Entrepreneurship & Small Business

Ask me anything about Business or Commercial Insurance!

Deal Fanatic
Sep 21, 2004
7663 posts
416 upvotes
I'm looking at setting up a consulting business for engineering consulting services. This is only for a side business by either myself and maybe my wife. income would be predicted at less than $20ka year and vehicle usage for business would be 10%. Only assets would be the car and anything else in the home office.

What kind of rates would I be expecting for business liability and business car travel?

Since the anticipated income is so low, it would seem crazy to pay a large percentage of income for insurance. Eg. I'd rather not claim the vehicle for business usage, etc.

Tia.
[OP]
Sr. Member
User avatar
Jan 8, 2009
790 posts
63 upvotes
GTA
Stock R wrote:
Apr 14th, 2015 2:08 pm
I'm looking at setting up a consulting business for engineering consulting services. This is only for a side business by either myself and maybe my wife. income would be predicted at less than $20ka year and vehicle usage for business would be 10%. Only assets would be the car and anything else in the home office.

What kind of rates would I be expecting for business liability and business car travel?

Since the anticipated income is so low, it would seem crazy to pay a large percentage of income for insurance. Eg. I'd rather not claim the vehicle for business usage, etc.

Tia.
Business liability insurance should be about $1000-$1500/year. Auto quote would depend on your details.
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
790 posts
63 upvotes
GTA
Drthorne wrote:
Apr 13th, 2015 9:34 pm
Electrical contractor that is planning on getting licensed with the Ontario Electrical Safety Authority (ESA), $2mil liability required by the ESA, one employee, mostly residential work at other peoples houses, maybe some commercial. one late model company/personnel truck, $20,000 in tools, will use my house garage as an office/ storage area/ business address, don't need a shop. Annual insurance estimate?
Liability quote would be about $1500.

Auto quote will depend on your details.
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
2576 posts
443 upvotes
I didn't see your thread before posting my question as a separate thread. I would appreciate your comments on the following situation:

Someone I know is really struggling right now because their insurance underwriter is not covering a claim that in all reality should be covered.

Here are some questions that have come up as a result of this:

1. Now the "insured" is faced with having to get insurance in place because they feel that their current insurance is not doing what it was supposed to. How can one check out the reputation and honourability of various commercial insurance carriers to know whether they are on the shady side or are honourable? Are their statistics available to know what percentage of liability claims are denied by any given underwriter?

2. If you had to estimate, how many cases of denied commercial claims did you hear about from your customers in the last year and what percentage of them were denied?

3. What advice would you give a client of yours faced with such a situation if your client can prove that the claim is being improperly denied.

Any advice you have would be most appreciated. Thank you in advance for your sharing your expertise and knowledge.
Deal Addict
Oct 7, 2007
2576 posts
443 upvotes
choclover wrote:
Apr 18th, 2015 9:55 am
I didn't see your thread before posting my question as a separate thread. I would appreciate your comments on the following situation:

Someone I know is really struggling right now because their insurance underwriter is not covering a claim that in all reality should be covered.

Here are some questions that have come up as a result of this:

1. Now the "insured" is faced with having to get insurance in place because they feel that their current insurance is not doing what it was supposed to. How can one check out the reputation and honourability of various commercial insurance carriers to know whether they are on the shady side or are honourable? Are their statistics available to know what percentage of liability claims are denied by any given underwriter?

2. If you had to estimate, how many cases of denied commercial claims did you hear about from your customers in the last year and what percentage of them were denied?

3. What advice would you give a client of yours faced with such a situation if your client can prove that the claim is being improperly denied.

Any advice you have would be most appreciated. Thank you in advance for your sharing your expertise and knowledge.
bump
Sr. Member
Sep 11, 2006
750 posts
83 upvotes
Thanks op and contributors for this thread and let me bump it up for you. I have family looking to get into their own businesses. How much would insurance be ROUGHLY more or less for the following start up companies:
Plumber
Electrician
Both are for startup residential service work. Both need $2,000,000 liability. Both have had no insurance claims in over 5 years and both have very clean drivers records if it makes a difference. Both are located in Bradford Ontario and their business's will be operating out of a their own home and out of a service vehicle to start.
I understand that there are many factors in determining prices but I would just like a ballpark figure.

Secondly, how would you suggest shopping around for insurance and which insurance brands are the best for start up tradesmen looking to save on commercial insurance as much as possible to keep startup costs at a minimum?

