Question about insurance

[Scapigliatura10]

I have completed my business plan I am currently in the process of paperwork for licensing. However, I am having trouble getting accurate cost estimates for insurance. I have contacted several of the insurance providers that have been discussed within this forum, but they cannot give me a ballpark figure without a lot of information that might still be subject to change. Does anyone mind sharing ballpark figures for what their monthly insurance costs are? I will have no employees, and not have more than 250 gallons of product in house at a time.

Thanks.

[Scott @ Twenty2Vodka]

Obviously lots of factors will determine this ballpark. And I totally echo your frustration talking with insurance companies who all seem to want to know "How much money are you making?" first and foremost. I think the insurance industry is the only one that gets away with knowing what you are capable of paying before they tell you the price they will charge you. From my experience, there is no escaping this component of their interview, so you are eventually going to have to offer that number up. If your hesitation is because the number may change, they definitely know that already and factor that into your premium.

I would suggest first break down all of the things you want to insure: TAx Bond, Autos?, Inventory, Liability at your shop, liability away from your shop, life insurance (borrowers might require this). Then figure out how much you want to insure each for. Then deal with your insurance co with the items above as individually as possible for the first year or two. They are all going to ask for the same basic information, so offer it up, and move on. After you are up and operating, and have a feel for exactly what should be insured and what shouldn't, you can consolidate. And by dealing individually, I mean spending the time to uderstand each policy, what it covers and how much, as well as understanding the backdoors that are part of every policy that lets the insurance co get out of covering you (acts of god for example).

I could tell you what I spend monthly on insurance, but my bond, premisis, equipment, revenue, and (probably the biggest factor of all) my geographical location in the country are not going to be the same as yours, so my number is really not valuable to you. This is going to be one of those things to budget high and work hard to get under. Though with what you described for your setup, your total should be way less than $1000 per month...

Best of luck,

-Scott

[pressure9pa]

Thanks Scott. I had asked a similar question in another thread. I was using $475 / month for liability, and most basic coverages but not including the bond, autos, or life. Hopefully I'm in the infield, and not just the ballpark.

[adamg]

I'm actually an insurance agent (who wants to open a distillery) but can provide help with health, life .... Insurance if anyone has questions. I do not have experience in P&C just health, life, dental, vision, disability. Dealing with Life insurance daily I can tell you prices, vary wildly depending on age, weight, health, zip code and insurance carrier. I would suggest for those going to a broker who can quote out several companies not the local Allstate or other "Captive agent" who can only sell from one company.