liability insurance for a small business

[GFNER]

Started my own small business building and installing cabinets and countertops and am in need of liability insurance, was just wondering where others are getting their insurance and what prices I should be expecting to pay? Thanks!

[Wish-I-Were-Fishn]

Find an Acuity agent. I have been very please with them. My guy doesn't cover your area so you will have to find else who does.

As far as rates go, your business is way different then mine, so I have no clue. I can tell that Acuity has great rates for manufacturing companies though.

[not_nuf_time]

I use Acuity also, theres one in Big Lake.

[not_nuf_time]

They will likely take numbers and charge you accordingly to a pectentage of gross revenues(for laibility), for work comp obviously pect. of payroll (Roughly 8-10)pct. I think on work comp.

[LightningBG]

I use Federated (based in Owatonna).

They do specifically work with Cabinet & Custom Woodworking Shops.

Their price was good for my business, but we have very special insurance needs. Not sure how they are generally, but worth a quote.

[PurpleFloyd]

Started my own small business building and installing cabinets and countertops and am in need of liability insurance, was just wondering where others are getting their insurance and what prices I should be expecting to pay? Thanks!

I have had my own cabinetry business for about 15 years now and I have used a few different companies. I would recommend looking at Auto Owners Insurance. They have decent rates and for me, they were really there when I had a claim(fire).

As far a cost- What specifically are you looking for coverage on? If it is just liability in case of loss such as if you wreck something that isn't all that expensive.Depending on the type of homes you plan on working in and the contractors you may be retained by you need to insure your business for a higher amount than the biggest house you work in. We get into houses values in the millions at times so I keep my liability at a fairly high rate, like 3 Million.

But you should really have a blanket policy- generally referred to as inland marine- that will cover everything related to your business. You need to have coverage for every tool and piece of equipment you own, every hinge, drawer slide, sheet of plywood and stick of lumber. You also want to have insurance for 1.5x the maximum amount of cabinets you could ever have in your shop at one time because at some point a big job will come along and you will have more product in there than you can imagine today and when that happens you never think of calling your agent and bumping it up.

Find a good agent, be honest with them about everything you do or may do and make sure they have it in the policy. Nothing is worse than paying a monthly premium and then having a claim only to find out you aren't covered due to an oversight.

BTW- An old cabinetmaker once told me the key to making a small fortune in the cabinetry business that I will share with you- You first need to start with a large fortune......

[GFNER]

Thanks PurpleFloyd, I was hoping you would reply as I have seen your posts and knew you were in the business. The whole "fortune" thing couldn't be truer. Thanks!

[leechlake]

PF-

that's my line. I own a Hardwood Lumber company. I think all our customers make all the money? That isn't true?

[Down Deep]

I've been in the retail business for many years and can tell you from experience to get an all lines commercial local agency to advise you, search for and place your insurance. There are many pitfalls to using a single company rep for business insurance including missed or under coverages. I shop around about every three years and have always found the all lines commercial agent to be more productive in finding the best deals.

One other piece of advice I would would have for you is to get a personal umbrella policy in addition to the Inland Marine. The reason for this is because that likely, as an upstart business, your personal assets may be mixed into the business and you could have a liability exposure should something really bad happen.

[PurpleFloyd]

PF-

that's my line. I own a Hardwood Lumber company. I think all our customers make all the money? That isn't true?

Well, maybe you need to send me some price quotes and I will see if I can milk a few sheckles out of your bottom line to boost mine

On a serious note how far of a radius is the area you serve? Do you only deal in hardwoods or do you offer sheet goods?