Home – New Forums Starting your journey Sounds like I won’t be able to start – insurance

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  • #967937
    scoofy
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    Hi everyone

    I am new here and looking for some advice. I’m a new mum and have been thinking about starting a small home-based business to get some extra income while looking after bub.

    My business idea is pretty simple: I would like to source baby socks & hats from overseas (most likely China) and sell them over the internet. Before I commit to any big outlays, I would test the product & markey by selling on ebay.

    I rang some insurers to check out public & product liability insurance, and it seems I wouldn’t be able to get insurance! If you import products into Australia, you are deemed the manufacturer and are responsible for your product. The broker said I have to make sure the product comply with all australian standards, but couldn’t give me any tips on how to do this. They said I would not be able to get insurance for baby items from China if I can’t show all the standards are met. They also said a basic policy costs over $1K so would not be worthwile to get if I’m only a small operation.

    So now I’m not sure what to do… There are so many people selling overseas products online – do they just not take out insurance? I would buy my products from wholesalers in China and have no idea how to show compliance to Aussie standards. Most clothing these days is manufactured in China so it should be OK.

    Can anyone offer any advice? Would I start my business venture without insurance? Selling on ebay may be fine?

    Cheers
    Scoofy

    #1029804
    Government Grant Guru
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    Tough question.

    I dont believe there is a an Australian standard for that.

    But I did hear that Pacific Brands recalled the socks with laces on them because they were a chocking hazard.
    prodimage_1546.jpg

    Government-Grant-Guru-Small.png

    #1029805
    Brooke Curline
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    scoofy, post: 35711 wrote:
    Hi everyone

    I am new here and looking for some advice. I’m a new mum and have been thinking about starting a small home-based business to get some extra income while looking after bub.

    My business idea is pretty simple: I would like to source baby socks & hats from overseas (most likely China) and sell them over the internet. Before I commit to any big outlays, I would test the product & markey by selling on ebay.

    I rang some insurers to check out public & product liability insurance, and it seems I wouldn’t be able to get insurance! If you import products into Australia, you are deemed the manufacturer and are responsible for your product. The broker said I have to make sure the product comply with all australian standards, but couldn’t give me any tips on how to do this. They said I would not be able to get insurance for baby items from China if I can’t show all the standards are met. They also said a basic policy costs over $1K so would not be worthwile to get if I’m only a small operation.

    So now I’m not sure what to do… There are so many people selling overseas products online – do they just not take out insurance? I would buy my products from wholesalers in China and have no idea how to show compliance to Aussie standards. Most clothing these days is manufactured in China so it should be OK.

    Can anyone offer any advice? Would I start my business venture without insurance? Selling on ebay may be fine?

    Cheers
    Scoofy

    Hi,
    Ring one of the big baby outlet stores and pretend to be an overly concerned mother and ask if their clothes comply with Australian standards – I am quite sure this is to do with Fire Hazard..you will see this compliance on lots of the clothes in the baby section in Kmart etc..see what response you get ! I am only aware of a hazardous paint on toys and small parts compliance for choking.
    When I was looking to import from China, I asked for their safety compliance on all of their toys. It didn’t take me long to find out who had compliance and who didn’t. If you can get proof of this to Australian standards from your manufacturer, you should be fine.
    Good Luck
    Brooke

    #1029806
    Melinda B
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    I have a friend who went through this recently – she’s a maker of cloth nappies.

    She was telling me that she requires two lots of insurance, one is public liability in case someone is hurt by her products and the other is Importers insurance because she’s importing her fabrics. Sounds like you’re in the same boat.

    No, don’t go into business without insurance. You’re risking everything. If someone chokes on a sock then they can sue you.

    Actually, I think I know a couple of other people who have had to have thier clothing tested to meet Australian standards. I don’t recall what they had to do to do it though.

    Whether other people are doing it or not is irrelevant to you. You have to decide if you want to run a business legally and properly covered, or take the risk.

    #1029807
    Ramps
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    It took me several months to find appropriate insurance for my online shop which should be up later today or tomorrow – finally anyway, I used Allianz, they gave me good rates on public and product liability.

    #1029808
    scoofy
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    Thanks everyone, I’ll do some more investigations to see what may be required, and I think I may also talk to some other brokers, maybe someone else may be more helpful. I actually rang Allianz but they said they couldn’t help me directly as I would be importing and they referred me to the aforementioned broker. Did you use a broker Ramps (and do you source products overseas)?

    I had a look at the standards, GGG, and there are some other standards re. labelling and fire safety of clothing, maybe I have to look a bit further into that.

    If anyone else who’s imported has used a broker that is recommended, I’d love to hear.

    Thanks
    Scoofy

    #1029809
    Melinda B
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    scoofy, post: 35807 wrote:
    If anyone else who’s imported has used a broker that is recommended, I’d love to hear.

    Thanks
    Scoofy
    I’m pretty sure my friend uses a broker (she’s in Bris) I’ll see if she’s happy to share the name. :-)

    #1029810
    Southerngirl
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    • Total posts: 21
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    Hi

    Contact Peter Vickers Insurance Brokers.
    I used them to get insurance as I import goods (not baby stuff but sporting goods) and I do trade stands. They got me public and product liability insurance through CGU for just over $600.

    I was only going to get Public Liability but they pointed out that Product Liability was also the way to go. Far more helpful than a couple of other brokers that I tried (One I’m still waiting for the quote after 2 years!)

    Good Luck!

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