What type of insurance do I need to start my own fire extinguisher sales and service business?

Question

I would be driving to customer locations throughout Minneapolis and St.Paul. I certainly have the proper vehicle insurance but I'm guessing I'll need insurance to cover myself against the unfortunate possibility that an extinguisher didn't work when it was needed. Any help would be greatly appreciated

Answer 1

Commercial General Liability(CGL) is likely the most important coverage for you.  Shop for a business insurance policy that contains it and any coverage you need for your own tools and equipment.

Errors and Omissions might be needed as well depending on the exclusions in the CGL.  My best advice is to get several quotes and get advice from a local agent or broker.

And do make sure that your vehicle is listed for business use with your insurer.

Answer 2

At the very least you will need "Commercial General Liability" (CGL) coverage that covers you if you are held liable for causing 1) Injury and 2) damage to property.

The cost of CGL is based on liability exposure.  For example a florist or a video rental store would have less liability exposure then for example a demolition company.  

I would imagine that a fire extinguisher sales and service business wouldn't be the highest exposure but obviously it is a lot bigger risk then renting videos and is going to requite a little comparison shopping to get the best rate.  

I would suggest using one of the following free services to get some quotes so that you will know for sure.

http://www.dpbolvw.net/click-3014621-104...

http://www.jdoqocy.com/click-2977717-104...

http://www.usinsuranceonline.com/usio/in...

Also you can go to http://www.InsuranceEasy.org to get some additional information.

You mentioned that you have the proper vehicle insurance.  I assume that you have "Commercial Auto" insurance.  If you don't have commercial auto insurance but only have "Personal Auto" insurance BEWARE!!!!! Depending on your auto insurance policy you may not have coverage while your vehicle is being used for business. This isn't always true but better to check now and know for sure then find out at claim time.

Answer 3

Not 100% sure how it works in the US but here in the UK you would need public liability insurance which provides and indemnity if you cause damage to third party property or bodily injury to third parties. Because you are selling/servicing fire extinguishers you probably need efficacy cover. This is cover if the product fails to carry out its intended purposes and results in your customer suffering a loss.

If you have any employees your will probably need employers liability cover. i think it's called Workers comp cover is the US.

Hope this is of some help

Answer 4

Well, that general liabiltiy coverage is EXTREMELY expensive, as you're looking at not the extinguisher, but all the damage that the fire does.  

GL coverage for this starts at around $15,000.  Plus workers comp, plus commercial auto.

Answer 5

Make certain your vehicle insurance is business rated.  Other wise you may not have the correct insurance.  As for the business.  You should get a general liability or a business owners policy(BOP),  The best place to start would be an insurance broker.  They can help you place coverage that will cost effective and do what you need.  You should asked about completed products coverage within those policy to cover the last question in your question.  Good Luck.

Answer 6

Do not take it for granted,use your own head to make the judgement.Here is a good resource I have tried.

http://insurance.online-assistant.info/i...