Entrepreneurship & Small Business

Ask me anything about Business or Commercial Insurance!

Member
Feb 15, 2018
449 posts
558 upvotes
Edmonton
Is there any downside to being named as an additional insured on the insurance policy of a contractor or it is actually a good business practice.
Edmonton area Realtor
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Jan 8, 2009
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lilmikey wrote: What would this coverage actually cover? someone falling in the home ?? confused as to why to pay that much and for what in all honesty
Well do you plan to do this on a regular basis? If part-time, you can talk to your home insurance company and see if they will allow some business from home. Best protection only comes with a proper commercial liability policy. Think about someone falling or getting hurt on your property. Injury while performing and or house damage due to business in home.
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!
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Jan 8, 2009
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I RFD wrote: Sorry I don't follow since I'm not familiar with the insurance product used by parcel shipment companies. Perhaps I should be more clear, does the car rental company pay for an insurance product which provides full insurance coverage for every single renter that rents their car everytime the car is rented, regardless if the the renter opts in or out of buying daily car insurance in their rental agreement , or does the car rental company pay for an insurance product which only provides coverage to the renter based on/ contingent on whether the renter opts in or out of buying daily car insurance in their rental agreement ? I am asking as I'd like to know what type of insurance products are available to the owner of a car rental company. I am only aware of the former, which is very expensive. If the latter option did exist, I would suspect it would be cheaper. Thanks in advance.
They are simply selling coverage to avoid claiming damages from renter's insurance policy. Rental company has coverage for their own vehicles and deductible may vary.
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
Nov 14, 2006
3148 posts
1952 upvotes
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Insurance-Broker wrote: Well do you plan to do this on a regular basis? If part-time, you can talk to your home insurance company and see if they will allow some business from home. Best protection only comes with a proper commercial liability policy. Think about someone falling or getting hurt on your property. Injury while performing and or house damage due to business in home.
Just seems like a lot you quoted above for my wife to have 1 chair and do clients from the home (hairdresser). I would want her to be busy as possible but starting out any business is full-time job regardless of little income if any. Hard to answer insurance companies questions as everything is 0 income 0 clients .......
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canuckstorm wrote: Is there any downside to being named as an additional insured on the insurance policy of a contractor or it is actually a good business practice.
Not really, as I assume you are covering yourself from the actions of the contractor
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!
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Jan 8, 2009
830 posts
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lilmikey wrote: Just seems like a lot you quoted above for my wife to have 1 chair and do clients from the home (hairdresser). I would want her to be busy as possible but starting out any business is full-time job regardless of little income if any. Hard to answer insurance companies questions as everything is 0 income 0 clients .......
You have to estimate income for the first year.
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!
Newbie
May 29, 2019
30 posts
5 upvotes
slightly off topic. I would like to become a part-time insurance agent.
What would be a good brokerage to start with? I dont want to spend money on desk fees, etc.
It would be good if the brokerage allows access to most insurance companies.
Can anyone guide me please how to go about it please.

I was looking into WFG (my brother in law works with them). Is it any good? However, I have read lot of negative things about them. The only good part regarding WFG is that I know someone who can guide me through it.
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Nov 13, 2016
424 posts
462 upvotes
Montreal
Insurance-Broker wrote: You have to estimate income for the first year.

Thanks OP for an informative thread. I am just starting a consulting / product development incorporated business with clients in the US. It's small scale and expected revenue for the first year will be only 50K (max). What should be the minimum liability insurance needed?

Also, is O&E really needed? If yes, how much will be a rough ballpark.

Based in QC
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Newbie
Nov 28, 2019
1 posts
Can you confirm the following:

I've reached out to two commercial insurance brokers regarding a quote for general business insurance (Liability and Errors and Omissions) for a company I am in the process of forming. This company will sell, install and service equipment provided by a Chinese manufacturer. First year sales I hope will be in the $500k range. I hope to have 3 employees.

First broker did not call be back. Second broker asked if any other brokers had been contacted and when I asked him why he said when multiple brokers are placing requests for quotes to insurance companies, the insurance company will respond back only to the first request received and will not reply to later requests from other brokers. So I have not followed up with another broker at this time.
The second brokers has told me most companies are not interested and not responding. He's telling me the premiums will be in the $25,000 /yr range. And it's been a week and a half and still not one quote.

Can you confirm that a) the commercial insurance business is just not that hungry for business? and b) does $25,000/yr for a start-up small business sound about right?

