Insurance premium question for consulting firm startup?
I’m thinking of starting a consulting company. It would basically be a Management Services type firm. No design, construction, manufacturing, etc..
I don’t want to call around for quotes just yet so I am wondering if anyone could give me a ROUGH idea regarding annual premium costs for the insurance coverages I will need. Specifically I’m wondering about Commercial General Liability, Workers’ Comp, Professional Liability, and personal Health Insurance (I’m young and healthy). Again just ballparks on what I can expect for annual premiums. If I had 1 or 2 co-owners how will that affect the rates?
Thanks!
Tagged with: ballparks • commercial general liability • consulting company • design construction • health insurance • insurance • insurance coverages • liability workers • management services • personal health insurance • premiums • professional liability • quotes • rough idea
Filed under: Health Insurance Updates
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Well, the big question is, what EXACTLY is management services? That’s not a workers comp class code. And what’s the EXPOSURE on the professional liability? What type of BUSINESS do you want to consult for, what are the EXACT services you’re going to render, how many employees, what’s the payroll and estimated sales?
AND, what’s going to be required by contract? Are "co-owners" partners, or shareholders? Are they active, or passive?
Expect these to be MINIMUMS, and it will only go up based on your answers above: GL, starting at $1,000 as a new venture, based on payroll or sales. Workers Comp, minimum premium of $500, but could be as much as 25% of your payroll. Depending on the class, minimum could be MUCH higher. Professional liability – plan on $1500 per employee. It could vary from $500 to $5,000, depending on the EXACT nature of the services rendered, per employee. Health insurance will be individually rated – with three non-related people, that’s not enough for a group in most states. So if you’re 25 and healthy, $250 a month for just you.
Unfortunately, that is a very difficult question to answer. General Liability for a Consulting firm is easy. You would probable be looking at $350-$750 per year for a BOP which would be GL and Property insurance for your office. Work Comp would be based solely off of the payroll you pay out to employees. But for an office only type risk (i.e. you don’t go outside the office) you can expect to pay less than a 1% rate (less than 1% of whatever you pay out in payroll).
Professional Liability is much more difficult to estimate. The number of people in the office, the gross receipts you expect to make, the type of consulting you are doing and your client base all go into determining how much you pay for Professional Liability. This coverage you will more than likely have to wait until you shop it before you will know how much to expect.
I hope this helps!