Insurance

[Kcinnick]

So, this past month, without even starting my business I sold 39 belts, a few holsters and a few mag carriers (holsters and mag carriers to friend and neighbors only). All from one thread on a local forum and word of mouth. I am incorporating March 1st to protect my personal assets, and I was wondering what kind of insurance everyone carried, and how much it cost?

A general liability policy shouldn't cost too much, but it seems like the only quote places are quoting a couple hundred dollars a month. That doesn't seem right for not having a store front. So how do you handle general/product liability insurance, and what is the ballpark cost? Do you recommend any insurance companies?

Thanks

[KAYAK45]

Building HOLSTERS AND MAG CARRIERS will scare the hell out of a "product liability" insurance underwriter!

One reason for your incorporation was to HELP insulate you from personal liability, but that may not work.

YOU as the INVENTOR/MAKER/OFFICER are always liable for your work, if NEGLIGENT. If you are the President or an officer of a Corporation and it commits a negligent act you are still responsible. Corporate protection only goes so far.

Many go without the product liability insurance (going BARE) for that reason, it doesn't really protect you and costs a lot.

One really good protection is to buy an individual UMBRELLA coverage, usually with your homeowners company. A couple MILLION extra coverage is more like ~~ $200/yr.

Call your, or a good, Indipendent Insurance agent that handles personal/commercial coverage. If you don't like the answers call another agent, that's free quotes!

Kevin

Whare is thee sp@;;lll chaeck?

[Kcinnick]

That may be what I need, would it cover myself and my wife, or would we each need a policy. In Louisiana, even though only one person is listed as being the owner of the incorporation, it is assumed that both spouses have equal ownership of each others shares. My wife is actually going to be the owner of the incorporation, she does the administrative side of the business and some of the making (belt keeps, burnishing, etc.).

Building HOLSTERS AND MAG CARRIERS will scare the hell out of a "product liability" insurance underwriter!

One reason for your incorporation was to HELP insulate you from personal liability, but that may not work.

YOU as the INVENTOR/MAKER/OFFICER are always liable for your work, if NEGLIGENT. If you are the President or an officer of a Corporation and it commits a negligent act you are still responsible. Corporate protection only goes so far.

Many go without the product liability insurance (going BARE) for that reason, it doesn't really protect you and costs a lot.

One really good protection is to buy an individual UMBRELLA coverage, usually with your homeowners company. A couple MILLION extra coverage is more like ~~ $200/yr.

Call your, or a good, Indipendent Insurance agent that handles personal/commercial coverage. If you don't like the answers call another agent, that's free quotes!

Kevin

Whare is thee sp@;;lll chaeck?

[KAYAK45]

Hey, I'm just a CPA in Illinois, with forty years of business experience, not an attorney.

Louisiana and Napoleonic Law is NOT my area. You need to check with an attorney and an Insurance agent, together as a team. I know the cost may seem prohibitive, but, the savings in insurance costs will be worth it. The insurance agent is "free" and the attorney's fee is one time (one/two hours), VS, years of insurance.

Kevin

PS: Pay for the attorney, if you get free advice from a friendly attorney, you have NO protection that you did your DUE DILIGENCE as an officer of the Corporation. Ask me how I know!<br class="Apple-interchange-newline">

[KAYAK45]

Hey, I'm just a CPA in Illinois, with forty years of business experience, not an attorney.

Louisiana and Napoleonic Law is NOT my area. You need to check with an attorney and an Insurance agent, together as a team. I know the cost may seem prohibitive, but, the savings in insurance costs will be worth it. The insurance agent is "free" and the attorney's fee is one time (one/two hours), VS, years of insurance.

Kevin

PS: Pay for the attorney, if you get free advice from a friendly attorney, you have NO protection that you did your DUE DILIGENCE as an officer of the Corporation. Ask me how I know!<br class="Apple-interchange-newline">

[Kcinnick]

My attorney works for leather, does that count as payment? He is writing up my NFA trust this week and I am delivering some belts to him as soon as he is done. He does estate planning, trusts, etc. I would assume insurance would be in his realm of expertise.

Hey, I'm just a CPA in Illinois, with forty years of business experience, not an attorney.

Louisiana and Napoleonic Law is NOT my area. You need to check with an attorney and an Insurance agent, together as a team. I know the cost may seem prohibitive, but, the savings in insurance costs will be worth it. The insurance agent is "free" and the attorney's fee is one time (one/two hours), VS, years of insurance.

Kevin

PS: Pay for the attorney, if you get free advice from a friendly attorney, you have NO protection that you did your DUE DILIGENCE as an officer of the Corporation. Ask me how I know!<br class="Apple-interchange-newline">

[KAYAK45]

Barter, trading services and goods, MIGHT/SHOULD be appropriate compensation. But, then the IRS question of BARTER come into question.

You seem to be OK, I think, to BARTER in the IRS view, since you are trading business (leather) goods for business service. The attorney might have a problem, that's not your concern.

By the way, remember my statement of paying for service? My advice is free, and therefore worth exactly what you paid. ZERO!

Kevin

Barter, trading services and goods, MIGHT/SHOULD be appropriate compensation. But, then the IRS question of BARTER come into question.

You seem to be OK, I think, to BARTER in the IRS view, since you are trading business (leather) goods for business service. The attorney might have a problem, that's not your concern.

By the way, remember my statement of paying for service? My advice is free, and therefore worth exactly what you paid. ZERO!

Kevin

[Kcinnick]

I barter for everything!

My graphic designer, web developer, forum sponsorship, attorney, and sights for my last gun were all traded for leather!

Barter, trading services and goods, MIGHT/SHOULD be appropriate compensation. But, then the IRS question of BARTER come into question.

You seem to be OK, I think, to BARTER in the IRS view, since you are trading business (leather) goods for business service. The attorney might have a problem, that's not your concern.

By the way, remember my statement of paying for service? My advice is free, and therefore worth exactly what you paid. ZERO!

Kevin

Barter, trading services and goods, MIGHT/SHOULD be appropriate compensation. But, then the IRS question of BARTER come into question.

You seem to be OK, I think, to BARTER in the IRS view, since you are trading business (leather) goods for business service. The attorney might have a problem, that's not your concern.

By the way, remember my statement of paying for service? My advice is free, and therefore worth exactly what you paid. ZERO!

Kevin

[Kustom]

I don't make gun leather, just wallets, bags etc. My policy for a home based leather business covers my machinery and inventory from theft, fire and terrorist attack plus gives me 1 million dollars of product liability for less than $1000 a year. If you need less coverage your premium would be less of course. My broker's email is chris.alexander@rlicorp.com. They only cover home based businesses. If you're working out of a retail or industrial space they won't cover you.