Hi all. My first post, hoping someone can help.
I've bought a 'premium' site, copy of The Auto Merch. I'm in the UK, intending to sell into the USA only to start with (without nexus, this seems easier to start than worldwide or even UK and EU, given various VAT difficulties that seem to contradict what AliDopship say - I've spoken to several tax specialists).
However... product liability. It seems insane to attempt this business without it. So, I've been calling insurance companies. Umpteen calls later and I'm no further ahead — it seems that insurers won't quote for one or more reasons:
(1) Dropshipping - full stop.
(2) Sourcing products various suppliers in China in the dropshipping model, as opposed to working with a limited number like you would to bulk order white label products, do quality control checks, and sell through Amazon FBA or similar.
(3) USA - too litigious, won't cover it at all, or will only cover if less than ~20% of the business turnover is in the USA.
So far, I've spoken to all of these, to no avail:
* British Insurance Brokers Association (BIBA): 0370 950 1790
* PolicyBee: They use Hiscox, and were pretty sure they wouldn't cover products in this situation)
* TradeX: Awaiting callback.
* InSync: Can't help, can only cover USA when it is up to 20% of turnover.
* Crendon Insurance: Awaiting callback.
* Real Insurance/USA Protect: Can't help because their insurers aren't interested where the products and suppliers are so varied. Small white label range yes, dropshipping a wider range no.
* Clifford Brown & Grimsey: Can't help, but dug out details for a specialist that might — which turned out to be Policy Bee...
* Simply Business: Can't cover dropshippers but referred me to Galaghers.
* Galaghers: Won't cover dropshippers.
* Direct Line: Won't cover dropshipping business model but referred me to Cowens.
* Cowens: Their panel of insurers won't cover products sourced mainly from China.
* Towergate: Their panel of insurers won't cover products sourced mainly from China, and USA as the target market is also a problem.
So, how on earth is anyone running a business of this kind? Between VAT complexities and non-availability of product liability insurance, I can't get started with the business and am starting to tear my hair out and wonder if I have completely wasted my time and money on this whole proposition.![Frown :( :(](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
There seem to be businesses that are operating in this model successfully, so why can't I find the way through? Am I totally overcomplicating things somehow? Have I just not found the right insurers (who, then)? Insights appreciated!
I've bought a 'premium' site, copy of The Auto Merch. I'm in the UK, intending to sell into the USA only to start with (without nexus, this seems easier to start than worldwide or even UK and EU, given various VAT difficulties that seem to contradict what AliDopship say - I've spoken to several tax specialists).
However... product liability. It seems insane to attempt this business without it. So, I've been calling insurance companies. Umpteen calls later and I'm no further ahead — it seems that insurers won't quote for one or more reasons:
(1) Dropshipping - full stop.
(2) Sourcing products various suppliers in China in the dropshipping model, as opposed to working with a limited number like you would to bulk order white label products, do quality control checks, and sell through Amazon FBA or similar.
(3) USA - too litigious, won't cover it at all, or will only cover if less than ~20% of the business turnover is in the USA.
So far, I've spoken to all of these, to no avail:
* British Insurance Brokers Association (BIBA): 0370 950 1790
* PolicyBee: They use Hiscox, and were pretty sure they wouldn't cover products in this situation)
* TradeX: Awaiting callback.
* InSync: Can't help, can only cover USA when it is up to 20% of turnover.
* Crendon Insurance: Awaiting callback.
* Real Insurance/USA Protect: Can't help because their insurers aren't interested where the products and suppliers are so varied. Small white label range yes, dropshipping a wider range no.
* Clifford Brown & Grimsey: Can't help, but dug out details for a specialist that might — which turned out to be Policy Bee...
* Simply Business: Can't cover dropshippers but referred me to Galaghers.
* Galaghers: Won't cover dropshippers.
* Direct Line: Won't cover dropshipping business model but referred me to Cowens.
* Cowens: Their panel of insurers won't cover products sourced mainly from China.
* Towergate: Their panel of insurers won't cover products sourced mainly from China, and USA as the target market is also a problem.
So, how on earth is anyone running a business of this kind? Between VAT complexities and non-availability of product liability insurance, I can't get started with the business and am starting to tear my hair out and wonder if I have completely wasted my time and money on this whole proposition.
There seem to be businesses that are operating in this model successfully, so why can't I find the way through? Am I totally overcomplicating things somehow? Have I just not found the right insurers (who, then)? Insights appreciated!