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Stephen Said:

Business Insurance - Beverage E-tailer coverage requirements?

We Answered:

Product liability starts at $2500. The recommended amount, is going to depend heavily on the specifics of your product.

Liability insurance isn't required by LAW, it's just the other businesses you want to deal with - trade show, festival sponsors, etc, that will require you to have it, to participate in THEIR venue.

Laurie Said:

What insurance company is the best for home based business coverage and bonding?

We Answered:

State Farm offers very good and affordable business coverage. Be sure to sit down with your agent and go over the coverage offered and know what is and is not covered.

Lori Said:

Insurance Question - Business Liability Coverage?

We Answered:

Depending on whether you have experience in your profession and/or management/supervisory with a "standard" insurance company you should be able to obtain a $1,000,000 commercial general liability policy which will allow you to do landscape gardening which includes lawn care, planting, limited tree trimming, etc. for a premium of $500 to $800. If you do not have experience in management or supervision of a work crew, then you will probably have to start with a non-standard program (which includes some coverage limitations). I checked the rates with Tapco Underwriters who write in Florida under a non-standard program for a one man operation the annual premium is $902.70 for a one person company for a limit of $1,000,000. You can call Tapco at 1(800) 41-TAPCO and they will be able to refer you to an independent agent who can either write your insurance through them or who might have another program.

I do suggest you get several quotes. Make sure that you go over the description of what operations you will be doing so that the correct policy is written for you, i.e. some policies contain a classification limitation which means that their landscape gardening might not include incidental tree trimming (this is just one example) and if you subsequently have a claim involving tree trimming they will not cover it or if you start installing fences and have a claim involving the installation of the fence they will not cover it (another example).

Because of this I do not recommend that you try to purchase this type of policy online. You would do best with an independent agent that will take the time to go over the coverages, limitations, etc.

Good Luck on your new business!

Eduardo Said:

I want to start a small housecleaning business. What kind of license and insurance coverage would I need?

We Answered:

There are many housekeepers that work by themselves - no insurance and no taxes paid. If this person was injured in my home, then my homeowners insurance would cover it. I would find this person via a recommendation from friends. Now - the IRS really wants me to pay social security on this person. And my state really wants me to pay disability insurance on the wages. This gets cumbersome for me so I might just opt to find a cleaning service in the phone book and have them come give me a quote.
Your city probably has an web site that will detail the licensing regulations - or you could call city hall for the information. Call an insurance agent and check on liability insurance and bonding. You will also need workers compensation insurance (either through your state or the same insurance agent). Check the state web site for their business license - tax numbers etc. Each state has their own regulations. You could contact an accountant or accounting service that would charge to set you up and keep you out of trouble. You will need to do a little fact finding too. Call a few cleaning services and get quotes to clean your home so you know what you are competing against. Your biggest hurdle is finding customers. About once a month some new cleaning service leaves a flier in my door. I may hire/try a lawn service this way, but not someone who will be in my personal space.
Is there a need for this in your area? Are the franchised or established cleaning services increasing business or firing people?

Joseph Said:

What insurance coverage is needed to take out a loan when starting a business?

We Answered:

Many times the bank might want to see a buy/sell agreement in place that would be supported by life insurance.

Salvador Said:

what kind of insurance do you need for a business?

We Answered:

He's going to need at least three types of coverage. 1. General liability, for the operations and office premises 2. Commercial auto, with PUC filings as he's transporting for others for a fee, and 3. Inland marine or motor truck cargo policy, possibly wiht a PUC filing, as he's got the property of other's in his care, custody & control.

Bonds don't mean what people generally think they mean.

A competant, independent insurance agent should be able to line him up with the correct coverage. But keep in mind, it's not cheap, especially if he goes over state lines. Expect to pay about $5,000 per year, if there is ONE delivery vehicle.