Entrepreneurship & Small Business

Ask me anything about Business or Commercial Insurance!

[OP]
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Jan 8, 2009
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Ask me anything about Business or Commercial Insurance!

Most businesses don't think about getting insurance or don't know what type of insurance they should get.

A brief overview:

Liability Insurance - Every business should have a Liability policy! Protects you in the event you get sued.

Property coverage - Including your stock, equipment, building, boiler & machinery, etc.

Commercial Auto - Vehicles used for business

Special coverages, such as Errors & Emissions, product liability, completed operations, etc.

Surety or Bonds.
Insurance & Financial Advisor

All posts on this forum are for information purpose only and can't replace your policy contract. Please contact your own broker, agent or company before acting on my suggestions. There is more to insurance than just price!
144 replies
Deal Addict
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Mar 23, 2008
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When a company asks to be an additional insured, what does that exactly mean? I always thought that company will have their own policy to protect them in the event of a claim. Does that mean they want to piggy back off of mine?

How much does it normally cost to get a surery bond of $10k? Also for a bond certificate of say 10 employees for 5k each.

For auto insurance for business use, is this type of insurance the same if I get insurance from my automotive policy for business use?
[OP]
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Jan 8, 2009
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Usually a company would ask to be listed as additional named insured on your liability policy. This is done to protect them as well in case they get sued because of your work. e.g a business may ask a contractor to list them as additional named insured.

They have almost the same right as you and can call an insurance company to confirm coverages, initiate a claim and get a copy of registered letter, in case the policy is cancelled.

For bonds, the cost will vary based on the type of bond you require and your financial/business history. A performance bond can range around $7-$12/thousand. A bid bond is much cheaper than that. There is also an annual fee for setting up a bonding facility.

Commercial auto insurance is not the same as business insurance. Business use covered by personal automobile insurance companies is very limited and usually restricted to occupations such as, Realtor, accountant, consultant, etc. What type of business are you in?
Insurance & Financial Advisor

All posts on this forum are for information purpose only and can't replace your policy contract. Please contact your own broker, agent or company before acting on my suggestions. There is more to insurance than just price!
Deal Addict
Oct 7, 2007
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What would be the minimum annual premium that an independent IT contractor/consultant would need to pay to have his/her incorporated company insured for liability and errors and omission? I realize that this is a somewhat open-ended question but when shopping around for insurance I noticed that there is a wide range of minimum premiums and was wondering if you could shed some light or provide additional information in this area. Thanks!
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Nov 23, 2006
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Calgary
choclover wrote:
May 16th, 2012 10:21 am
What would be the minimum annual premium that an independent IT contractor/consultant would need to pay to have his/her incorporated company insured for liability and errors and omission? I realize that this is a somewhat open-ended question but when shopping around for insurance I noticed that there is a wide range of minimum premiums and was wondering if you could shed some light or provide additional information in this area. Thanks!

Hard to say, every company is different in regards to minimum premium for a specific operation.
Alberta Auto, Home, Business and Travel Insurance Broker
[OP]
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Jan 8, 2009
795 posts
63 upvotes
GTA
choclover wrote:
May 16th, 2012 10:21 am
What would be the minimum annual premium that an independent IT contractor/consultant would need to pay to have his/her incorporated company insured for liability and errors and omission? I realize that this is a somewhat open-ended question but when shopping around for insurance I noticed that there is a wide range of minimum premiums and was wondering if you could shed some light or provide additional information in this area. Thanks!

Minimum premium on liability policy is usually around $750/year.

E&O would depend on factors such as revenue, years in business, any USA sales, etc.
Insurance & Financial Advisor

All posts on this forum are for information purpose only and can't replace your policy contract. Please contact your own broker, agent or company before acting on my suggestions. There is more to insurance than just price!
Deal Addict
Oct 7, 2007
2783 posts
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Insurance-Broker wrote:
May 16th, 2012 11:09 pm
Minimum premium on liability policy is usually around $750/year.

E&O would depend on factors such as revenue, years in business, any USA sales, etc.

Thanks for your response on this. Not sure if there are rules on the RFD board against this but can you tell me which insurance company(s) offer this type of liability policy? I would love to research this further. Thank you.
Deal Addict
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Mar 23, 2008
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Do yoy know if a seperate policy is needed if I have two companies under the same corporation? Both different service contractors
Deal Addict
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Nov 23, 2006
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choclover wrote:
May 17th, 2012 1:51 am
Thanks for your response on this. Not sure if there are rules on the RFD board against this but can you tell me which insurance company(s) offer this type of liability policy? I would love to research this further. Thank you.


You can try this - but you will need to find a broker to help you obtain the insurance.

http://www.insurancewest.ca/marketfinder.php
Alberta Auto, Home, Business and Travel Insurance Broker
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NEMESIS_2008 wrote:
May 17th, 2012 2:03 am
Do yoy know if a seperate policy is needed if I have two companies under the same corporation? Both different service contractors

Your broker should be able to help you out on this.

IF both companies are under the same corporate legal name, you can have 1 policy but the insurance company will based the insurance on all of the operations.
It might be better to do seperate policy but best to talk to your broker since I don't know your situation.
Alberta Auto, Home, Business and Travel Insurance Broker
[OP]
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Jan 8, 2009
795 posts
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NEMESIS_2008 wrote:
May 17th, 2012 2:03 am
Do yoy know if a seperate policy is needed if I have two companies under the same corporation? Both different service contractors

It can be done both ways! Need to go over pros and cons.
Insurance & Financial Advisor

All posts on this forum are for information purpose only and can't replace your policy contract. Please contact your own broker, agent or company before acting on my suggestions. There is more to insurance than just price!
[OP]
Sr. Member
User avatar
Jan 8, 2009
795 posts
63 upvotes
GTA
choclover wrote:
May 17th, 2012 1:51 am
Thanks for your response on this. Not sure if there are rules on the RFD board against this but can you tell me which insurance company(s) offer this type of liability policy? I would love to research this further. Thank you.

For commercial policies, you are best served by using a broker. Please look for one in your area or ask someone for a referral.
Insurance & Financial Advisor

All posts on this forum are for information purpose only and can't replace your policy contract. Please contact your own broker, agent or company before acting on my suggestions. There is more to insurance than just price!
Deal Fanatic
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Dec 19, 2005
6628 posts
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Waterloo
Commercial Auto
2007 dodge sprinter ex
driving record 3 years

i been getting quotes for 3000????

Is it really that more expensive for commercial i run my own cleaning business
[OP]
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Jan 8, 2009
795 posts
63 upvotes
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sassysue wrote:
Jun 26th, 2012 9:33 pm
Commercial Auto
2007 dodge sprinter ex
driving record 3 years

i been getting quotes for 3000????

Is it really that more expensive for commercial i run my own cleaning business
It depends on your record, location, etc. I can check for you if you send me your details.

Thanks
Insurance & Financial Advisor

All posts on this forum are for information purpose only and can't replace your policy contract. Please contact your own broker, agent or company before acting on my suggestions. There is more to insurance than just price!
Jr. Member
Aug 20, 2009
132 posts
20 upvotes
0
what's the typical commission range a broker receive? how much cheaper would insurance be if the customer went directly to who the broker was trying to suggest (e.g. negotiating power of no finders fee vs. broker commission)?

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