Jump to content

Insurance quote....


Recommended Posts

Just got out of a meeting with my Farmer's Insurance agent. They can't directly write the policy because I'm a new business. So they partner with Northland Insurance to underwrite it.

Here are the details:

Each occurence limit: $1,000,000

Damage to premises rented by you: $100,000

Medical expense limit: $5,000

Personal and Advertising Injury limit: $1,000,000 (what the hell is an advertising injury......paper cut?)

General aggregate limit: $2,000,000

Products/completed operations aggregate limit: $2,000,000

Annual premium: $630

They claim that these are the lowest limits they can write. Being that it's liability only, there's also no deductible.

To me, this seems a bit high (the $630 premium). When I was in the ATM business I had a policy for about the same limits and same cost - and that covered CASH as well as the ATM's.

Thoughts?

Link to comment
Share on other sites

My broker told me that it depends on what you gross for the year. Since I just started out, my liability/fire coverage costs me 200$ a year (I am grossing under 25K so its the minimum). It looks like we have similar coverage other than that.

Link to comment
Share on other sites

I happen to have just had State Farm run me a quote for a $25k/year gross business with $25k in machines (just some numbers that gave me room to start and grow). The $1 million in liabilty insurance was only $52 annually, the property loss ($500 deductible) was $276 annually. With used machines, I don't expect to go with the property insurance. I haven't yet asked if I can get the liability only portion of the policy at the $52/year, but based on my quote I think you should keep shopping. That is in Oregon, BTW.

Link to comment
Share on other sites

Just got out of a meeting with my Farmer's Insurance agent. They can't directly write the policy because I'm a new business. So they partner with Northland Insurance to underwrite it.

Here are the details:

Each occurence limit: $1,000,000

Damage to premises rented by you: $100,000

Medical expense limit: $5,000

Personal and Advertising Injury limit: $1,000,000 (what the hell is an advertising injury......paper cut?)

General aggregate limit: $2,000,000

Products/completed operations aggregate limit: $2,000,000

Annual premium: $630

They claim that these are the lowest limits they can write. Being that it's liability only, there's also no deductible.

To me, this seems a bit high (the $630 premium). When I was in the ATM business I had a policy for about the same limits and same cost - and that covered CASH as well as the ATM's.

Thoughts?

Yeah,

I have a thought - next time you ask for a quote tell them you've been in business for three years. You've already been in the ATM business which is a form of vending and there's nothing that could happen with your machines that couldn't happen with mine. I pay $300 a year based on 60k gross

Link to comment
Share on other sites

I did check back to resolve a few things with the quote and found out that there is a certain lower limit on State Farm's policies. This one was quoted at $305 annually and it doesn't matter if I drop the property value down a little or a lot, that part of the premium stays the same. Package deal essentially - you can't get the liabilty policy alone. So you have to buy the property portion of the policy in order to get the liability portion of the policy. Basically I guess you treat it as a liability policy and don't claim any property damage if you have cheaper used machines that are essentially worth the deductible. That's still way better than the $630 annually for liabilty alone that Farmer's quoted you.

If you have nicer, newer machines, at least you have some property coverage (less deductible) - but if you exceed the upper limit on property value you have to let them know and that portion of the policy starts going up.

Link to comment
Share on other sites

  • 3 months later...

Find an independent agent.  Each company might have a "minimum premium".  Therefore when you make less than so much per year you still have a minimum premium to meet.  In my experience it can range from $350 to $550 and with additions go up from there.  One thing that I saw a few people touch on is that you might want to make sure that running your vending route and getting into an accident is covered.  Pizza delivery drivers have a problem with this.  Doing business in a personal vehicle.  Careful as there could be exclusions under your personal auto policy.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...