What type of insurance should I get for my new business?

Question

I am starting a new company that will sell a toy that is made in China. I have Trademarked my logo for the toy and I will be selling it here to retailers and customers. I wont have a physical store (only online) but I will have a small warehouse. What type of insurance do I need? General Liability? Product Liability? What can I expect to pay for an annual premium?

Answer 1

If you don't get general liability with product liability and broad form vendor's coverage, no one will let your toy go on the shelves of their store.

If your manufacturer doesn't have product liability coverage, including you as an additional insured, you're not going to be able to buy it here.

Figure, with China's reputation for lead paint, etc, this is going to cost you a MINIMUM of $2500, assuming your gross sales are less than $100,000.

Answer 2

Definately General Liability and you should be able to get some sort of product liability to safeguard you against product failure.  I'm not sure what you'll expect to pay for premiums due to not knowing how large of a company you are starting off as.

Call a couple insurance companies and have them meet with you. They should be able to help you with your needs. Be sure and compare apples to apples and ask a ton of ?'s.

Good luck.

Answer 3

General Liability, Products Liability, Workers Compensation if you have any staff, Umbrella Liability for sure, property coverage for your warehouse and good, transit coverage for your good while being shipped from China.

What you pay will depend greatly upon your sales. I can tell you the products liablity/umbrella liability will be expensive. You've seen the problems with products manufactured in China, right? Imagine a childs toy....................very risky and very expensive coverage.

Good luck.