# Basic GL insurance



## Oconomowoc (Oct 13, 2011)

It seems like we get a lot of insurance questions on this forum and it becomes a debate with some people because of monthly expenses etc for those starting out.

Many of us are heavily insured and probably over-insured to a certain extent. 

I'm curious about basic GL insurance for these new business owners. Don't they offer small policies for like $250k instead of the usual 2 million etc? They use to offer those smaller amounts.

Does anybody here have just a basic and inexpensive GL policy? It can't be that expensive right?


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## Andrew6127 (Aug 14, 2012)

I have been looking into insurance for myself so I can work as a sub. 

I have found that it is way more inexpensive than I first thought. 

Spoke to a lady a few weeks ago about getting myself a policy and for general liability for just myself with 500k to 1mil it'd be between 850-1000, this would just be for myself while using a DBA. 

She said after a year or two the price would come down a bit but because I have never had liability before it'd be more expensive in the begining. 

I thought it'd cost my thousands. 

Speaking of insurance, I'm curious if any of you have heard of this before. 

Guy wants to hire me, plans to bring me in as a sub for a short while...says the cost of getting me set up on payroll and all that for him is time consuming and costly, he's had 5 or 6 guys work a few days for him and walk off the job because they didn't like heavy lifting or it was too hot...people just generally being lazy. 

He tells me while I'm working as a sub for him while I'm "proving" myself he wants me to carry liability but he would pay for the cost of the policy himself upfront. 

Anyone ever done/heard of other doing this before? 

Sorry dude, I'm not trying to jack your thread.


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## summithomeinc (Jan 3, 2011)

How inexspensive do you want? My basic premium is around 130/month for comp an 1mill. Liability. The liability is 500 thou per occorance. 500,000.00 is not enough to replace a house and belongings in many places I work.


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## summithomeinc (Jan 3, 2011)

Andrew6127 said:


> I have been looking into insurance for myself so I can work as a sub.
> 
> I have found that it is way more inexpensive than I first thought.
> 
> ...


Paying for the policy is less exspensive Han covering subs on their own policy. I have considered doing it that way myself.


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## mrcharles (Sep 27, 2011)

This is still illegal..... I know this is how things are now a days, but we wont get ourselves out of this hole and wont be able to pay a guy a decent wage and benefits until we stop paying guys like this.


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## ExtremePride (Oct 27, 2010)

I have had my policy for 4 years. I pay 1250 a year for 600,000. Never a claim yet thankfully and the price has never gone down. Becareful at tax time, they like to hit you hard with the audits. lol


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## Oconomowoc (Oct 13, 2011)

summithomeinc said:


> How inexspensive do you want? My basic premium is around 130/month for comp an 1mill. Liability. The liability is 500 thou per occorance. 500,000.00 is not enough to replace a house and belongings in many places I work.


I guess I thought I remembered smaller type policies, 250k rings a bell but maybe times have changed. Lol

A 20 year old starting out should be able to get minimal coverage for the first year. It's not as if they will have non-stop work the first year. If I have time maybe I'll call my agent and just ask her what the minimums are. 

It just seems like a lot of guys starting out don't even call to figure it out. They just assume is expensive but I believe a basic 250k policy is still offered.


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## ExtremePride (Oct 27, 2010)

When I went shopping around for my policy they didn't want to give me one. They said I had to be in business for myself for something like 3 years before they would give it to me. I had been doing enough side jobs that they gave me the policy. That may just be around my area, or the agents are just really lazy at times.


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## WilsonRMDL (Sep 4, 2007)

I have $300k GL, runs $55/month for general carpentry


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## Oconomowoc (Oct 13, 2011)

WilsonRMDL said:


> I have $300k GL, runs $55/month for general carpentry


Thank you!

Ok, so this sets the bar and now we all have ammunition for when the guys keep posting about not having insurance. 

If you are starting out and can't afford $55 a month that's pretty pathetic. 

I just wanted to find out the minimum so when people post and complain about affording it we can respond with something.


