from China and sell products? If so, who do you use for product liability cover? Hiscox?

I also read online that the first £1000 profit made is not taxable for sole traders. Is that correct?

Why are you operating as Sole Trader rather than a limited company? Do you realise that if one of your products causes injury or loss then everything you own is on the line if for some reason the Product Liability insurance doesn't cover all of the costs.

No, there's no magic £1000 tax free profit for a ST. There are all sorts of allowances you can use to reduce any tax due but as a ST any profit is taxed in conjunction with your current salary. If you are already paying Higher Rate tax for instance, then you'll pay it on your ST profit. See an accountant before you go much further.