Lastly, one of these family members have group insurance with Td meloche monnex and they are receiving a great home/auto insurance rate. Do you know if Td meloche monnex also offers commercial insurance? I believe Td meloche monnex main insurer is Primum insurance company? I'm not sure though.
Member
May 2, 2010
239 posts
52 upvotes
Another question... If you purchase a commercial building with several tenants, what kind of insurance do you as the building owner need? Tenants have their own separate insurance I assume? I will have to satisfy the bank/lender too I imagine. If I can get access to the former building owner's policy, can you let me know it's pros/cons and see if you can find a comparable rate?
[OP]
Sr. Member
User avatar
Jan 8, 2009
790 posts
63 upvotes
GTA
DIrty-D wrote:
Jan 9th, 2016 4:00 pm
Thanks op and contributors for this thread and let me bump it up for you. I have family looking to get into their own businesses. How much would insurance be ROUGHLY more or less for the following start up companies:
Plumber
Electrician
Both are for startup residential service work. Both need $2,000,000 liability. Both have had no insurance claims in over 5 years and both have very clean drivers records if it makes a difference. Both are located in Bradford Ontario and their business's will be operating out of a their own home and out of a service vehicle to start.
I understand that there are many factors in determining prices but I would just like a ballpark figure.

Secondly, how would you suggest shopping around for insurance and which insurance brands are the best for start up tradesmen looking to save on commercial insurance as much as possible to keep startup costs at a minimum?

Lastly, one of these family members have group insurance with Td meloche monnex and they are receiving a great home/auto insurance rate. Do you know if Td meloche monnex also offers commercial insurance? I believe Td meloche monnex main insurer is Primum insurance company? I'm not sure though.
Business liability and business auto will be two different coverage. I'm not sure if you are asking about both or just auto?

Basic liability coverage will usually be around $1000-$1250 a year. You can cover some tools for another $250 or so.

Business auto will depend on your driving record. You can send me your details for a quote.

I don't think TD offers any commercial 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!
[OP]
Sr. Member
User avatar
Jan 8, 2009
790 posts
63 upvotes
GTA
hotski7 wrote:
Jan 9th, 2016 9:57 pm
Another question... If you purchase a commercial building with several tenants, what kind of insurance do you as the building owner need? Tenants have their own separate insurance I assume? I will have to satisfy the bank/lender too I imagine. If I can get access to the former building owner's policy, can you let me know it's pros/cons and see if you can find a comparable rate?
What type of building is this? Residential or commercial? Free-hold or condo?

You would need at least liability coverage as an owner.
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
May 2, 2010
239 posts
52 upvotes
Insurance-Broker wrote:
Jan 10th, 2016 8:02 pm
What type of building is this? Residential or commercial? Free-hold or condo?

You would need at least liability coverage as an owner.
Some of this is in my post, but to be more clear it is a 2-story, freestanding 100% commercial building. Liability of course, but I need coverage for the cost of the building in case of fire and so forth, right?
Jr. Member
Jan 10, 2016
108 posts
66 upvotes
Newmarket
Hi, I just found this thread on the Internet and have a question. I am going to be distributing a sporting goods product that throughout the US and Canada sold by my Canadian company. Do I need product liability insurance for either country? I don't manufacture or design it but merely buy it from the manufacturer who has it made in China. I import it from China and resell it both on my website and to other retailers who then resell it. Thanks so much in advance!
[OP]
Sr. Member
User avatar
Jan 8, 2009
790 posts
63 upvotes
GTA
hotski7 wrote:
Jan 11th, 2016 9:45 am
Some of this is in my post, but to be more clear it is a 2-story, freestanding 100% commercial building. Liability of course, but I need coverage for the cost of the building in case of fire and so forth, right?
Of course you would need to cover your property/building. Send me the details and I will provide a quote.
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
790 posts
63 upvotes
GTA
JKrioo wrote:
Jan 11th, 2016 3:56 pm
Hi, I just found this thread on the Internet and have a question. I am going to be distributing a sporting goods product that throughout the US and Canada sold by my Canadian company. Do I need product liability insurance for either country? I don't manufacture or design it but merely buy it from the manufacturer who has it made in China. I import it from China and resell it both on my website and to other retailers who then resell it. Thanks so much in advance!
Yes, you would need liability coverage and property/stock. Send me your details for a quote.
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
Oct 23, 2015
2 posts
Kanata, ON
I am looking onto starting up my own business (very preliminary stages; first time as well so I am learning as I go) and have a few questions regarding needed insurance. The business involves selling a consumer good direct to the public in the GTA via online channels. A local manufacturer will be making the product for me, but I will likely have to warehouse it (5000 sq. ft should be sufficient to start) and deliver it to customer's homes. The delivery of the product will require a 20ft box truck and I am wondering what kind of ballpark pricing commercial vehicle insurance will run (I have a clean driver's abstract, 43 yrs. old been driving since I was 16). What other kinds of insurance should I be considering? There will only be two employees to start, myself and my partner. I am just looking for ballpark figures at the moment to help with financial side of the business plan.
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