I would talk to a lawyer who is an expert in business asset management. Why not create several LLC's to segregate functions & risk including having one on the shelf ready to go just in case? You don't want a lawsuit, tax lien, UCC claim or any other dispute to slow or shut you down. You and your partner could even pay each other. If you form them properly you can switch cash flow to another LLC immediately without customers having to change the name on the checks.
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Insurance is a P I T A
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I don't think it works this way. I actually asked about sub contracting out installs, and we'd have to prove the sub had adequate WC in order to not get charged for it. So if we sub an install to someone who is not required by law to carry it (sole propriety, for example) we'd be responsible for covering that amount, too. In that case, its more work and the same amount of money (or more) to separate functions.
We're not that big of a company.
CanuckSigns
Active Member
That's crazy, we do the odd vehicle lettering job or trailer wrap here, our policy has a rider on it that covers client's cars left in our care, it cost like $40 a month or something.
inquiring about a rider is what got us in this mess. "oh, you put stickers on cars? you're now classified as automotive services!"
CanuckSigns
Active Member
That's stupid, time to find a new agent. Don't tell them you also apply vinyl to plywood, or they will rate you as a logging company
I agree a zillion percent that insurance is a royal PIA. IDK where in NJ you are located by I use AJM insurance (aka Assured Partners) in Mt Laurel. My agent recently switched us to a new company and the policy total came down about $2500.00 a year. I carry the full gamut of insurance and do mainly wholesale electric sign installation. We do the occasional truck lettering and it's covered by our policy under "property of others" and IIRC the coverage on that is 80K. While I should probably list my insurance agent as a dependent on my 1040/1065, the cost is much better than it used to be.
If they are too far just look for an independent agent. Avoid any of the companies that advertise on TV because you are just paying for their ads. Under any and all circumstances avoid CNA insurance company. While they might have low come-on rates they will royally screw you over on any claims. I'd go out of business before giving CNA another dime.
Also, no matter what agent you end up with, every few years tell them you are going to shop around for insurance. That will cause them to sharpen their pencil for sure.
Good luck with it.
If they are too far just look for an independent agent. Avoid any of the companies that advertise on TV because you are just paying for their ads. Under any and all circumstances avoid CNA insurance company. While they might have low come-on rates they will royally screw you over on any claims. I'd go out of business before giving CNA another dime.
Also, no matter what agent you end up with, every few years tell them you are going to shop around for insurance. That will cause them to sharpen their pencil for sure.
Good luck with it.
JamesLam
New Member
A few thoughts...It has been suggested that we shop around for new insurance every two to three years. This applies to home, life, auto as well as your business. The valuation of your assets and equipment, corporate revenue, liabilities, etc. are fluid. You may think you have the best policy but one misstep by you and a failure to declare something can void your coverage. The other difficulty I see quite often is that your agent/broker is more focused about the insurance legalese and really has no idea what you do. Talk to other shops in your area and see how they manage their coverage. Possibly they have a lead on an agent/broker who truly understands what you do and can provide fare rates as well as ideas how to reduce or eliminate some unnecessary costs. Last thought, I find that if you go through a travel broker whether online or at an agency you will always find better travel options then if you give over priced airlines like AA a call direct. My experience anyway.
JamesLam
New Member
This highlights a really important point, similar to what I said earlier, your agent may have no idea what you really do, so make sure they truly understand your business. If they continue to give your the glazed chicken look then it's time to move on. For a while we were getting forestry & logging news magazines. I'm suspicious that they got our info from WSIB (Ontario). Anyway we looked into why we were getting this stuff and that's when we discovered that we were classified completely out of left field and were about to pay a huge premium as a logging operation. We had one table saw and a table mounted router. Needless to say old growth forests had nothing to fear.
kcollinsdesign
Old member
It makes no sense to not have workers compensation. Not only is it illegal to have uninsured employees, but if one got hurt your assets could vanish in a flash!