As a Business are you insured for Shipping world wide

[auctiondropnship]

I would encourage you to check with your broker to see if your Ebay business is insured

We have been trying to find business insurance fo auctiondropnship our Ebay drop off store ...

Seem the problem is shipping world wide ....is were the problem is

[shoplineca]

Are you talking about shipping insurance? inventory insurance? business insurance (incl business interuption)? Are you talking about what you import into Canada to sell from outside of this country?

All my shipments out are insured through my carrier for International shipments, I dont need additional 3rd party insurance.

Can you please explain what type of International insurance needs you are talking about? Maybe its just late and I am too tired but you have me totally bamboozled as to what you are looking for!

Malcolm

[auctiondropnship]

We have been trying to find business insurance for auctiondropnship our Ebay drop off store in Canada

Seems we can get the insurance if we do not ship any items world wide and close our web site

The Business broker insurance companies and underwritters find it to much of a risk to offer anything outside of Canada

[shoplineca]

Let me take a stab at this again. I think you are saying that your current insurance broker cant find you insurance for your business because a high percentage of your goods are sold outside of Canada.

If this is correct then :
First, your agent or the insurer he is recommending is assuming that you wish for your items to be insured until they are delivered and they dont offer insurance on inventory that is outside of Canada.

Title for the goods have passed to the customer and the goods are insured by your carrier when being delivered. Your insurable coverage ends at that the point you ship the product.

As you are not selling on credit terms, you do not need to insure your receivables. This is something that Export Development Bank gets into, not most general insurers.

Tell your broker what you want insured and if all else fails, find a new broker. He may not be skilled in business insurance and may not represent the right insurers.

Where your customers are located should be of no consequence to your insurers unless you are shipping goods which might be prohibited in some countries.

Malcolm

[shoplineca]

I was replying to your 1st post when you answered me and I didnt read your reply before posting again.

I am at a total loss to understand what your broker is telling you. Is he aware that the majority of Canadian manufacturers sell at least 40% of thier production outside of Canada and they have business insurance?

Is he aware that a very large percentage of independant businesses sell at least 25% of their products outside of Canada and they have business insurance?

And all of those businesses are insuring their receivables and inventory outside of Canada, you are not.

I would suggest getting in touch with the Federation of Independant Businesses for referal to a competent broker and insurer.

The guy you have is clearly living on some other planet.

As I mentioned in my earlier response, where your customers are located is of NO consequence to them as you are not (a) insuring your receivables and (b) insuring the delivery of the goods.

You are insuring your warehoused items located in Canada for fire and theft, your employees for accidents, yourself as a Director, business interuption insurance should a fire destroy all your inventory and prevent you from operating for a while etc, your office equipment, your vehicle and so on and so on.


You are not selling food, weapons, drugs, or anything that could result in some sort of liability case and even if someone from a foreign country sued you becuase their Aunt Tilly got a sliver in her hand from one of your art pieces, the case would be tried in the Province you reside in.

Your business is a domestic business for all tense and purpose regardless of where you ship your products to.

Dont waste your time trying to convince your broker, you need a new broker becuase you dont want problems later on should you ever have to file a claim.

Malcolm

[vesivus]

Actually, this is a common problem. I first became aware of it on the MoneySense.ca forums.

I cannot insure my home business because I do internet retail sales. Period.

I've talked with 3 separate LARGE & REPUTABLE insurance companies (TD, HSBC, & Royal Bank). They won't do it.

I've spent hours on the phone trying to find an alternative to running uninsured. They won't insure my business. Period.

It really sucks.

John

[shoplineca]

John
TD, HSBC and RBC are LARGE and REPUTABLE ""BANKS"" that are in the personal and residential insurance business big time, commercial insurance, ZERO.

They are NOT really BIG commercial insurance brokers , agents or insurers. The closest that they come is they offer employee benefit insurance. They dont even insure corporate vehicles!

They wont DO IT as they told you, not because you are a home-based internet retail business but because they DONT sell commercial insurance!!!

You dont go to the gynacologist to treat your broken arm, yet they are both doctors. Sorry for sounding so pi$$ed off but I hate rumours starting over something so basic as this.

You have to go to a commercial insurance company or a broker who represents commercial insurers, not Miss Smiley at the TD Bank.

Question 1: Are your businesses registered businesses? If they are not, you dont get commercial insurance PERIOD. Nothing to do with the internet or having customers around the world.

Question 2: What in your business are you insuring?
You arent insuring your sales as there are NO receivables for your eBay sales, you arent insuring your inventory that has been sold and shipped as title has passed hands.

Here is a link to the Insurance Brokers of Canada: http://www.ibac.ca/

From that web site, you can find a broker near where you reside that specializes in Commercial Insurance and will discuss with you, what your insurance needs are and prepare an insurance package to meet your needs.

Again sorry to sound like I am blowing off steam but the majority of companies in Canada are selling a percentage of their products overseas and virtually every one of those companies are selling from a variety of venues including the internet and they are all fully insured.

I would love someone to explain to me how they see selling through the internet would make your business uninsurable, especially the agent that spoke to the OP.

One more thing, some people are under the impression that they need business insurance. That is why my question 2. asks what is it in your business that you are insuring.

If you have inventory, as the OP stated they do, then he is possibly looking for a very basic commercial insurance
policy protecting his inventory.

If you operate your business from your house and you need to protect your office furniture and computer hardwear and softwear, check your home-owner's policy, it may be less expensive simply increasing the value of your content's insurance.

If you want commercial auto insurance for transporting your inventory by car or van or trailer, then be prepared to cut a big cheque just for the premiums you would have to pay for that coverage.

Anyway, there are plenty of commercial insurance agents ready and willing to draw up a commercial policy with one of any number of insurance companies and believe me, they are all just as ready and willing to take your money.

Malcolm