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I'm not sure but I don't think you do, I have fitted mine and it is pretty straightforward to fit.
I think it is a worthwhile safety feature, if the return line is ruptured in an accident the engine could carry on running and loads of neat fuel at 3 bar pressure will leak and possibly ignite.
Depends on what model donor car you have. I am just stripping my donor (R25) and funnily enough removed the inertia switch just yesterday!
On the 200 (Bubble) / R25 it is located in the engine bay on the front bulkhead/firewall. Mid point at bonnet level or left of and at the same line as the radiator expansion bottle.
The Alarm - Bonnet switch is mounted with it.
Both switches have rubber boots on them and the inertia switch is the lower one of the two.