insurance for e-retailers

[keypieces]

Hi everyone, I've recently set up a new business that will sell authentic designer sunglasses,jewellery and accessories. I'm in the process of having the website designed and organising stock.
The question I hope you can help me with is: I will manage my shop from home but iam outsourcing the warehousing and delivery of my stock to a fulfillment company. Does anybody know which insurance cover i should ask for? i have spoken to several insurance companies who say I should take out 'work from home' insurance but that will not insure my stock which is warehoused elswhere.
Many thanks,
keypieces

 

[dabpc]

Hiscox are very good at pointing you in the right direction. PM me if you need details.

 

[keypieces]

Many thanks, I'll check them out:redface:

 

[Christiane]

I use Towergate.

 

[KateCB]

Hi, what usuallyl happens is that you take out the Home business insurance, and the people you are using to fulfill charge you a percentage for insuring your stock as it is now in their building/responsibility area - I think if you talk to your fulfilment house.company you will find that their contract covers insuring of your stock, which options to increase the level for additional fees.
Hope that helps!

 

[Simply Business]

You are not responsible for the stock cover. The fulfillment company should be insured for your stock.

You'll need a home office insurance, additional cover would include Public Liability.

Try to find some quotes online or speak to somebody on the phone. If you want you can give us a call for advice.

 

[keypieces]

Hi, thanks for your responses. Yes my fulfilment company does have cover for stock held with them but it is only £100 per ton, this is not enough for me. I will be selling designer sunglasses and accessories so I need to have additional cover. Waiting for some companies to get back to me..will keep you posted.
Thanks again :redface:

 

[lockyer]

Hi, from reading the thread, and the amount per ton, I am guessing you are talking about cover for the goods whilst in transit from the supplier to the client.

If they are coming from abroad you need to look into MarineTransit insurance. If from the UK, you really need to be cutting abetter deal with the courrier. Are the glasses coming in small numbers, or large shipments?

jon

www.lockyers.co.uk

 

[Tomasd]

We have the same problem - finding insurance for stock whilst it is in our stockroom. All the insurers mentioned above want to include stuff like marine insurance - unnecessary as we don't ship by sea, public liability - not needed no employees outside the partners who are all family, equipment insurance - not needed covered already, product liability - not needed. The result is a quote to cover £65,000 of stock that is more than the cover for the entire house and contents! Our household insurers will not cover the stock, and those that would, would only cover up to £10,000. It would seem that insurers either do not understand the real needs of home-based retail internet companies, or are just trying to rip us off. Not impressed with the insurance sector at all!

 

[alanc]

We have the same problem - finding insurance for stock whilst it is in our stockroom. All the insurers mentioned above want to include stuff like marine insurance - unnecessary as we don't ship by sea, public liability - not needed no employees outside the partners who are all family, equipment insurance - not needed covered already, product liability - not needed. The result is a quote to cover £65,000 of stock that is more than the cover for the entire house and contents! Our household insurers will not cover the stock, and those that would, would only cover up to £10,000. It would seem that insurers either do not understand the real needs of home-based retail internet companies, or are just trying to rip us off. Not impressed with the insurance sector at all!

You can get larger amounts of stock insured under your home insurance by buying a more up-market policy -one designed for higher-price homes. They treat the stock as a valuable item, and such homes tend to have higher-value items lying around.

My home insurance has some hilarious things covered:
- injuries to domestic staff
- the costs incurred in scoring a hole-in-one at golf
- automatic double valuation of fine art on the death of the artist

They also cover the stock - the value is reflected in the premium.

 

[Tomasd]

Thanks! The Home/House contents are due for renewal so we'll look round. Any suggestions as to companies?

 

[alanc]

Mine is an HSBC 'Fine Homes' policy. An insurance broker may be able to fine you something suitable. Warning: it's not cheap.