Very Important Insurance Questions For "Newbies"

[josie67]

hi all,

I was wondering if any of you with insurance already, would be able to help me out a bit. I'm wanting to educate myself before talking to agents since they usually seem to not want to answer too many questions in details. Not sure if that's because a small cleaning business or auto insurance, etc. is small potatoes to them in regards to their commission or what.

I'm trying to find out if there are any specific clauses or aspects of a small business liability insurance contract that I need to pay special attention to.
Are there any "whatever you do, make sure that they state this or that in the contract!!", or any "make sure you don't fall for the so and so clause that they will try to sell to you, it isn't even worth it or useful"?....

Also, other questions in regards to a new business owner's liability insurance policy:

-Are all of the typical contracts for a janitorial business going to be the same? Do you have to fish or dig for certain aspects/clauses to be incorporated into your insurance plan?
Do agents tell the potential purchaser everything they need to know or do we have to educate ourselves on all aspects of the policy?

-What are some things that are actually covered??? I read in one of Dan's post that if you were to damage a carpet or tile floor or similar, that your insurance would actually NOT cover it!! What is that all about? Isn't that the ACTUAL PURPOSE of the insurance?? It's confusing

-And lastly, with sales, businesses typically want to get you in the door first, so to speak...and then, after you make a committment at their initial low price, tack on extra features you didn't know about. So in essence, your quote you received was not really accurate.
Do any of you find that after your policy purchase, that there are fees added later on, that no one talked with you about in the beginning stages? Like maybe a broker's fee or your yearly cost was doubled because of some hidden law or whatever, or that after each employee is hired the yearly cost will go up way too high for certain types of policies or from specific insurance companies.

Thanks a bunch!!! Sorry bout the length of the questions but I believe this thread will help a whole lot for other newbies, in the future.

Josie

[logan5127]

I have had same company for three years . Price has pretty much stayed same. My insurance agent told me that what we actually worked on was not covered. Didn't make since to me either. I think its like getting health insurance and they want cover any pre existing problems. They cover their self. Most losses would probably be from what you are working on. My brother had cleaning company and had a claim that was fairly expensive and his policy was terminated after this incident.I know i also had to inform insurance agent that we mopped floors while some stores where opened. I think that is an extra clause. Also if you want any equip. listed it has to be added into policy.I don't understand all the lango used in the policies but I am sure some members do.As far as what is covered may be different for other insurance companies. Do you veterans know if your liability covers what you are actually working on? I would like to know also if this is universal or not.

[Grizzly]

We deal with relatively large insurance company that has a broadform policy applicable to a number of contractors of varous professions. Things to conssider are the policy will probably have a basic package with general liabiliyt coverage. Make sure you have endorsements for the following that I consider necessary: (excuse me but can't remeber all the definitive terms), accidental coverage for your staff, third party coverage for basically if you screw up a job it provides coverage to repair, non owner auto use, loss of use for your equipment, employee dishhonesty coverage, . There are more but I don't have my policy in front of me. There are clauses (endorsements that they may try to sell you but youwill have to decide on for example coverage for your accounts receivable, coverage for your business records if destroyed, office contents coverage. This may have muddied the water for you but I hope it provides some info

Bill

[Kevin]

Loss Key Coverage, if you or you staff would lose the keys to the building, and the owner request that all 100 of those locks are changed... this insurance is good, very good.

[josie67]

Thanks everyone who posted. Here are a couple of pages with some info also.

(about being fully-insured)

www.wcmail.net/archives/PreSep2005/March_2005/msg00734.html

pretty good info here (below):

www.build-a-business.com/insurance.htm



Josie

[tracey48429]

Does anyone know what the minimum amout of Liability Insurance is required? What is the minimum amount you can buy? This is all new to me!

[Kevin]

The lowest i`ve seen is $100,000 It really depends on what your customer is going to require. You can always increase at anytime.

[tracey48429]

OK here I go again! I called and got a quote on 100,00 insurance but he asked my how much I needed the bond for. He said he has personally never hired a cleaning co that was bonded. I KNOW MOST ARE BONDED. He acted like it was something I shouldn't have to do. I want to protect myself though. Any thoughts anybody?

[russo]

bonding is cheap... around a 100.00. it is always a good idea to protect yourself. if you have the cash.... i would do it.