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Sole Proprietor versus Incorporated: Insurance Problems

Topic = Home Based Business Insurance. I want to share my experience in the hope that it will generate discussion. Note: I’ve never spoken with the Underwriters; only through the Brokers. I’ve recently been “Dumped” by the House Insurance Company that I’ve had for 24 years. This is because I informed them that I’m making Jewelry in my house and selling it. Reason = “The insured or applicant is engaged in business pursuit on premises.” Even though I also have Business Insurance. Eventually I was able to find, through a Broker, an Underwriter that would provide coverage for my House and my Business under the same policy. OR so I thought! So, when the new Underwriter found out that I was Building a Web-site to sell my work to the USA… the new insurer/underwriter … stated “they would have nothing to do with me”. I was dumb-founded !! So I said, “okay how about if I only sell within the Canadian Border?”. The underwriter agreed and would insure me again… OR… So I thought. At this point, the Underwriter found out that I sell, on Commission, through the Alberta Craft Council. The Alberta Craft Council sells my work “On-line” into the USA. Once again the Underwriter would have nothing to do with me! At this point I’m losing my mind! Why? Well, it is because I still have “Exposure” through the AB Craft Council… and the potential risk is that someone “Outside Canada” could sue me and my house. At this point I’m now learning about Business Types: Sole Proprietor vs Incorporated. Stay tuned and/or chime in with your experience.

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