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Archive for the ‘Business Insurance’ Category

I am going to start a home maintenance business. I am going to offer the following. Painting, deck staining, shrub trimming, mulching, drywall installation & repair, Pressure Washing. I am looking to see about how much Insurance would be for this. I am going to be the only person working in this business for now. Thanks

The pressure washing could be a deal killer. Or the shrub trimming, if you accidentally trim trees.

But for a one man painting operation, residential only, less than three stories, interior and exterior, you’re looking at about $1200 a year for $500,000 of coverage.

I’m looking to start a VERY small residential cleaning business. I would be the sole worker, just looking to make a little extra money. I’m not planning to hire any employees and I’m hoping for just maybe 2 or 3 houses a week. Do I need a business license as well as Property and Casualty Insurance for something this small? Can anybody offer any advice? Bonding, insuring and licensing can be costly and if I can put this off until my business grows, that would be excellent. ANY advice is extremely helpful

In terms of whether you need a business license that would be dependent on where your business will be located so I cannot give you information about that. In the principle jurisdiction where I am located most businesses need a specific license geared toward their business or if they don’t fall into any of those categories they are required to obtain a basic business license and to register with the department of taxation.

For insurance purposes the cost will range from $600 to $800 per year for a $500,000 occurrence/ $1,000,000 aggregate limit of Commercial General Liability and even though you are new in business can usually be set up in an installment plan by giving 25% down and then up to 8 payments — with a small fee or finance charge. In terms of the bond, a janitorial services bond for $5,000 with less than 5 employees will generally cost about $100 for the year. The bond protects the homeowner in case you or someone you employ were to steal something from their home — in your case it would be primarily a marketing tool to put prospective clients at ease. You might also want to consider letting your automobile insurance carrier know that you will be using the vehicle to transport yourself and your cleaning paraphenelia to these homes as failure to do so could result in a subsequent claim being denied. As long as you do not hire any employees and your auto carrier accepts the use of the vehicle, the CGL and the bond should be all you need from an insurance standpoint. The only exception would be if you invest a great deal in equipment or supplies and want to have those covered for theft and or other damages.

I suggest that you find a good local insurance agent that specializes in commercial insurance for further assistance. You can go to the website for the Independent Insurance Agents & Brokers of America to assist you in this search by entering your city or town, state and zip code only you will be able to pull up all local agents, see their websites and specialties and the companies they represent, and obtain their contact information so that you can speak with two or three and choose the one you feel most comfortable with. Note that your information will not be stored or used in any other matter except to conduct a search for an agent serving your community — the website is: http://www.iiaba.net/agentlocator/findagent.aspx.

**Ultimately it is your choice whether to go without insurance or bonding — however, note that if you decide against insurance and you end up with a claim you can subject yourself to ruined credit, loss of a client, loss of your reputation and still jeopardize your assets — home, bank account, future income, etc. No one is judgment proof even bankruptcy will not offer you full protection and can ruin your credit for years to come.

I hope this information helps. Good Luck on your new business.

What kind of business Insurance is needed for a daycare?
I asked to find out if anyone could tell me something that they wouldn’t. Thanks to all whom have answered.

You can purchase a commercial package policy which will provide coverage to protect your business personal property, betterments and improvements, loss of income, and commercial general liability. If the daycare plans on purchasing an automobile, you will need a commercial automobile policy. If it will not own an auto, then you will need to add hired and non-owned auto coverage to the commercial package policy so that the daycare will be protected against any liability claims arising from an accident if an employee uses their personal auto to run errands for the daycare. You will also need to include coverage for claims of sexual abuse and molestation but this can also be added by endorsement to a commercial package policy.

In addition you will need a Workers Compensation Policy if you have employees. You should also consider and depending on your lease and state regulations might need to purchase a Commercial Umbrella or Excess Policy.

You should contact a local independent agent who specializes in commercial insurance to assist you reviewing your business and its exposures, in reviewing the state regulations for the size of your daycare (requirements for insurance will sometimes vary by the number of children the daycare will be licensed for) and reviewing your lease for the insurance requirements. You can find a local agent by entering only your town or city, state and zip code on the following website: http://www.iiaba.net/agentlocator/findagent.aspx. This website belongs to the Independent Insurance Agents of America–they will not keep your information or use it in any way. You will be able to pull up all the agents in your community, check out their websites, see what companies they represent (most independent agents represent multiple companies) and choose an agent that is right for you and your business.

I hope this information helps. Good Luck