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Insurance - do i need it

(6 Posts)
Lauraadele18 Fri 16-Mar-18 12:31:13

Hi,

I am looking to start up my own business buying wholesale fabrics and selling them to the public. Im not entirely sure what if any insurance i need - i continue to google different types of insurance and i dont fit in any type of category?

I will be selling online only, i will not make or alter any products so do not need public/product liability? I dont provide advice etc so dont need professional indemnity?

A scenario i thought of was if my client purchased fabric online and a week later purchased another batch of the same fabric but it was a slightly different colour and they were in fact making a product for their client they may try to bring a claim to me that they have suffered financial loss? Would this be my fault or the manufacture i purchased the fabric from at wholesale?

I cant seem to find anyone to help me. You guys are my last hope!

Thanks,
Polz

OP’s posts: |
Poshindevon Fri 16-Mar-18 13:54:56

You could look at
Business interuption, if your business has to close after fire, flood or any circumstance where you are unable to trade,covers your profit and continueing overheads.

Business contents.
You dont say where you will store the fabric to be sold on line. If they are stored on your premises, the fabric could be stolen or lost. Also computers and other office equipment are covered.

Will you work from home are you renting? Your home insurance may not cover your business, so you may need buildings insurance.
Talk to a reputable insurance broker for more information. All the best.

rslsys Fri 16-Mar-18 14:45:19

I think you should consider public/product liability and possibly employer's liability.

If some one was to claim they were poisoned or had an adverse reaction as a result of exposure to a piece of your material, you would need insurance.

Likewise, if a friend was helping you take boxes of stock to your car for dispatch and fell over, you COULD have an employer's liability claim - even though you did not employ them and weren't paying them!

Lauraadele18 Fri 16-Mar-18 17:14:26

Thanks huns. Think i will get public/product and legal advice included just in case, for the sake of a few quid a year its worth it even if i dont need it - i will have peace of mind smile

OP’s posts: |
thecatstrousers Sat 17-Mar-18 11:48:11

Some things could be covered in your terms and conditions when an order is placed. It's well known that colour can vary to a degree between batches of fabric, so you could point out in your T&C of ordering that if more fabric is required at a later date the shade may vary slightly.

You could also include information about issues such as fire retardant qualities and ideal use of fabrics. You don't really want to be giving out refunds because people have used fabric for unsuitable projects.

delilahbucket Sun 18-Mar-18 16:55:57

You need product liability, stock cover, business interruption and it's worth having public liability.
The scenario you have described with regards to colours being different across batches is not something someone could sue for. Just put a disclaimer about colours being different across batches, and also about looking different on different screens.
Make sure you are compliant with the Consumer Contract Regulations and Sale of Goods Act.
Do not expect good wholesale discount from fabric suppliers unless you are spending thousands and thousands with them. It will take time to build up relationships.

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