Thoughts on my Insurance?

J

John_K

New member
Hey all,



It seems here in KY nobody wants to insure a small business that doesn't already have sales, or doesn't need a huge amount of coverage. I refuse to do business without being insured, as I don't want to risk something happening! So I think I am leaning to go with what my insurance company (USAA) is offering me.



They are giving me a policy at $1.3k/yr for:



$1 mil general aggregate

$500k each occurance

$500k personal / advertising injury

$5k medical expenses



and an assortment of other coverages.



Also they threw in a garage keeper policy (comprehensive and collision) that would insure cars up to $30,000 in value if I made a mistake on them. I don't expect to be doing Ferraris anytime soon so to me $30k seems reasonable. I may increase this to $60k if things start looking up though.



What are some other things I may need to be looking at to make sure my family is protected in case something sour happens?



This is really all that is left that I need to do before I can advertise.



Thanks for any and all advice.



John
 
Are you set up as an LLC?



That's pretty typical of an insurance company not wanting to insure a new business like that; I ran into the same issues when looking for insurance. $1300/yr sounds on the high side of average for a policy, but reasonable. I'm sure when you are in business longer then you can rework the pricing.
 
Sole Prop is what I'm setup as. I plan to go to a LLC when business goes full-time. I'll give Nationwide a call gmblack. Thanks for the comments!!
 
I've done it! After some talking with my insurance agent. i was able to get the same coverage for about $1,040/year. So I am able to get covered if a customer drops a car off at my house, if I drive their car, OR I go to their place.



I am very happy right now, as I can finally focus on growing my business. Thanks again for everyone's help! My business (part time for now) officially starts TOMORROW!!



John





These forums have been nothing but a great inspiration in my life. Now I hope I can do something I enjoy and make a few bucks!
 
that's what i'm paying, basically same coverage-actually it looks like you are getting a bit more coverages. I'm in Northern KY



Yes, you are right, if you have no experience, then you are a liability until your first year is up. Even your 2nd year. Good luck my friend!
 
I think my policy covers up to 50k if driving or in my possession along with 750k in liability. Mine runs ~$700 a year.
 
John K,



I would switch to an LLC as soon as possible. Being a sole proprietor lends yourself to being personally liable for anything that might happen. As an LLC, you could hide behind the corporate veil and also lends itself to tax benefits.



It is not worth waiting. It is very simple to do and costs very little to get incorporated.



Good luck
 
slp123 said:
John K,



I would switch to an LLC as soon as possible. Being a sole proprietor lends yourself to being personally liable for anything that might happen. As an LLC, you could hide behind the corporate veil and also lends itself to tax benefits.



It is not worth waiting. It is very simple to do and costs very little to get incorporated.



Good luck
Click to expand...



Could you elaborate and give some cliff notes on what the process/cost is?



Dave
 
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