Insurance for export only e-commerce

[Scott_]

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Hi!

Need a bit of a sanity check. Appreciate any input or advice!

Our business model is fairly simple. Buy Autralian-made products from wholesalers, sell via our own e-commerce platform and ship from Australia for the time being. We expect to move to an offshore third-party fullfillment center down the line.

My co-founder and I will work from home (an apartment that I rent) and likely won’t employ anyone in the next 3 months outside of a few freelancers through platforms like Upwork etc.

From what I can read, public liability insurance is a must and my home/contents insurance should be updated to cover the home office. Product/stock insurance become more of an issue once we are carrying more stock.

Am i missing anything here?

Thanks!
Scott

[MattDell]

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Basically correct
Suggest Public Liability is needed although can be tricky if exports include USA and Canada. When importing into Aust goods received and sold on are basically treated as ‘manufactured’ by you. Presume this is also true when exporting OS but I guess depends on the goods and the likelihood of someone OS getting cranky. If selling clothing for example most people if not satisfied would accpet a return. If selling food and you alleged poison someone a refund won’t be enough
A good Home and Contents cover will definitely cover the Home Office but most will have limited/no cover for business stock stored at home pending shipping
Hope that helps

[Paul – FS Concierge]

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Hi And Welcome to Flying Solo Scott. It is great to have you!

Thank you for joining our community and posting.

Cheers

[Dash Freight]

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MattDell, post: 270357, member: 6982 wrote:

Basically correct
Suggest Public Liability is needed although can be tricky if exports include USA and Canada. When importing into Aust goods received and sold on are basically treated as ‘manufactured’ by you. Presume this is also true when exporting OS but I guess depends on the goods and the likelihood of someone OS getting cranky.

Matt, what about a Goods in Transit policy with a storage extension? Once they have an amount of goods on site, would they not want to consider that risk? Annual policy – they can include cover for the goods they export as it sounds like they are doing DAP

Rob Dash E: [email protected] M: 61 423 136 053 Quotes: https://tinyurl.com/yae7tbj6 S: live:rd2221

[Dash Freight]

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Scott, If you buy Australian-made products from wholesalers, why would you send fulfillment offshore? There are good 3PL providers in this forum. Why export, and then ship from a 3rd party? Are these small items and small value? Or are they larger and more valuable? The answer will have a bearing on your shipping solution.

Rob Dash E: [email protected] M: 61 423 136 053 Quotes: https://tinyurl.com/yae7tbj6 S: live:rd2221

[MattDell]

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robdash, post: 270365, member: 117305 wrote:

Matt, what about a Goods in Transit policy with a storage extension? Once they have an amount of goods on site, would they not want to consider that risk?
Hi Rob – Sure this is a good idea to provide physical protection of stock items received if that is needed. Given Scott talked about working from their apartment I figured Stock holding would be minimal (which of course doesn’t mean low value) Transit + Storage or other options are available depedning on need and circumstances. The rest of my comment was more around Public Liability in particular as it pertains to import/export

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