Cost of business Insurance in Metro Phoenix AZ?

Question

We are still in the planning stages of forming our business. We are looking to start an LLC that provides unarmed security guards to various professional business buildings in the Metro Phoenix AZ area. We would like to know a ballpark figure - for planning reasons - of what it would cost to get Workers Comp. Ins. and General Liability Insurance with the coverage in the amount of $100,000 for each occurrence, and an aggregate total of at least $300,000.

Thank you.

Answer 1

First off, I would STRONGLY recommend higher limits than 100/300.  I'm not even sure those limits would be available for your type of business.  I would definitely recommend 1,000,000 / 2,000,000 limits for the General Liability.  Think about it, if someone dies because your people failed to act, or acted negligently, is $100,000 going to be enough to pay off a grieving widow or some poor person's family?

Security business are a high risk so your agent would need to approach a non-standard market which generally means a lot less competition.  In your case, as a new venture, you'll likely only be able to find one or two proposals to get started.

To give you even a ballpark, we would AT LEAST need to know how many employees you plan to have for the first year.  Depending on the General Liability company, your premium will be based on either your estimated Gross Receipts or your estimated payroll.  The Workers Compensation premium will be based on your payroll.

Good luck to you!