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Old 04-25-2007, 02:40 PM
 
Location: NJ/SC
4,292 posts, read 13,721,608 times
Reputation: 2610

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That's dudette....

Thanks for all the advice from everyone.
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Old 04-25-2007, 05:54 PM
 
Location: Las Vegas
11 posts, read 46,158 times
Reputation: 17
Default Yes.....

Quote:
Originally Posted by Rapture View Post
Does anyone know if you need insurance for a retail online business? If most of the items are dropped shipped, wouldn't the manufacturer be responsible for most if not all liability?
Rapport,

Hello, I reside in Las Vegas and after browsing through various areas of this forum I saw your question as to if you need insurance for selling products on line. Answer is absolutely with no doubt. I do know this being an Insurance agent myself locally here in Las Vegas and I am in the process of writing a policy for a company doing the same thing you are doing selling products online, drop shipped directly from the manufacturer. Your liabilities that you have to insure are the following:

General Liability-if someone happens to sue you.

Business Personal Property-any and all equipment you use to run the business such as: Computers, Telephone, Cell phone, office furniture, data back up.

Business Income-If your office area or your whole home was damaged in a fire you would want to be reimbursed income for time lost while the insurance company is rebuilding and replacing your equipment.

You may want to check with a local insurance broker in your area and just have them run you a quote. They are generally in the range of 150.00-2500 a year it all depends on how much you need covered. Your annual sales/receipts are what will make up most of the premium.

Good luck and I hope this was helpful to you.
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Old 04-25-2007, 06:44 PM
 
Location: PALM BEACH, FL.
607 posts, read 3,369,725 times
Reputation: 391
Make sure you have a corporation so that any liability would be held by the Corp. that way you protect your personal assets. For a liability policy 1000.00 a year should cover 1 million dollars in sales.In this society of sue happy lawyers you should have a seperate company and a seperate policy from your homeowners'.
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Old 04-26-2007, 05:37 AM
 
Location: NJ/SC
4,292 posts, read 13,721,608 times
Reputation: 2610
Quote:
Originally Posted by mt12 View Post
Rapport,

Hello, I reside in Las Vegas and after browsing through various areas of this forum I saw your question as to if you need insurance for selling products on line. Answer is absolutely with no doubt. I do know this being an Insurance agent myself locally here in Las Vegas and I am in the process of writing a policy for a company doing the same thing you are doing selling products online, drop shipped directly from the manufacturer. Your liabilities that you have to insure are the following:

General Liability-if someone happens to sue you.

Business Personal Property-any and all equipment you use to run the business such as: Computers, Telephone, Cell phone, office furniture, data back up.

Business Income-If your office area or your whole home was damaged in a fire you would want to be reimbursed income for time lost while the insurance company is rebuilding and replacing your equipment.

You may want to check with a local insurance broker in your area and just have them run you a quote. They are generally in the range of 150.00-2500 a year it all depends on how much you need covered. Your annual sales/receipts are what will make up most of the premium.

Good luck and I hope this was helpful to you.
Yes, thank you....

When you say general liability, do you mean if someone gets hurt buying one of the products? That's what I'm most concerned with.
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Old 04-26-2007, 05:39 AM
 
Location: NJ/SC
4,292 posts, read 13,721,608 times
Reputation: 2610
Quote:
Originally Posted by dennis s View Post
Make sure you have a corporation so that any liability would be held by the Corp. that way you protect your personal assets. For a liability policy 1000.00 a year should cover 1 million dollars in sales.In this society of sue happy lawyers you should have a seperate company and a seperate policy from your homeowners'.
Until I make enough income, I'm thinking of leaving it as a partnership, adding an LLC, would this be sufficient?
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Old 04-26-2007, 01:11 PM
 
Location: Las Vegas
11 posts, read 46,158 times
Reputation: 17
Talking Hello

Quote:
Originally Posted by Rapture View Post
Yes, thank you....

When you say general liability, do you mean if someone gets hurt buying one of the products? That's what I'm most concerned with.

If someone is hurt by one of those products the lawsuit would be against the Manufacture's GL policy not you, as you do not have anything to do with the manufacturing of these products. The following are what you would be covered for under a GL policy that you would need and please keep in mind this is only an example of one that I will be writing on May 1st-they do exactly what you are doing. Sorry for all the space it took just wanted to give a good understanding.

