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Are you insured?

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Offline Meg

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Are you insured?
« on: July 08, 2014, 11:39:15 AM »
Can I ask whether any of the marketers on here are insured, eg public liability, professional indemnity, etc? It seems to me that mainstream businesses here in the UK do not understand or even know anything about internet marketing. I have been looking at insurance company web sites and they do not seem to have any cover suitable for internet marketing.

Professional indemnity would be insurance that covers someone if they are sued by a customer who feels they were misled or injured in some way by advice provided, for instance, maybe if someone followed diet advice and got ill. They would say that the marketer was a professional providing advice and if the advice were wrong, they might sue. Fair enough, you can disclaim liability on your web site and provide medical disclaimers and state that your product or offering is simply information, NOT advice but that doesn't always stop someone feeling aggrieved and trying to sue for everything you have (see the sleeping baseball fan suing for defamation after being seen on camera! https://uk.eurosport.yahoo.com/blogs/world-of-sport/fan-fell-asleep-during-match-suing-millions-111548904.html)

So is anyone prepared to share whether they are insured and if so what type of insurance? Or is it not necessary?
Thanks

Offline Meg

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Re: Are you insured?
« Reply #1 on: July 09, 2014, 06:42:16 AM »
I guess the answer is "no", then. I also asked about business banking and insurance on a money management forum and got a similar response (but this time in words  ;D) from those there. It appears that the banks (in the UK anyway) don't want to know about internet marketing or affiliate marketing, they don't understand it! I was asked "but who are you working for?" several times by the business banker and they didn't seem to understand the answer.  :o I had thought that my explanatory skills were reasonable  ::) so it must have been my accent.  ;D They also wanted me to put my business address (my home) and my telephone number on the web site! (Do they live in the real world?) And the insurance companies will cover Mary Kay and Kleeneze and similar party type businesses but not affiliate marketing. One respondent on the other forum explained that there is no quality organisation setting standards for reports on the internet, so insurers would not want to know. 

PAUSE - JUST GOT A PHONE CALL! I had emailed a firm whose policy (online) seemed to cover what I wanted (Professional Indemnity Insurance) but on reading through the policy, again, no. The firm called me just there now and I explained that I wanted to know whether, if I wrote a report, say on diets and gave or sold it to people, could I get insured against being sued if they felt they had been "injured" by following what was said (even if I have disclaimers, etc to warn them to make their own checks) and the answer is, "unlikely". The caller explained that the insurers would want to know what qualifications and experience I have for writing and producing this report and my answer, of course, has to be "none".

So, it looks like PayPal is still the best option. Away to open a PayPal business account now. At least that will give me records for business accounting. (At least, I hope so!)

Re: Are you insured?
« Reply #2 on: July 10, 2014, 07:39:39 PM »
Why is Paypal the best option? Do they offer some kind of protection about this?

Offline Meg

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Re: Are you insured?
« Reply #3 on: July 10, 2014, 10:52:08 PM »
Why is Paypal the best option? Do they offer some kind of protection about this?

No, not that I know of - they just offer an account I can open and keep separate from my personal account!  :)  They are also the banker of choice on the internet, as far as I can see and I was going to open a business account with them anyway, only, just AFTER opening a business bank account.  Mind you, I STILL have problems with that - I chose a business name - and now I can't add funds from my personal bank account directly - I have to send them as a "gift"!  :o Possibly some other banks would offer me a business account but having just wasted several hours of my time, only to get turned down,  >:( I would rather spend my time on something more productive that has a better chance of a return on my time.  8)

Offline snm

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Re: Are you insured?
« Reply #4 on: July 11, 2014, 12:04:11 PM »
I am sure laws in UK are very similar to ours in India. So I dare to suggest.

First of all, you can add to your Capital Account in the business - obviously from personal funds. So it need not be a "gift".

