LLC and Insurance

Well...just completed acquiring general liablity insurance (1 million $) and set up my LLC.

That's $1grand per year b4 I kill another beaver or coyote......ummm!

Good investment in the sue happy world we live in.

Some companies that we do work for won't accept the 1 million coverage. We had to increase our coverage years ago due to those that require corporate liability of 2 mil or more.

Many insurance agencies won't write anything less in our market area. Glad you got established. It sure gives you peace of mind to be protected. Hope you never have to use it.

You will have to add the additional cost of doing business into your first few jobs every year to get re reimbursed.

Yea, It's surprising how much coverage some companies look for, A few years back Wal Mart wanted a million in coverage to trap rats out of retention ponds and on the other hand, The Great Escape theme park asked for my auto insurance as coverage, go figure. Yes it gives you peace of mind, But I still worry.

So far my biggest clients (large timber company and a hospital authority) asked for a 1 million $ policy and to be an LLC.

All my other clients are small landowners/farmers/plantation owners....don't even care if I'm insured or LLC'd.

I put in my estimates that I carry $1M of coverage and any additional coverage requirements will be billed.

Now here is what I will do....^^^^^^^

I have never attempted that type of billing approach. I know when it is requested our insurance coverage jacket states our limits of liability.

If it doesn't meet their liability limits we needed to update our policy coverage so we just increased our limits to meet the current corparate requirements.

All of our work is bid with all of our expenses in mind. One way or another clients will pay a portion of our annual premium until it is met. Just how business is done.