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6 Replies Last post: Mar 1, 2008 12:30 PM by mainstreetifs

What Insurance Do I Need for My New Business

Feb 22, 2008 9:52 AM

shamsharif 2 posts since
Jan 8, 2008

Hi,
I am from Charlotte in North Carolina. I am opening a new retail store. It is a franchise that provides office supplies and inkjets cartridges.
I am wondering what kind of insurance do I need for my business. I still don't have a location yet.... still in searching process.

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LUCKIEST 7,933 posts since
Aug 6, 2007

1. Re: What Insurance Do I Need for My New Business Feb 22, 2008 4:22 PM

Welcome to this web site. Tell us more. besides insurance.
When will you be opening this franchise.
When is the franchise offering?? A Location??
Part of being in business is having an Accountant, A lawyer and an Insurance agent.
Good Luck, LUCKIEST.

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shamsharif 2 posts since
Jan 8, 2008

2. Re: What Insurance Do I Need for My New Business Feb 23, 2008 9:38 AM

in response to: LUCKIEST

Thank you Luckiest.
The opening of the franchise will be done as soon as we find a location and get it ready. Hopefully in early May.
The retail place should be surrounded with both residential areas and small business as we do serve both.
We have an accountant. But we are still searching for a lawyer and an insurance agent. Do you have any recommendations??

Shamsharif

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LUCKIEST 7,933 posts since
Aug 6, 2007

3. Re: What Insurance Do I Need for My New Business Feb 23, 2008 11:41 AM

in response to: shamsharif

Still searching for a lawyer and an insurance agent??.
ASK FRIENDS and other business associates for recommendations.
Try the yellow pages and the Chamber of Commerce in your town.
LUCKIEST

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dublincpa 165 posts since
Jan 29, 2008

4. Re: What Insurance Do I Need for My New Business Feb 23, 2008 4:18 PM

The typical insurance coverages:
E & O if there are outside investors.
General Liability
Physical Premises/Property
Auto
Umbrella
Workers Comp especially if you have non-owner/officer EEs (Some states allow officers to be exempt.)

There are other coverages taht may be beneficial:
Life to fund a Buy-Sell (You used we at one point in your second post)
Key Person Life insurance paid to company to smooth a loss or pay off financing
Disability (especially if you waive Workers Comp for officers)
Business Interruption

I know of a couple good insurance people. Email me at dublincpa@gmail.com if you want their contact info.

Good Luck.

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elpelp 6 posts since
Feb 23, 2008

5. Re: What Insurance Do I Need for My New Business Feb 23, 2008 8:04 PM

There are a lot of types of business insurance. Here's a quick overview of some to consider for your business. http://www.bizscoops.com/2008/02/18/business-insurance-overview/

They have some other good articles and educational overviews as well.

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mainstreetifs 34 posts since
Dec 20, 2007

6. Re: What Insurance Do I Need for My New Business Mar 1, 2008 12:30 PM

For a small retail store you will need a Business Owners Policy (BOP) which is a policy designed for small business that covers property, liability, business income (loss of sales/profit in case of a loss), employee dishonesty, etc. It is a fairly comprehensive policy for the small business owner. I would suggest looking at the standard A+ rated, Admitted carriers like The Hartford, Travelers, CNA, Allied/Nationwide and Zurich (your franchise may have a special program with a certain carrier or agency). You will also need Workers' Compensation insurance if you have employees. Those are the two miniumum requirements.

On top of that you may need health insurance for you and/or your employees and it is never a bad idea to get a term life policy if you are taking on dept to open the business. God forbid but if you pass away, you don't want to leave a big headache for your family. Most people can get a good term life policy for the amount of debt (maybe $300-500k for a store like that?) for under $60 per month. It is pretty cheap.

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What Insurance Do I Need for My New Business

Feb 22, 2008 9:52 AM

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