BUSINESS INSURANCE for Ebay marketplace selling

[futuretech_liquidations]

Just curiuos to know if other sellers have had a hardtime getting Buiness CGL Insurance for their eBay Canada selling. I run my ebay businses from my home and i have had nothing but problems trying to get a homebased Business insurance combined with a home policy that would cover both my home and my business.

Because I sell electronics - acrosss USA and Canada, most insurance companies would not give me a quote except for one but the cost was crazy epensive over $2k which is way more than my home policy - combined its costing over $3,500 per year - just to sell on eBay.

What & Who are other sellers using for their business Insurance needs?

Thanks

TIM - FTL

[edubb101]

Hello,

I used to work in the industry up until the end of 2020.  Trying to get a first time CGL with no commercial experience can be tough.  It all depends on what your selling and how much revenue you are making in a year.  Then there has to be a market that wants to take on the risk.  I can remember electronic industries being very pricy owing to a lack of markets available.  So your quoted price makes sense.  

I can also remember setting up a general CGL policy for someone who sold just general merchandise.  Their revenue was only around $10k a year yet the CGL policy was $1,200.  Hardly worth it.

Some home owners policies have some coverage but it will be very minimal.  Maybe $5k to $10k of coverage for business property only.  You'll have to read your wordings to see if there is any property coverage.  There would be no liability extension from your homeowners policy to your business hence needing the CGL.  Compare the CGL price you were quoted with your annual revenues to see if it makes sense for you. 

I wish you all the best

[femmefan1946]

Since you sell electronics this will be useless, but for sellers of collectibles, I would recommend Hugh Wood International of London Toronto and New York.

We have used them for decades with satisfaction. Because they specialize in collectibles, they are flexible and understanding about the particular quirks of dealing with hobbyists, like cash purchases, travel to shows, shoptheft, losses in transit, water and fire damage, grading and certification.  HWI is the insurer for the American Philatelic Society, including their shows and bourses and their circulating books. They only do contracts.

There are also companies which do one off insurance, usually of shipments in transit.

And of course, Cookie Jar Insurance, which just means raising your prices by a small amount and putting that virtual insurance premium into a virtual Cookie Jar, using the accumulated sum to pay for occasional loss or damage claims. This works better in some categories than others.