General liability questions


#1

Good afternoon guys. I know this question has been asked before but I am looking to get specific with it. I started a roofing company as a side business in Oklahoma, nothing more.

However, I am having trouble finding a reasonable company to use for my g.l. policy. I will be a sole proprietor with little to no overhead. I will use a sub-contractor who carries his own general liability and workman’s comp. I also will be performing some commercial but that wouldn’t be anytime soon. Some of the bids I am getting are all around 3,8000 annually for $1,000,000.00 in coverage for only 60k in sales. I find this ridiculous for such a low number of sales and that 60k was being generous in my opinion. Does anyone have any thoughts? The last thing I want to do is do business with a less than reputable insurance provider


#2

That’s 6.33% of gross sales. That is expensive. You have no experience modifier to go on since your new to the industry (as your own business).

How quick will you get over $60K in gros sales as that figure seems low?


#3

Yep. You have no history. That quote is probably based on you telling them you are doing this as a side job. Find a Risk Retention policy. you will be a shareholder in the coverage. That should help your rate.