The hunt for insurance continues...

[Stephan]

Well, the hunt for insurance is killing me.

My latest phone conversation was very interesting. After getting turned down once again (I didn't actually get turned down, but $12,000/year for the lowest amount of ceverage tells me they don't want me), I asked the insurance guy a few questions:

Me: Ok, since we won't be doing business together, tell me, what's holding me back from getting insurance?
Him: You have zero experience so no one wants to touch you. If they do, it's going to be for a hefty price.

Me: So what's my way around this?
Him: Ok, this conversation never happened. You have to lie and tell them you have a minimum of three years experience. From my experience even if there is a claim, they will never ask for proof of the amount of experience you said you had.

Me: What else?
Him: I know you said you don't want to do residential, but if you did, it would make it that much harder as you might be dealing with animals, children playing on the floor that you just cleaned with chemicals. Stay away from residential.

Me: Anything else?
Him: Stay away from industrial. They are worried about you or your staff working around heavy machinery. Also, don't sell commercial cleaning products. Paper products are fine, but stay away from selling the chemicals.

Me: Hey, thanks for the honesty.
Him: Look, I know it's super tough for new small businesses. Good luck.


So, does this leave me with my only solution of lying about my experience? I guess I have no choice. I'll be calling a few tomorrow ready with my sheet of lies

[Linda]

I dont really understand this Stephan. I went into my normal insurance company where we have our car insurance. I told them I just started a janitorial business and I need 1million limited liability. They did a search and the best quote they found for me was less than $500.00 a year. I told them I would be doing residential and commercial.

Linda

[Housework Maid Easy]

Hi Stephen
What Linda said is exactly how I got my insurance. I'm in Florida and I have 1 million limited liability for a little over $700 for the year. There was a few questions asked, but I didn't have to lie. I pay less than $200 per month. Good luck with you search, Marsha

[Grizzly]

Stephan:
Give me a call, see if I can help you out.

Bill

[Stephan]

Let's hope I can get premiums as low as you guys!

Before my old job closed the doors, I asked the cleaning company to fax me proof of insurance (was collecting as much info as possible from other cleaning companies in the area). It contained all the coverage that the company has, and they even left the premium on the sheet for me!

For $5,000,000 coverage they are paying $4,790/year. This is a company that started in 1961!

I'm hoping to be able to find something no higher than $1,200/year...

Bill, I'll give you a call later on today. I have a few errands to run this morning.

[Stephan]

I finally seem to be getting somewhere.

Lowest quote so far is $742.38/year tax in ($1,000,000 liability + $1,000 lost key). Only thing is, they don't offer bonded or employee dishonesty insurance.

I need the bonded as most businesses ask for it (even though it is essentially useless), so I'll keep calling around.

Funny thing about the quote I received above is they never asked how long I've been in business or if I've had previous claims. Good for me!

[Linda]

My insurance is thru Acuity. Smith-Feike-Minton, Inc is the Agency I went thru to get my quote. Acuity charges me less than $300.00 a year for 1 Mill. limited liability. Their number is 800-242-7666

Linda

[Suzanne @ Cleaning Diva]

Stephen,

I operate a one year old business in Toronto, Ontario and have $2,000,000 liability insurance + bonding for up to 10 staff at an annual cost of CAD $750.00. This is through Atto Associates, tel [phone] and ask for Linda Demers.

Good luck,

Suzanne Clark
CLEANING DIVA

[Pages Personal Cleaning]

I am with Linda as to why some people have such outrageous rates. Around here you can get 1,000,000 liability for 300.00-400.00 per year. It just takes making a lot of calls and checking around with different companies. It is harder with me since we service 3 different states (Ohio, Indiana and Kentucky) I have to have a company that is licensed in all the states to cover myself and my employees. But even at that it is only 400.00 per year for me and my employees.
Patti