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Caroline Said:

Small Business Insurance Question.?

We Answered:

Sure, any local agent can do that. The PROBLEM is, the PRICING goes up through the roof, if you insist on cafeteria style coverages.

So. Do you want INEXPENSIVE coverage, that includes things that you don't need (btw, liability doesn't limit itself to people at your house, it typically includes product liability for the things you sell)? Or would you rather pay 2 - 4X as much, for a custom policy with not as much coverage on it?

Usually when people complain to me about extra coverages, what they're REALLY saying is, I want cheaper insurance.

When you go to a restaurant, if you don't eat the bread or use the butter pats or the sugar & sweet & low, or salt & pepper, it doesn't mean you're paying less for your meal. The package meal deal is still usually the cheapest. Same thing for packaged insurance products.

Lydia Said:

what should a small business pay for a $4,000,000 umbrella insurance policy?

We Answered:

First of all, it's going to be HIGHLY dependent on the type of business, and the underlying premiums.

Second, the first million costs at least $1,000, and each additional million is going to cost at least $750.

But the REAL quote, will depend on the type of business (lead paint abatement? nuclear energy facility designer? deep sea fishing? retail dress store?) and the underlying premiums.