Forum Moderators: buckworks
What are the important coverages I should pay attention to for an online merchant?
Many thanks in advance.
RS.
Assuming that you are home based and that you keep your own inventory, and do no shows or other in person event: You will need coverage for your inventory. This is not covered automatically by your homeowners policy. Some companies do offer business riders (add on policies) that would work, but be sure that it covers the inventory, not just liability. You may still want liability coverage just because people sue for the stupidest reasons. It shouldn't be too expensive if you don't have customer contact. If you have any kind of face to face contact with customers during retail sales etc, then liability is almost mandatory.
If you have a store/business building then you might want to look at Jewelers Block policies which offer some specialized protections for jewelry. The problem is that they are usually geared for "normal" jewelry stores with million dollar inventories. They also are very hard to get for home based businesses.
You may also want to look at a policy that provides shipping insurance. If you reguarly ship items in that require insurance then the single premium may well be less than buying insurance from the shipper.
If you actually make the jewelry yourself there are some other specialized policies to cover your shop, tools, raw materials, and inventories. Let me know and I can point you to them.
