Seeking advice on the correct type of business insurance

[Vyzari]

Hi folks,

I run a small business selling dry food products online. I currently have an insurance policy with Hiscox that covers Public & Product Liability, Employer's Liability and cover for my stock.

I am now looking to extend my business to start supplying to business customers as well. These customers will be typically food manufacturers looking to source ingredients.

When i called Hiscox today to enquire whether I was covered for the new enterprise (selling B2B in addition to retail) they said that I am not. And it is not something they would cover. That if I went ahead with any sales to a B2B customer, they will give me 30days notice and close my insurance.

Is this correct?

I have a business customer and potentially one that could bring in a fair bit of revenue over time, so I don't want to lose this new business. But at the same time, I don't want to be let without any insurance cover at all.

Any advice on what I can do to make this work?

 

[DontAsk]

Have you tried approaching other insurers?

 

[Vyzari]

Have you tried approaching other insurers?

Yes, so far 2 before the close of business. One said they will get back to me, the other said they can't provide cover. And to be honest, I don't really to know exactly what type of insurer to approach. So that's why i have posted here, to see if someone can guide me?

 

[Frank the Insurance guy]

Speak to an independent insurance broker - they will take time to listen, understand your business and provide a suitable quote.

I suspect your current Hiscox is a cheap "off the shelf policy" designed for retailers ie. selling directly to the end customer) - as your business will no longer fit the criteria, you will need to arrange an alternative policy which will cover both aspects of the business. Usually the Insurer will have an alternative policy they can provide cover - Have you asked Hiscox for a quote on a more suitable policy?

In terms of the cover you need, you have the main ones (Public, Products and Employer's Liability) - you just need to arrange these under a policy that can cater for the new aspect of your business.