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## Oconomowoc (Oct 13, 2011)

ExtremePride said:


> When I went shopping around for my policy they didn't want to give me one. They said I had to be in business for myself for something like 3 years before they would give it to me. I had been doing enough side jobs that they gave me the policy. That may just be around my area, or the agents are just really lazy at times.


Think of the irony here. Lol

They want you to be uninsured for 3 years so they can insure you. LMAO

Then......to top it off, when getting insurance it's usually more expensive to get a policy if you have never had insurance. LMAO

Maybe I have a dry sense of humor but that's funny!


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## BamBamm5144 (Jul 12, 2008)

I'm always surprised when I hear how low of an amount some guys pay. I must be doing something wrong.

Last year my policy cost me about $400 a month after a $1800 downpayment and I still got hit with $2300 at audit time. I'm paying nearly $700 a month now.

Between liability, work comp and audits, I'm already over 20k this year for insurance. I've yet to have any claims.

Am I doing something wrong?


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## jb4211 (Jul 13, 2010)

I have $3m of GL, $1m per and a $30k Inland Marine policy for trailer and tools and I pay $1200. And I complained about it being too high.


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## Oconomowoc (Oct 13, 2011)

BamBamm5144 said:


> I'm always surprised when I hear how low of an amount some guys pay. I must be doing something wrong.
> 
> Last year my policy cost me about $400 a month after a $1800 downpayment and I still got hit with $2300 at audit time. I'm paying nearly $700 a month now.
> 
> ...


No, you are not! Lol

I'm just a solo act and I'm shelling out almost 200. I have dam good coverage but I have a wife and 3 kids to think about.

You and I could probably get a cheaper rate but for me personally........ I really like my agent and company. They insure everything including special items non related to business. I just don't trust these folks who constantly call.me and solicit for business. Maybe I'm wrong but once again I buy local.

Also, not all policies are the same. A 2 million dollar policy doesn't really say a whole lot. Many insurance policies have exclusions.


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## jb4211 (Jul 13, 2010)

BamBam, do you shop insurance annually, or just renew and trust your agent? A friend of mine never shopped until last year. For the same coverage he is now paying half of what he was. He was with Harleysville, now with Hartford.


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## Inner10 (Mar 12, 2009)

I pay 3k a year in business insurance, liability is probably 800 bucks of that.


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## EthanB (Sep 28, 2011)

Some of the problems new businesses have with locating policies and determining the appropriate classifications and coverage amount could easily be handled by working with a decent insurance salesperson. I have a guy who handles my personal stuff and a guy who handles my business stuff and they have access to multiple vendors and know the best rates off the top of their heads.

Why try to figure this stuff out for yourself when you're also learning how to run a business? Hire someone like Astrix to do it better than you can.

To keep things in-line with Mike's first post. I started out paying around $600 a year for $500k/$1 million in coverage doing interior only projects. Be insured for things you do but don't waste money being insured for things you don't.


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## Ninjaframer (May 28, 2011)

BamBamm5144 said:


> I'm always surprised when I hear how low of an amount some guys pay. I must be doing something wrong.
> 
> Last year my policy cost me about $400 a month after a $1800 downpayment and I still got hit with $2300 at audit time. I'm paying nearly $700 a month now.
> 
> ...


I'd bet the rate for roofing is the highest.


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## Oconomowoc (Oct 13, 2011)

Funny thing, and I never understood this......

My policy was MORE expensive if I exclusively did just residential. If a plumber does a mix of both commercial AND residential the premium was actually less. Go figure. Lol


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## Oconomowoc (Oct 13, 2011)

EthanB said:


> Some of the problems new businesses have with locating policies and determining the appropriate classifications and coverage amount could easily be handled by working with a decent insurance salesperson. I have a guy who handles my personal stuff and a guy who handles my business stuff and they have access to multiple vendors and know the best rates off the top of their heads.
> 
> Why try to figure this stuff out for yourself when you're also learning how to run a business? Hire someone like Astrix to do it better than you can.
> 
> To keep things in-line with Mike's first post. I started out paying around $600 a year for $1 million in coverage doing interior only projects. Be insured for things you do but don't waste money being insured for things you don't.


How the hell did you get it that cheap?


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