NLIC.org

Lynn Said:

I would like to learn insurance?

We Answered:

Get your license right away. Go take the classes that your boss is going to pay for. They are pretty easy. Being that your company handles both P&C and Life, tell them that you want to get both licenses. This will make you more valuable. I think I did my studying through Dearborn, but there are several good companies to use.

Kristina Said:

The type of insurance that provides protection against a type of customer-oriented risk is...?

We Answered:

My answer would be C. Business Interruption Insurance.

Here is my reasoning:

If you are an agent selling a policy to your customer, the other 3 items are all coverages where claims would result in payments to other parties. A claim under business interruption coverage would trigger a payment to YOUR CUSTOMER for his loss of business income following a claim.

Frank Said:

Business Insurance for Contractual Reasons?

We Answered:

I'm not a property & casualty guy, so I have no idea of the cost; but I've been in the insurance industry for well over a decade. Why do you want the opinions of unqualified people before you speak to an expert? First, neither the insurance agent nor the company has any control over the premiums. All premiums are approved by the state's insurance commission and cannot be changed or altered except by subsequent approval by the commission; and profit margins are so razor-thin that if you're paying substantially less elsewhere, you're also getting less.

Business insurance is so complex that it cannot be comprehended by anyone but an expert, and the industry is unmatched by any other in terms of ethics and regulatory environment. Unless you're one to gather the unqualified opinions of total strangers prior to consulting your physician about your upcoming brain surgery, go talk to your agent.

Lena Said:

Insurance premium question for consulting firm startup?

We Answered:

Well, the big question is, what EXACTLY is management services? That's not a workers comp class code. And what's the EXPOSURE on the professional liability? What type of BUSINESS do you want to consult for, what are the EXACT services you're going to render, how many employees, what's the payroll and estimated sales?

AND, what's going to be required by contract? Are "co-owners" partners, or shareholders? Are they active, or passive?

Expect these to be MINIMUMS, and it will only go up based on your answers above: GL, starting at $1,000 as a new venture, based on payroll or sales. Workers Comp, minimum premium of $500, but could be as much as 25% of your payroll. Depending on the class, minimum could be MUCH higher. Professional liability - plan on $1500 per employee. It could vary from $500 to $5,000, depending on the EXACT nature of the services rendered, per employee. Health insurance will be individually rated - with three non-related people, that's not enough for a group in most states. So if you're 25 and healthy, $250 a month for just you.

Henry Said:

Does anyone have experience with PENN NATIONAL INSURANCE?

We Answered:

Penn National Insurance
(a member of Penn National Insurance)
A.M.Best #: 00766

Address: P.O. Box 2361
Harrisburg, PA 17105-2361
Phone: 717-234-4941
Fax: 717-255-6317
Web: www.PennNationalInsurance.com

This rating is assigned to companies that have, in our opinion, an excellent ability to meet their ongoing obligations to policyholders.
Best's Ratings

Financial Strength Ratings Rating: A- (Excellent)
Financial Size Category: IX ($250 Million to $500 Million)
Outlook: Stable
Action: Affirmed
Effective Date: June 15, 2007

A couple of things. A couple hundred is NOT much of a difference with CGL. Also, you need to not just shop the premium, but also the RATE, as most CGL policies are AUDITABLE, and you don't want to get nailed with a huge audit when your policy expires. Also, COVERAGE is kinda important, too. CGL policies are NOT cookie cutter - make sure the agent is comparing your current coverage to their proposed coverage, in a way that you can clearly understand.

Kay Said:

Minnesota Rules for house cleaning?

We Answered:

You should have insurance to provide for any damage that you might cause. The specific type of policy that you need is Commercial General Liability Insurance. If you are the only one working, i.e. you have no employees then you do not have to have Workers Compensation (provides for medical & lost wages for on the job injuries) and it would probably be a waste of money to purchase a bond (provides coverage for theft of property on the job by employees).

Some states require that you have a license and therefore automatically impose an insurance requirement. You should double check any licensing or insurance requirements directly with the state government in Minnesota. The web site for contacting the govt directly is ?http://www.mnsbao.com/contact.htm?

??Here in the Mid-Atlantic region the cost for Commercial General Liability coverage for $1,000,000 occurrence limit (as long as it is only a one person operation) is $839 with our best company with no deductible on claims and it can be paid monthly. I am sure you can find something similar in your area but you need to do your homework. Check with other business owners and get a couple of recommendations. Then call up the agents and get a quote. Make sure you have an estimate of your annual gross receipts when you call and how much coverage you want. In my opinion you should not get less than $500,000 and it is probably best to do $1,000,000.?

?You should purchase insurance. It will give you and your clients peace of mind and it is a good selling point if you want to get more clients later on.?

?Good Luck.