Secondly, a proprietorship, a partnership and a limited company - that's how things are, gradually more complex. Setting up a proprietorship is very simple. Exact formalities can vary. In our case, a suitable certification (usually from a Chartered Accountant) that you have set up a proprietorship with the business name M/s XYZ with office at the address mentioned is all that is required for a bank to open a business account for a proprietorship. There are other smaller requirements like a letterhead on which the request to the bank should be made plus a rubber stamp of the business etc.

Compliance requirements of various tax laws, shops and establishment laws like registrations, filing information returns etc will be another matter once the business gets going.

Meg, the banker wishes to be sure that it is a genuine business account and not a sham operation. So he needs some sort of comfort through a certificate or whatever. That's the gist.

In case this helps.

Regards
SNM

Offline Meg

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Re: Are you insured?
« Reply #5 on: July 11, 2014, 12:26:32 PM »
I am sure laws in UK are very similar to ours in India. So I dare to suggest.

First of all, you can add to your Capital Account in the business - obviously from personal funds. So it need not be a "gift".

Secondly, a proprietorship, a partnership and a limited company - that's how things are, gradually more complex. Setting up a proprietorship is very simple. Exact formalities can vary. In our case, a suitable certification (usually from a Chartered Accountant) that you have set up a proprietorship with the business name M/s XYZ with office at the address mentioned is all that is required for a bank to open a business account for a proprietorship. There are other smaller requirements like a letterhead on which the request to the bank should be made plus a rubber stamp of the business etc.

Compliance requirements of various tax laws, shops and establishment laws like registrations, filing information returns etc will be another matter once the business gets going.

Meg, the banker wishes to be sure that it is a genuine business account and not a sham operation. So he needs some sort of comfort through a certificate or whatever. That's the gist.

In case this helps.

Regards
SNM

Hi Shiv,
Yes, they need to know it's genuine. I was going to use a bank that I have banked with for about 15 years and who are very happy to offer me credit cards. I had already registered with the government and tax people and I did not need them to make me a loan or offer credit or an overdraft!
The "gift" was the only way I could "lend" myself money to use in paypal without having to pay a fee!

Offline Meg

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Re: Are you insured?
« Reply #6 on: July 11, 2014, 12:38:16 PM »
I am sure laws in UK are very similar to ours in India. So I dare to suggest.

First of all, you can add to your Capital Account in the business - obviously from personal funds. So it need not be a "gift".

Secondly, a proprietorship, a partnership and a limited company - that's how things are, gradually more complex. Setting up a proprietorship is very simple. Exact formalities can vary. In our case, a suitable certification (usually from a Chartered Accountant) that you have set up a proprietorship with the business name M/s XYZ with office at the address mentioned is all that is required for a bank to open a business account for a proprietorship. There are other smaller requirements like a letterhead on which the request to the bank should be made plus a rubber stamp of the business etc.

Compliance requirements of various tax laws, shops and establishment laws like registrations, filing information returns etc will be another matter once the business gets going.

Meg, the banker wishes to be sure that it is a genuine business account and not a sham operation. So he needs some sort of comfort through a certificate or whatever. That's the gist.

In case this helps.

Regards
SNM

Hi Shiv,
Yes, they need to know it's genuine. I was going to use a bank that I have banked with for about 15 years and who are very happy to offer me credit cards. I had already registered with the government and tax people and I did not need them to make me a loan or offer credit or an overdraft!
The "gift" was the only way I could "lend" myself money to use in paypal without having to pay a fee and yes, it is a capital loan. Paypal can't take fees from my bank account because it is not in my business name. I don't need accountant yet, not enough income. Lol


Offline snm

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Re: Are you insured?
« Reply #7 on: July 11, 2014, 01:11:59 PM »
Meg,

Okay, I missed the Paypal aspect of the gift thing.

As far as a business bank account is concerned the banker is right in being rigorous. There are all sorts of possibilities with money in the bank and no banker wants to be involved in any trouble.

They don't look at specific individuals but at the procedures applicable to one and all. That's why they are bankers - not a very exciting job.

An accountant is the first to be employed and the last to be sacked. Before you know, you will have one.

Regards
SNM