home insurance extra cost!

[madhiker00]

I hope someone can help me or I will have to close my business down - I've been selling for almost 10 years and am a Top Rated Seller. I've been told by my home insurance (in Canada) that I have to stop selling online if I don't buy a commercial policy that will cost an extra $3,000.00 or so. This is because I'm selling to the US which puts me into an "Altered Risk Category". Has this happened to any of you? How can I circumvent this - I'm wondering if using a postal box address and changing my email address will do the trick. Any advice gratefully accepted!

[madhiker00]

I only have until the end of August to get this sorted out.

[pierrelebel]

To be candid, you are entering a danger zone.

While relatively easy to pretend not to conduct business from your home (PO Box, etc) and maintain insurance coverage as residential only, whay happens if you have a claim? A liability claim?  Will the insurance pay or decline the claim on the basis the application did not mention the commercial activities conducted on the site?  It is a tricky question.

How did your insurance carrier or agent get to know you were selling online?  Who told them?

Looking at your feedback history, I guess your annual sales are in the $4,000 to $5,000 area with net profit of $1,000 to $2,000.

I see two options -

1) consult a lawyer specializing in insurance claims and ask for assistance and advice based on your circumstances (you do not want to write that stuff on public discussion boards).  I may cost you a few hundred dollars.

2) find another agent - someone you can trust - representing another insurer and ask for advice. 

Good Luck.

[madhiker00]

Thanks for this - I've already decided to go the latter route. I have a friend in insurance checking things out for me. If that doesn't work I've decided to find some better hobbies! 

[femmefan1946]

We have a brick and mortar business, and our commercial insurance is covered by Hugh Wood International, a British company with offices in Toronto.

They cover everything including shop theft, fire, water, loss or damage while travelling to shows and at shows, lost or damaged shipments.

And the rates are better than those of larger companies, because they are specialists dealing with collectors and dealers in collectibles.

It may be worthwhile to add them to the list that your insurance friend is checking out.

[surplusdealdude]

Get another insurance agent, the one you have is nuts.

No way should it cost that much.

[madhiker00]

Thanks everyone. This is indeed a nutty situation - I still find it hard to believe what has transpired. First of all, I want to make it clear (which I did to my insurance broker) that I do NOT want insurance for my online business. I sell relatively inexpensive items and if there's ever a problem (there has only been disappointment with a few items out of thousands) I give a full refund. However, the broker I have has said she has checked with many other companies and they all say I need this commercial insurance rider to keep our house insurance. House insurance was I wanted to keep! It's because the liability of selling to the US and other countries puts me in the "altered risk" categories. So I asked the broker for specific risk possibilities. She said "if you can think of it, it can happen". I told her I would stop selling breakables - in case a buyer in the US opened the parcel and the item was broken and they cut their wrist on it! She said linens were a problem too - as if they weren't flame retardant they could cause a fire. Yes - the doilies and linen napkins I am selling would cause a house to burn down and then the buyer would come after me through my house insurance! Hard to believe - but that is the way these nutty insurance companies work. I have until the end of August - at which time to keep my house insurance I will have to pay an exhorbitant amount for commercial insurance or else sign a declaration that I am closing down my business on EBay & ETSY. Lately, I have been trying to think of this in a positive vein - there are a lot of other things I can do with my time that would be just as (or perhaps more) enjoyable.

[tobyshitzu]

The same thing has come up a number of tiems here over the past few years.  You'll get the same thing at other companies as soon as they hear online sales

[femmefan1946]

If I had a conversation like that with my insurance agent, I would be looking to move all my insurance away from that agent (even if I kept the policy with the same company).

She sounds as if she would be looking for any excuse to refuse to pay out on the policy.