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Business Insurance

What’s the best insurance options to cover fraud and expensive items being sold on consignment ? 

Message 1 of 27
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26 REPLIES 26

Re: Business Insurance

What type of seller buys insurance?

Message 2 of 27
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Re: Business Insurance

It's really a personal decision, but hopefully others will come along soon with advice.

 

Many use what they call the cookie jar method, where you put aside a portion of every sale so that you are covered when and if something happens.  If nothing happens, then you build a nice nest egg for you.

 

Others use the insurance that their carrier provides.  However, some of these have a reputation for possibly being difficult when it comes to a pay out.

 

I know that isn't very helpful, just some basics.  I doubt the cookie jar method will be useful for you at this point because to be effective, it needs to have been implemented some time ago, to build up a fund.  But just a thought for the future, maybe.

Message 3 of 27
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Re: Business Insurance

It a safety net. 

Message 4 of 27
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Re: Business Insurance

Insurance can't protect you against fraud.

 

Insurance has nothing to do with consignment.

Message 5 of 27
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Re: Business Insurance

Insurance has to do with consignment if they are holding inventory for others and asking about property insurance not shipping insurance.

Message 6 of 27
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Re: Business Insurance

What type of insurance are you inquiring about?

Message 7 of 27
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Re: Business Insurance

I'm not sure about fraud but State Farm has excellent business coverage, they are who I used when I was selling online for others. I also use them when I had my Festival business traveling from state-to-state selling stuff.
Message 8 of 27
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Re: Business Insurance

We use Hugh Wood International, a British firm with offices in London, New York and Toronto.

They are specifically a firm that insures collectors and the dealers who sell to collectors.

In addition to the usual fire, water and shoptheft coverage they will cover your stock on the way to shows and at shows.

 

They have been for most of this century the insurer for the American Philatelic Society.

For example, when APS showed the world's most valuable stamp at their International Exhibition a few years ago, HWI not only insured the stamp, and all the others in the Court of Honour, several million dollars value, but also the exhibits themselves, another few million and the stocks of all the dealers at the show.

 

They are able to understand how fast a dealer stock can change. Or a collection.

 

Here's how good their coverage is.

APS has a thing called 'circuit books'. A collector puts his unwanted items into a book and mails it to another APS member. The next guy takes what he wants from the book, then mails his payment to the owner and the book to the next guy on the list. Some 50 members later, the book returns to the APS. Think about that. HWI insures the books. There are a few thousand of them circulating at any given moment.

 

Hugh Wood does not usually do one offs (although they will do temporary* additions ) only selling annual policies.

 

They do insure other types of collections and dealer stocks.

And yes, including consignments.

 

 

 

 

*We used them when we brought this item back to Canada. https://sparks-auctions.com/auction-25/

It sold for $285,000 Cdn before buyer's premium and sales taxes. The consignor was pleased.

 

 

Message 9 of 27
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Re: Business Insurance

The Penny Magenta was the 'most valuable stamp' but most of these were in the same exhibit.
https://www.catawiki.com/stories/4461-the-top-10-most-expensive-stamps-in-the-world
Message 10 of 27
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Re: Business Insurance

Does Hugh Wood International insure against fraud?

Message 11 of 27
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Re: Business Insurance

Depends on the 'fraud'.

They do insure against theft.

 

I don't know the American staff, but Gina is their officer in Toronto and is the one we've always dealt with.

https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapid=166569874

 

http://hwcanada.com/

Message 12 of 27
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Re: Business Insurance

Insurance that covers us as a company with with us selling valuable items of our clients just in case the item gets returned and we have already paid the consignor the and they refused to give the money back to us to cover returns.
Message 13 of 27
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Re: Business Insurance

They offer that insurance in the states ?
Message 14 of 27
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Re: Business Insurance

Yes.

The links I gave were to the Bloomberg report on the US arm and to the website for the Canadian arm.

 

About consignments.

We don't pay out to consignors until the transaction is complete. This may include a period of time during which the purchase is being 'expertised'. If the purchase gets a bad certificate, the transaction is not complete, the buyer gets a refund (if he has paid) and the consignor doesn't get paid.

Some of this is esoteric and pertains specifically to philately which has a strong history of handshake dealings and respected expertising bodies.

The situation has more to do with our public auction which is not eBay, although we do have it online and support live internet bidding.

 

 

Message 15 of 27
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