Help with liability insurance (Full Version)

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iknowwhatiwant41 -> Help with liability insurance (9/25/2007 7:38:43 AM)

I am starting a new small biz, it is an adult toy home party...direct sales in peoples homes.  I'm assuming I need some sort of liability insurance...Anyone have info or a good offer for me>



farglebargle -> RE: Help with liability insurance (9/25/2007 7:48:37 AM)

Yeah, consult a licensed Insurance Broker in your locality.




pahunkboy -> RE: Help with liability insurance (9/25/2007 9:41:24 AM)

hmm. well that would depend on if the OP had any assests.  [i cant beleive im sitting in the computer chair with no seatbelt.]



Sternhand4 -> RE: Help with liability insurance (9/25/2007 9:58:57 AM)

Actually insurance isnt the first concern.

Is this like an Avon type product where your reselling anothers products ? Or is it a way to sell toys that you make? This is to determine if you need product liabilty coverage. If you dont make the toys then you have no need for this type of insurance.

The first issue in a small business startup is wether you want to have your personal assets at risk. If this is  not a concern then get a DBA ( doing business as permit ) which will allow you to open a bank account under your business name.
If you prefer not to have you personal assets ( like your house cars etc.. ) at risk you need to consider incorporation, there are a few differnt versions like LLC (limited liability corporations, etc..) check with an accountant to see which suits your business model best.
A good resourse ( and its free ) is SCORE  http://www.score.org/ they can often provide some guidance and help.

Setting up your business properly would be the best start..
Good luck 



pahunkboy -> RE: Help with liability insurance (9/25/2007 10:03:44 AM)

I have to wonder if the OP is serious. As the1st reply might have been sorta tongue and cheek.

Anyhow- in most states sex toys are illegal- they are to be 'novelties'.

im not a fan of insurance- as they have endless wiggle out of paying fine print. i view it as a cost of driving/living.

when i rented- i could take chances. now that i own- i cant/dont. tho the bank owns my house- now that i think of it



popeye1250 -> RE: Help with liability insurance (9/25/2007 10:08:17 AM)

quote:

ORIGINAL: Sternhand4

Actually insurance isnt the first concern.

Is this like an Avon type product where your reselling anothers products ? Or is it a way to sell toys that you make? This is to determine if you need product liabilty coverage. If you dont make the toys then you have no need for this type of insurance.

The first issue in a small business startup is wether you want to have your personal assets at risk. If this is  not a concern then get a DBA ( doing business as permit ) which will allow you to open a bank account under your business name.
If you prefer not to have you personal assets ( like your house cars etc.. ) at risk you need to consider incorporation, there are a few differnt versions like LLC (limited liability corporations, etc..) check with an accountant to see which suits your business model best.
A good resourse ( and its free ) is SCORE  http://www.score.org/ they can often provide some guidance and help.

Setting up your business properly would be the best start..
Good luck 



I'll second that and a lot of business insurance policies will have some type of liability clause or section included in them but they may vary by company.
After you incorporate check with an insurance agent or a few to see what type of policies they have and which would be best suited for your particular business.
I used to sell Life, Health, and Disability insurance but not liability.



Mercnbeth -> RE: Help with liability insurance (9/25/2007 10:10:45 AM)

quote:

ORIGINAL: iknowwhatiwant41

I am starting a new small biz, it is an adult toy home party...direct sales in peoples homes.  I'm assuming I need some sort of liability insurance...Anyone have info or a good offer for me>


As has been said consult with an insurance professional.

However consider a few things that are not obvious.

As a general rule the liability coverage amount should be equal to your net assets. Rarely will an attorney pursue more than you have; but they will go right up to the "limit". Don't under-insure - but most often the insurance broker will attempt to over insure to raise the premium cost.

There are many home based business package policies available. Out here they are as cheap as $750 / year. They cover all aspects from commercial use of vehicle to damaging a client's home during a demo.

Start with your existing coverage and insurance broker. The cheapest coverage is called an "umbrella" or "excess liability" it stands behind your existing homeowners/rental policy.

Going to people's homes to sell may effect your vehicle coverage. An accident on the way to a client can be perceived by an insurance company as "commercial purpose". If you didn't disclose this in your car insurance application any claim may be denied.

Setting up a corporation or an LLC will NOT insulate you personally from any law suit or claim. If you are the sole proprietor and/or sole person generating income an attorney can easily pierce the corporate shell and go after you. Don't be sold on any "protect your assets - incorporate" advertisement unless you plan on bringing in other investors, or employees, or large scale operation. It's not worth it and doesn't protect you.

Remember - insurance companies are in business and profitable because their 'claims adjusters' are mis-labeled. In reality they are there to NOT pay claims or pay as little as possible. If you go to the point of sale and dent a fender they may not challenge. If you'd had a drink at the party and on the way home get involved in a major, life ending or life altering accident they'll look at every angle NOT to pay out big. Going to a home for business purposes would give them that out.

Good for you and good luck on your business - HAVE FUN!



pahunkboy -> RE: Help with liability insurance (9/25/2007 10:28:50 AM)

this topic opens up a whole insurance q.

i thought once i get settled i will re-evaluate my insurances.

my home owners was $36 more for the $100 deductable. so for the money i thought is was worth it.

susy orman has an insurance kit that seemed interesting.

my auto insurance could be cheaper- at the time a ticket was pending.

worker comp insurance is the nastiest thing around; and typical health insurance is looking more like it -- the insurnace companies play both sides against the middle.
but then when you see the tall sky scapers- it is built with blood.

in a way- insurnce it like gambling,. you are placing a bet that you wont have an incident.
as w gambling- the house always wins...

when i owned in chicago- no one would touch it- so i had to get loydes of london. that was before the gangs torched my place.... the ins wouldnt pay until the work was done- and i couldnt do the work until i had some cash....argh.

then when my car was stolen by the body shop that was to fix it- the auto full coverage did not pay it. after the crooks were done staging car accidents- they torched my car- and it was found abandoned on the expressway. meanwhile- i bought a used car w cash advances. tho- it was my lucky that day- the same day my home was torched- i severely totalled my car w a tractor trailor in i80,.

this was in the 80s.   some losses you simply have to eat- there is no way around it



samboct -> RE: Help with liability insurance (9/25/2007 10:37:58 AM)

You may want to consider setting up a limited liability corporation (LLC).  Basically, if sued, they can only attach the assets of the corporation, not your personal assets, which means that liability insurance is probably not necessary- and as noted, probably useless anyway.

A useful resource for setting up a small business is SCORE- service corps of retired executives.  (google)  Believe it or else, it's something useful for your tax $$$.  The consultation is free- the people doing this are volunteers- but our gov't provides the facilities for you to meet.  Make sure that the person you're consulting with is very broad minded- you can request different folks.  Different states have different laws, so unless someone with PA based experience can chime in, I'd be cautious about applying somebody's experience in another state.  Also be careful about registering your biz- and whether there are some state taxes.  I got whacked in CT by the business entity tax- $250 a year regardless of whether or not your profitable.

Another alternative may just be homeowners insurance- or renters insurance.

Sam




iknowwhatiwant41 -> RE: Help with liability insurance (9/25/2007 2:53:44 PM)

Thank you eveyone who took the time to reply! I learned a lot and will follow up on many of the suggestions...Just love friendly human nature...And I will be sure to call it "novelties"!
Miss Beth



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