Startup business question

[David Harper]

Hello ...... I'm new to this forum so bear with me lol

I've been in the automotive industry my entire life, working in retail environments, small family owned shops and a few large new car dealers. My wife and I are trying to open our own place and are currently in the middle of financial projections. Part of that is estimating our fixed and variable costs. We are in NH and I've been getting rough estimates for liability insurance for the business from a number of different Insurance companies. These estimates are all over the map! Anywhere from $900 a year to almost $6000! My question for the forum is ....... does anyone have a realistic idea of what this coverage should cost?

Thanks

Dve

[HarrytheCarGeek]

Welcome. You need to read up on insurance and what coverage you are getting. You know Apples to apples, the carriers make it complicated so you can get stiffed in case of a claim. Zurich Insurance Group have been one of my best carriers. Pricing should be consistent on the amount of risk you are seeking to cover.

[HarrytheCarGeek]

Automobile Liability
General Liability
Garage Liability
Garage Keepers
On-Hook Liability
Worker's Compensation
Excess Liability

[AndersonAuto]

Zurich is good. I'm currently with Federated, who are equally good. 

Your garage keepers liability is going to be based on your sales or expected sales, and the value of the vehicles under your control. My garage keepers runs me about $850 a month, but yours should be considerably lower on a new shop with lower sales.

[xrac]

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[bantar]

Unfortunately, getting insurance quotes from industry veterans might be a bit misleading.   You and I, as a startup operations, are inherently more risk to the insurer than these experienced operators.  As well, I've found that our options are more limited with some insurers flat-out saying no thanks (this happens at underwriting, not necessarily at quoting).   As a result, I've found a broker, with direct auto experience, that I trust who can match my needs with the market offerings.   For now, these lower rates are a fantasy, but a cost to be managed with time and reputation.   My broker indicated that 3 years of experience stops the teenage driving rates.   For your planning, plan on the high side.    Also, a semi-real quote seems to need 20 pages of Q&A along with driver's licenses, etc.   To get around this, my broker brought me blacked-out (names, addresses) quotes for a few similar sized businesses to review. 

I don't see this mentioned, but depending on whether buy or lease the building and the terms of your lease will also impact your insurance needs.   For instance, your landlord may impose additional insurance requirements on you.   This matters in how you make comparisons as well.