Can anyone help out on this one?
Thanks in advance!
Hi Fernando, there isn't an ideal # or amount that one should pay for insurance. The reason I say This is because no one's business is the same as the next. Are you in florida by chance? I'm a commercial insurance agent and my focus is on placing general liability coverage for small business such as yours, painters, handy persons, restaurants, bars, commercial auto, commercial property ect. How much your policy will be is based on a number of factors.. 1. The coverage limits you request. Generally the coverage limits most all take is 1 million / 2 million. Which means that in any one incident the company would potentially pay out up to 1 million.. or up to 2 million in any one year.. there are two main reasons this is the coverage taken. The 1st reason is because the difference between the lowest coverage which is 100/200 & 1mill/2 mill is usually a small amount. The amount of coverage difference between the two is 900k of coverage for usually only a couple hundred bucks. The other main reason this coverage is selected is this is the limits that are required from any company higher up than yourself that you would be getting work from. Their insurance policy states that anyone they hire or sub work to must carry the same or higher limits as their coverage
Now your policy will be rated or classified by a couple main things. 1st will be (are you working at under 3 story's or more than 3 storys?) If your working above 3 storys then it gets more expensive and more difficult to get coverage because it makes you ineligible for the artisan programs offered by most companies. The next is going to be your payroll.. the owners of this type of business in florida anyway are given a bit of a break and they are listed with a payroll of $16,700 for each owner/officer/executive. . The employees you will have to figure what the payroll will be for them and list that amount. . The easiest way to figure that will be to decide the amount that would be paid to said employee on a weekly basis. Say 400 a week for easy math and then multiply that by 52 for an annual payroll of $20,800 for that employee or if they are part time it would be $10,400. (If your paying them 10 an hour) or if your doing sub contractors you would do the same type of guesstimate for them aswell.. just need to be careful with sub contractors because most of these policies only allow for minimal work to be sub contracted out less than 25% of the total receipts or it will make you ineligible and your policy would be cancelled. The other this is if your using subcontractors then you would be required to obtain proof of their insurance coverage and usually would have to require them to add you as an additional insured on their policy. Which is always part of the requirements of subbing out work to anyone under you..
Anyway I hope this helps. Feel free to ask if you have any questions
Yes you can always insure yourself & your business. But it is always advisable to speak to insurance consultants on first basis to get the best scheme, which can go well with your requirement. Also it is important from growing business point of view.
I would like to know what is the average cost of business insurance in the window cleaning industry. I run my own window cleaning services 95% residential & 5%commercial, we are now ladder less using up to date water fed systems, i sub contract friends when in need of help, 1099 forms are issued at the end of the year if needed. I am interested in knowing what is the ideal number is to pay when it comes to paying Liability Insurance. I have been in business for 6 years now 0 accidents, we take every extra measure to do the job as safely as possible. I am currently looking to getting more into commercial, and need more info and pricing on costs. Thank you in advance for your feedback.