Thanks
Newbie
Jan 7, 2019
2 posts
Insurance-Broker wrote: 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.
I have stumbled into a small hobby business recovering in demand parts from scrapped Vehicles, electronics, and appliances. What I don't piece together for myself, I am selling to DIYers in the US and Canada. Mainly sales are through Kijiji, FB Market Place, and Ebay. I am running out of storage space and would like to rent a small workshop or share space with another business. What kind of Insurance should I consider obtaining? I guess my main concern is jeopardizing my personal assets in the case of a law suit all because of my little recycling hobby (under 20k a year in sales)... Any assistance is greatly appreciated! JT
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Jan 8, 2009
830 posts
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jtsgaragesale wrote: I have stumbled into a small hobby business recovering in demand parts from scrapped Vehicles, electronics, and appliances. What I don't piece together for myself, I am selling to DIYers in the US and Canada. Mainly sales are through Kijiji, FB Market Place, and Ebay. I am running out of storage space and would like to rent a small workshop or share space with another business. What kind of Insurance should I consider obtaining? I guess my main concern is jeopardizing my personal assets in the case of a law suit all because of my little recycling hobby (under 20k a year in sales)... Any assistance is greatly appreciated! JT
I am not sure what you do. May be start with incorporating your business and than get liability insurance.
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!
Sr. Member
User avatar
Jan 8, 2009
830 posts
66 upvotes
GTA
RudyH52385 wrote: Can you confirm the following:

I've reached out to two commercial insurance brokers regarding a quote for general business insurance (Liability and Errors and Omissions) for a company I am in the process of forming. This company will sell, install and service equipment provided by a Chinese manufacturer. First year sales I hope will be in the $500k range. I hope to have 3 employees.

First broker did not call be back. Second broker asked if any other brokers had been contacted and when I asked him why he said when multiple brokers are placing requests for quotes to insurance companies, the insurance company will respond back only to the first request received and will not reply to later requests from other brokers. So I have not followed up with another broker at this time.
The second brokers has told me most companies are not interested and not responding. He's telling me the premiums will be in the $25,000 /yr range. And it's been a week and a half and still not one quote.

Can you confirm that a) the commercial insurance business is just not that hungry for business? and b) does $25,000/yr for a start-up small business sound about right?

Thanks
Commercial business is getting hard these days so no surprise. Insurance premiums can vary depending on the appetite.
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!
Member
Nov 20, 2010
301 posts
209 upvotes
Halifax
I have an online side-business where I sell clothing. In order to set up a table at various venues, I am required to have insurance. My questions are:
1: Should I have insurance for an online clothing business? My home insurance company is aware that I run a home-based business - the only thing I have here is clothing that I ship out, no customers come to my residence;
(registered business name, going for Fed Inc shortly (lower cost, better protection of trademark (I have one registered, two going through the process for my products)
2: If yes, what type of insurance should I be looking at?
3: Can you make a recommendation to insurance where I set up a table at trade-shows and the like
Thanks in advance!
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Jan 8, 2009
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Tutter wrote: I have an online side-business where I sell clothing. In order to set up a table at various venues, I am required to have insurance. My questions are:
1: Should I have insurance for an online clothing business? My home insurance company is aware that I run a home-based business - the only thing I have here is clothing that I ship out, no customers come to my residence;
(registered business name, going for Fed Inc shortly (lower cost, better protection of trademark (I have one registered, two going through the process for my products)
2: If yes, what type of insurance should I be looking at?
3: Can you make a recommendation to insurance where I set up a table at trade-shows and the like
Thanks in advance!
You can get insurance for your business separately and include those trade shows.

Trade shows also offer insurance for their event.
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
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Mar 28, 2004
1845 posts
783 upvotes
Vaughan
I started a small business where I manufacturer products and sell to consumers from a website. My main concern is product liability insurance. Can I just get this? any ideas what this costs per year?
Deal Addict
Jan 10, 2007
1748 posts
726 upvotes
Abbotsford
Insurance-Broker wrote: 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.
do you work in BC? I'm having a tough time finding reasonable rates for a start up company. CGL is half decent but E&O through the roof
Deal Fanatic
Dec 12, 2009
6134 posts
3607 upvotes
Toronto
Insurance-Broker wrote: You have to estimate income for the first year.
Why has income become so important lately?
I've been getting insurance through a group plan for many years with no questions about income. The group changed brokers and insurance policies & the question about income popped up.
What income are they looking for - gross or net?
Is there any consideration on how the business is run? 2 people with the same gross revenues can have vastly different expenses depending on how much work is subcontracted out to others that have their own insurance. Essentially double insuring the subcontracted work.
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Jan 8, 2009
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wheelz wrote: I started a small business where I manufacturer products and sell to consumers from a website. My main concern is product liability insurance. Can I just get this? any ideas what this costs per year?
It would depend a bit on the product that you are producing/selling. Also annual revenues, etc. A basic startup policy can be as low as $1,500 a year.
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!
Sr. Member
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Jan 8, 2009
830 posts
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oakjefferson wrote: do you work in BC? I'm having a tough time finding reasonable rates for a start up company. CGL is half decent but E&O through the roof
No sorry. E&O rates have increased a lot as with most other commercial business.
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!

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