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funkygator2 · June 19th, 2008

Hello. I plan on doing a store online to sell baby clothing w/ desings. After reading a few tread regarding business insurance (general & product liability), I called an insurance co. who gave me without any property (for inventory stock, your machines, ink, and any other business property) comes to $848.40 per year. It affords the following coverages:

$2,000,000 per year liability limit
$1,000,000 products/completed operationsliability per year limit
$1,000,000 Personal Injurty/Advertising liability
$1,000,000 per incident liability limit
$50,000 damage to premises rented to you (i.e. if your business caused damage to your home)
$5,000 medical payments to others
$500 liability/property damage deductible per claimant

Is this price about the going price?

stuffnthingz · June 19th, 2008

I have similar coverage (I actually compared my plan line for line with your items listed above) for $260 per year with State Farm, you might want to give them a call.

However, I have only 8k in product coverage, perhaps you carry more $ in inventory/blanks (you did not list this value)?

Included in my rate is a rider that covers my laptop in case of damage. Since I am online my laptop is pretty critical to the business.

I recently got the insurance plan because I pack all this equipment and blanks with me to events and one day I realized, wow I have alot of "stuff" I would be very sad if something happened to it all...

Good luck!

funkygator2 · June 19th, 2008

The quote does not include my equipment which is about worth about $2K (not including inventory). My inventory is low since I am starting (demos/samples only), but I was not asked about it. I am new at this and I am trying to get the insurance first to then get everything rolling. I wasn't aware that state farm had general and product liability for ecommerce. I have them for my vehicles, I will give them a call. Also, are what is your business structure? and do you also design for babies? I was told that the fact that the clothing were for babies made a difference. Not sure if that is so? By the way thanks for the info.

stuffnthingz · June 19th, 2008

I am online selling out of my home, with a few mobile vending events a year for marketing my websites. The category State Farm's Underwriter put me in was "Catalog Sales". I even said that I do some Web consulting and they lumped it all together in that one category.

funkygator2 · June 19th, 2008

Wow!!! I like you premium much better than mine! That for sure!! What is your business structure? Do you think that could make a difference?

mystysue · June 19th, 2008

I have a store front.. and my insurance is very similar to yours in coverage.. but alos includes my equipment which is worth prolly about 40,ooo .. and a rider for others property when out on jobs.. Its in the 600.00 a year range.. .. and its thru allstate.

splathead · June 20th, 2008

$800 is too much for a home based operation.

1. Call your homeowners insurance agent and ask about the cost for a business rider.

2. Then go to here to compare costs RLI Home Business Insurance Applications and Rates and see the rates they would charge you. For liability without property it won't be more than $250 or so.

scpromos · June 20th, 2008

I have heard that if you sell products for infants or children the cost goes up due to product liability. That might be the reason it's so high, but I would definitely shop it around a bit.

peteVA · June 20th, 2008

Way too high!

Rates do vary around the country, as they are generally regulated by each state. And with all of the bad luck in Florida in recent years, I'm sure the rates are higher than most. But they should not all business policies to make up for hurricane losses.

You nee to do more shopping and frankly look at the limits. $ 2,000,000 selling tee shirts is more than I'd think you need. Most basic business policies include a $ 1,000,000 ballon that covers anything missed by the specific things mentioned. That should easily cover you.

Keep shopping. I have been paying in the $ 300 range for a real shop and real inventory.
.

splathead · June 20th, 2008

Quote:

Originally Posted by scpromos


	I have heard that if you sell products for infants or children the cost goes up due to product liability.

Toys, yes. Apparel, no.

splathead · June 20th, 2008

Quote:

Originally Posted by peteVA


	You nee to do more shopping and frankly look at the limits. $ 2,000,000 selling tee shirts is more than I'd think you need.

No, this is the limit you should get. It's standard nowadays and if you are going to do a show or festival, this is the limit the promoter is going to require.

funkygator2 · June 20th, 2008

Thank you guys. My primarly concern is having insurance incase a baby has an allergic reaction to the ink, etc. But I will definately shop arround. I wonder though, if the fact that I told him I was selling off the internet only had anything to do w/ it? Also, since the bus. will be register in florida, but would be primarly online sell, I wonder if I could get insurance from another state?

stuffnthingz · June 20th, 2008

I asked about the 2 mil and was told it was standard.

splathead · June 20th, 2008

Quote:

Originally Posted by funkygator2


	Thank you guys. My primarly concern is having insurance incase a baby has an allergic reaction to the ink, etc. But I will definately shop arround. I wonder though, if the fact that I told him I was selling off the internet only had anything to do w/ it? Also, since the bus. will be register in florida, but would be primarly online sell, I wonder if I could get insurance from another state?

Typically insurance is rated based on your home state, but will cover you anywhere in the U.S. Because you are in FL, you pay surcharges due to hurricane assessments, especially on property insurance.

You want to make sure whatever policy you buy has Products Liability. This is the coverage that would protect you against allergic reaction lawsuits.