A question for the business ebay sellers

masterkay

Hi,

I thought I'd post here as I might get some luck. I know some people run very successful businesses on ebay or part of their business on ebay and I was wanting to know what business insurance you go with if you have any?

I've just started a new business venture of selling on a website I made and I'm finding it hard to get cover because I ship to America or just covering selling on a website seems to be a pain in itself. I thought those who run businesses on ebay may have similar experiences.

Any thoughts or advice is welcome.
Thanks

RFW

What exactly do you want covering? I don't understand why shipping to America should make a difference, unless you want in transit cover.

Business insurance is like most other, in that it varies between postcodes.

Have you got business premises?

Do you need public liability?

You'll probably be best going for a broker, I haven't any reccommendations, you may be best getting a local yellow pages and use a broker near you, they'd be best finding who works best in your area.

masterkay

Thanks. I don't want in transit cover. I don't want building and contents insurance as it is already covered on another policy. I just want stock and equipment covered with the usual public liability. I am informed (by the insurance companies I've tried which is about 10) that many insurance companies will not cover a company selling items over the internet due to what they call cyber-risk and the fact that America has such a sue-happy culture that they cannot provide cover to anyone who dispatches items outside the UK as the risk is too great. Even when just dispatching within the UK I keep getting the same response of we cannot cover another who sells items on a website due to cyberrisk.

I've tried all the big names and I'm getting a big fat no as soon as I mention that I sell items on the internet. I've left my details with a few brokers and they should be getting back to me soon. I had to phone a comparison site and they said no as soon as they heard selling items on the internet they said no.

So many people sell online these days I find it hard to believe that you cannot get insurance for this.

Even the company I use for my other businesses (consultancy, design and manufacturing) have said no.

TKPeters

It sounds like either you are asking for too much cover (public liability) or not explaining yourself correctly, as all that is needed is for the stock to be insured

We only insure our stock (Building is owned by the local borough council) & as we don't allow personal collections from our unit, we don't need public liability insurance.

If more than yourself is working at the premises you'll need employee insurance

RFW

You have contents insurance. What exactly is it you need public liability for? AFAIK it is for people in your premises, ie customers in a shop, etc.There are some policies that cover you for someone having a problem with goods you have sold, but that would depend on what you sell.

I'd suggest talking to a broker, at the very least they'd tell you what the policy you are looking for is called.

masterkay

Thanks for the replies.

There is specific equipment that I want insured that won't be covered by any other policy, nor would the stock. Public liability is needed if you do demo shows or anything like that which I will be doing (the show organisers often ask for proof of this). No customers will be at the site of business so I don't need anything for that.

I am very clear. I say I want to cover stock and equipment and the occasional public demo.
I tell them I keep the stock on a locked warehouse on my property and that's OK but when they ask I how sell the items and I mention a website they say no we cannot provide cover to anyone who sells on the internet because of cyber-risk

The website is completely secure with 128ssl and I do not deal with credit card details but a third-party recommended by my merchant bank account handles all that. That's not really important as I'm not wanting to insure my actual website or what goes on in it.

I'm not even sure what cyber-risk is nor what they think American's will be suing about.

I am surprised at the nos. I tried a couple of local brokers and they said they'd call me back but no word as yet.

I don't want to omit how I sell the items. I'll try again tomorrow and speak slowly.

RFW

Federation of Small Businesses might be a good place to start then. Might be worth joining as they have insurance offers for members. Can't remember all the details, its a while since I was a member.

Also try Business Link website http://www.businesslink.gov.uk/

ceanothus

I took out insurance with Brighter Business, they seem very clued up about online trading and can tailor the policy to exactly the bits you want. I have stock insurance, public liability and most importantly Product Liability with them, along with the usual legal costs and business interruption cover. I don't ship outside the UK so I haven't asked the question about trading with the US, but they are probably worth a go.

From memory, stock of £50k (with seasonal adjustment), public liability £2m, product liability £2m and the other bits and pieces came out just under £300 per annum. Worth it to sleep easy!

Not sure if I'm allowed to post a link here, but if you google for their name they are right up top. Hope this helps

RFW

ceanothus wrote: »

From memory, stock of £50k (with seasonal adjustment), public liability £2m, product liability £2m and the other bits and pieces came out just under £300 per annum. Worth it to sleep easy!

Where in the country are you? That's certainly a good deal if you're within ten miles of Manchester!