EXAMPLE-Manufacturers Representative-Excluding Products Policy

roperty Coverage Limits of Insurance

Special Property Coverage Form automatically includes the following coverages at no additional charge:

Valuable Papers Coverage On Premises $ 25,000
Valuable Papers Coverage Off Premises $ 25,000
Accounts Receivable Coverage On Premises $ 25,000
Accounts Receivable Coverage Off Premises $ 25,000
Money and Securities – Inside $ 10,000
Money and Securities – Outside $ 5,000
Fire Department Service Charge $ 25,000
Fire Extinguisher Recharge $ Included
Ordinance or Law Coverage:
 Undamaged Portion $ 25,000
 Demolition Costs $ 25,000
 Increased Cost of Construction $ 25,000
 Tenants Improvements & Betterments Increased Cost of Construction $ 25,000
Appurtenant Structures not more than $50,000 at each scheduled premises. $ Included
Appurtenant Structures not more than $5,000 at each scheduled premises. $ Included
Newly Acquired or Constructed Property - Building $ 500,000
Business Personal Property at Newly Acquired Locations $ 250,000
Property Off-Premises – Building $ 5,000
Property Off-Premises – Business Personal Property $ 2,500
Automatic Increase in Building: Limit of Insurance: 8% Annual $ Included
Tenant’s Glass $ 25,000
Arson and Theft Reward $ 10,000
Definition of Premises: 1000 feet $ Included
Automatic Equipment Breakdown Coverage which includes: $ Included
 Mechanical Breakdown $ Included
 Artificially Generated Electric Current $ Included
 Explosion of Steam Equipment $ Included
 Loss or damage to Steam Equipment $ Included
 Loss or damage to Water Heating Equipment. $ Included


Liability Coverages Limits of Insurance Premium

Each Occurrence $ 1,000,000
General Aggregate $ 2,000,000 $ Included
Products/Completed Operations $ Excluded
Personal and Advertising Injury $ 1,000,000 $ Included
Fire Legal Liability $ 300,000 $ Included
Medical Expenses $ 10,000 $ Included



Property Coverages Limits of Insurance Premium

Business Income And Extra Expense Actual Loss Sustained – 12 mos. $ Included $ Included
Deductible $ 1,000
Identity Recovery Coverage $ 15,000
Terrorism Coverage $

Location/Building Level:

Location/Building Information:

Location No./Building No. : 001/001
Street Address :
City, State and Zip Code :
Protection Class : 01
Class Code : 65951
Description : Manufacture's Representative Excluding Products
Construction : Frame
Year Built :
Area :

Limits of Insurance Premium


Business Personal Property $ 25,000 $ 274
Fungi Limited Coverage $ 50,000 $ Included
Fungi Limited Business Interruption $ 30 Days $ Included

Stretch Endorsements:
Premium

Stretch See Stretch Summary Attached $ 119



Stretch Summary:

Coverage Limits of Insurance

Accounts Receivable – On-Off Premises $ 25,000
Back-up of Sewer or Drain Water Damage $ Included
Brands and Labels $ Included
Claim Expenses $ 10,000
Computer Fraud $ 5,000
Computers and Media $ 10,000
Debris Removal $ 25,000
Employee Dishonesty (including ERISA) $ 10,000
Fine Arts $ 10,000
Forgery $ 10,000
Laptop Computers Worldwide Coverage $ 5,000
Newly Acquired or Constructed Property - Building $ 1,000,000
Newly Acquired or Constructed Property - Business Personal Property $ 500,000
Off Premises Utility Services – Direct Damage $ 10,000
Outdoor Property ($1,000 limit per item) $ 20,000 Aggregate
Outdoor Signs $ Included
Pairs or Sets $ Included
Personal Effects $ 25,000
Personal Property of Others $ 10,000
Property at Other Premises $ 10,000
Property Off Premises $ 15,000
Salespersons’ Samples $ 1,000
Temperature Change $ 10,000
Transit Property in the Care of Carriers for Hire $ 10,000
Valuable Papers and Records – On-Off Premises $ 25,000
Valuation Changes $ Included

The following changes apply only if Business Income and Extra Expense are covered under this policy.

Business Income Extension for Off Premises Utility Services $ 25,000
Business Income at Newly Acquired Premises $ 500,000
Business Income Extension for Web Sites $ 10,000 /7 days
Business Income from Dependent Properties $ 25,000
Extended Business Income $ 60 Days

Also, if you form an LLC this will help in protecting your personal assets and will give you tax breaks come tax time.
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Old 04-26-2007, 05:52 PM
 
Location: NJ/SC
4,292 posts, read 13,721,608 times
Reputation: 2610
Excellent! Thank you.
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Old 05-03-2007, 05:50 PM
 
Location: Chattanooga
2,071 posts, read 7,092,073 times
Reputation: 524
las vegas agent man is right.....remember...anyone can sue anyone for anything so you need to protect yourself with a GL (general liability) policy. Ask your auto/homeowners agent if he/she does this type of thing. If not, get them to refer someone to you.
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Old 05-04-2007, 11:54 AM
 
Location: Las Vegas
11 posts, read 46,158 times
Reputation: 17
Quote:
Originally Posted by TriDad View Post
las vegas agent man is right.....remember...anyone can sue anyone for anything so you need to protect yourself with a GL (general liability) policy. Ask your auto/homeowners agent if he/she does this type of thing. If not, get them to refer someone to you.
Las Vegas Agent Woman

Happy Cinco De Mayo to all,

Michele
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