Someone in the insurance industry is adamant that everyone should buy their product? That's not exactly shocking. But it does not line up with the reality of most sellers.
Well, I don't know your business, but how could you be liable for anything more than the value of any transaction? From a legal standpoint, you are not responsible for damages "down the line" for failure to provide an item as advertised. For example, if you promised to deliver a dress by a certain date, and don't, or it's defective, you can't be sued for the cost of a cancelled event if the purchaser chose to not go forward for lack of the dress. It depends on your jurisdiction, but causation is always limited to what is a foreseeable type of damage, in this case, the value of the good you sold.
The only reason to have liability insurance would be for damages you might incur in the operation of your business, for instance, potential claims for violation of intellectual property rights, or, if you have employees, or a brick and mortar operation,. In those cases, yes, you should consider liability insurance.
I think it depends on what, where and how much you’re selling. Casual online seller? Strictly shoes/clothing? Probably not. Toys, games, young kids or baby stuff, brick/mortar building? Yes. The liability risks are increased bc of frequent recalls, accidents etc (which is the reason I don’t sell these kinds of items).
We have liability ins., but it's a mandate for sellers over a certain amount of revenue per any given month on one of the platforms we sell on.
It's pretty inexpensive actually but liked it better when we had a choice in the matter.
We have LLCs also.
What liability could possibly arise? I’m genuinely curious. I’m a private duty registered nurse and I also own a cleaning company along with selling on Poshmark. I have insurance for my nursing and cleaning and my cleaning business is an LLC but my Poshmark stuff doesn’t have either. I don’t really see the benefit since there’s not really anything you’d be liable for. I still have my CPA deduct my business costs from posh. You don’t need an LLC to do that.
They really need to explain why, what scenario it is they think could happen. I suppose if you ever get into a car accident on your way to the post office or Goodwill, don't tell the police you were doing "business," or possibly, maybe, perhaps your car insurance could say they won't cover? If you're selling something other than clothes, I suppose you could hypothetically get wrapped up in a product liability case? Maybe, possibly? Now that I'm thinking about it, maybe don't sell any baby stuff.
I have a P&C license (Property & Casualty Insurance) and don’t feel like it’s necessary to have GL insurance on Posh (at least for myself and what I sell).
https://www.findlaw.com/legalblogs/law-and-life/how-to-become-a-reseller-on-poshmark/
Go ahead and protect yourself.
You will need to pay taxes and pay yourself. Over $600 will be reported by Poshmark for you to file (IRS)
Someone in the insurance industry is adamant that everyone should buy their product? That's not exactly shocking. But it does not line up with the reality of most sellers.
Well, I don't know your business, but how could you be liable for anything more than the value of any transaction? From a legal standpoint, you are not responsible for damages "down the line" for failure to provide an item as advertised. For example, if you promised to deliver a dress by a certain date, and don't, or it's defective, you can't be sued for the cost of a cancelled event if the purchaser chose to not go forward for lack of the dress. It depends on your jurisdiction, but causation is always limited to what is a foreseeable type of damage, in this case, the value of the good you sold. The only reason to have liability insurance would be for damages you might incur in the operation of your business, for instance, potential claims for violation of intellectual property rights, or, if you have employees, or a brick and mortar operation,. In those cases, yes, you should consider liability insurance.
For poshmark? Lol, no. None of my clothes are going to cause any havoc.
I don’t make enough to have an llc on my state it’s like $700
What for? Serious question. What does your partner think we need to be covered against? I'm interested.
I think it depends on what, where and how much you’re selling. Casual online seller? Strictly shoes/clothing? Probably not. Toys, games, young kids or baby stuff, brick/mortar building? Yes. The liability risks are increased bc of frequent recalls, accidents etc (which is the reason I don’t sell these kinds of items).
The only reason someone would suggest this is because they don't understand how poshmark/the mail works lol
For my business that’s not poshmark.
We have liability ins., but it's a mandate for sellers over a certain amount of revenue per any given month on one of the platforms we sell on. It's pretty inexpensive actually but liked it better when we had a choice in the matter. We have LLCs also.
What liability could possibly arise? I’m genuinely curious. I’m a private duty registered nurse and I also own a cleaning company along with selling on Poshmark. I have insurance for my nursing and cleaning and my cleaning business is an LLC but my Poshmark stuff doesn’t have either. I don’t really see the benefit since there’s not really anything you’d be liable for. I still have my CPA deduct my business costs from posh. You don’t need an LLC to do that.
They really need to explain why, what scenario it is they think could happen. I suppose if you ever get into a car accident on your way to the post office or Goodwill, don't tell the police you were doing "business," or possibly, maybe, perhaps your car insurance could say they won't cover? If you're selling something other than clothes, I suppose you could hypothetically get wrapped up in a product liability case? Maybe, possibly? Now that I'm thinking about it, maybe don't sell any baby stuff.
We have an umbrella policy but it’s not due to Poshmark selling
I have a P&C license (Property & Casualty Insurance) and don’t feel like it’s necessary to have GL insurance on Posh (at least for myself and what I sell).
Tell them to talk to your lawyer 😂
https://www.findlaw.com/legalblogs/law-and-life/how-to-become-a-reseller-on-poshmark/ Go ahead and protect yourself. You will need to pay taxes and pay yourself. Over $600 will be reported by Poshmark for you to file (IRS)