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Insurance and llc

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  1. #1
    NHscrapman started this thread.
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    Insurance and llc

    Trying to get some ideas rolling here about being insured vs uninsured even llc. As a self employed person I carry insurance on my vehicle as well as myself. This covers my main business as well as scrap metal business (added this year) and covers up to 250-500k of damages made by myself and one other helper. As a small guy just starting out I did not carry any insurance whatsoever I didn't own a house and my car had no loan on it (no insurance required in NH unless you get lent money to buy one) and really i had nothing to insure. this lead to more profit for me but less high paying jobs. Fast forward to today House, 2 businesses family and all the stuff i have acquired things are different and one mistake followed by a few pen strokes it could all be taken away if the damages were high enough and trust me some areas I am in have $20,000 windows $100,000 floors. I could rack up some damages pretty fast if something went bad moving a fridge or installing landscape ext ext. I will soon be applying for my llc to keep my business separate from my house and family this will let me sleep better knowing my family will not have to pay for my mistakes. On the other hand all this protection is costing me a pretty penny and while i'm eating some of the cost some has to be made up elsewhere mainly in my labor rates which unfortunately for some of my customers are to high now but it has opened doors to new clientele that will not higher an uninsured workforce and are willing to pay higher labor rates due to the fact.
    How do you guys deal with the ever climbing prices of insurance and llc membership and do you pass the buck to your customers?

    Last edited by NHscrapman; 07-23-2013 at 05:33 PM. Reason: spelling and punctuation
    There ain't nothing wrong with an honest days work. Anyone who says otherwise is a fool.- Old Man

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    BarrenRealms007's Avatar
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    If it is an expense it needs to be figured into your operating cost and covered in the long run by your clients and not out of your pocket.
    We buy electronic scrap, Gold Karat scrap, gold filled, refined gold, silver and many other item's.

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    ginofrater's Avatar
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    It is just a part of the cost of being in businesses,and the charges has to cover it.

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    NHscrapman started this thread.
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    I agree with the fact that I must pass some of the cost of insurance onto my customers. but as a small business it is part of my tax write off so i do not include the total cost of insurance into my labor. This so far is the only way i can figure out how to combat the rising prices of insurance, well that and trying my best not to have to make a claim. Does anybody here who carries insurance ever find an actual scrapper/metal recycling slot for us to be insured under? My agent was very confused at what i do and even after explaining it to her she was still unsure exactly what to "categorize" me under. This is also "I believe" costing me more being insured in a category not tailored to our business. Any Ideas?

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    travistemple202020's Avatar
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    I do agree it is a needed thing now myself I go against this rule as I am much smaller so to protect myself I usually have people put things outside themselves so I do not go into places and if I do need to I take a risk at times but I will spend as much time as need to pull something out carefully

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    Insurance is my biggest overhead after rent. Vehicles, 2,000,000 liability, health, tools and equipment. However, you can't be without it. Many larger firms require an insurance certificate from my agent before we can go onsite.

    All costs of doing business must be factored in when determining your baseline cost of doing business. Do not hedge it with tax deductions. There are many ways to cut business costs while still considering all costs. For instance, we buy used trucks, never new. In this business a truck will old in no time so why take the beating on depreciation. If you shop wisely and wait for the right vehicle you can find so great trucks at very reasonable prices. It is also very nice not having to make all those payments.

    Just a few thoughts.

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