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All, I have just passed MD home improvement business and almost in business!!! I hope you can accept me in the forum until my business is officially registered. If I may continue, I have a couple of start-up questions.

1- Regarding business insurance. I have called several companies so far and they all say we need so many years of experience to provide a policy. One company I called, they said they will "Just put 5 years of experience" which makes me very uncomfortable. I want to start this right and I am not about to mess with the big insurance, should they ever need to pay..... How did you all started and what/who did u get as your insurer?


2- question 2 is regarding "written signed contract" between you and your customer. Did you all write your own contract, found some off-the-shelf contract, or had a lawyer write it up for you? I have an appointment with a lawyer next, but if there is a cheap way to get a valid contract template that would be great.

Once again, Thank you all.
 

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Not sure about MD, as I live in NY but as for Worker's comp the only way to get insured without multiple years of history of no claims is through the state. More expensive this way but only way to go for a new business. As for the contract I pulled bits from multiple contracts I found online or from local businesses in the same field. It's probably wise to have a lawyer look it over to be sure you've covered all your bases.
 

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Insurance:
Workers comp I had to get through the state as posted above.

Liability, my agent found a small company that specializes in insuring new contractors. None of the big companies will touch us without 3-5 years in business.

Contract:
I copied one someone posted on here, tweaked it to fit what I do, and then had my lawyer look it over.
He made a few minor changes, and said it was good to go.

I think it's in the business section on here there is a file swap area you might check out.

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Discussion Starter #4
Thank you for the replies.

Just to be clear. I am talking about liability insurance, not worker's comp.
I am a one man company (owner) and don't need worker's comp insurance. Worker's comp is for anyone with employees (Am I wrong about this?)......
 

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Not sure about MD, as I live in NY but as for Worker's comp the only way to get insured without multiple years of history of no claims is through the state.

Here any new business has to be put in the high risk pool.

Too many contractors go into business and screw Worker’s Comp. so any new business needs to go in the high-risk pool which is obviously a much higher cost Until you have a track record with a couple years of experience under you


I don’t know about liability I had no problems getting liability coverage for my new business


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Thank you for the replies.

Just to be clear. I am talking about liability insurance, not worker's comp.
I am a one man company (owner) and don't need worker's comp insurance. Worker's comp is for anyone with employees (Am I wrong about this?)......
Technically you are right.

If you plan on doing any sub-contract work, you will have to have it. Even if you exclude yourself.
Also, if you hire anyone as a sub-contractor, you need to make sure they have it. If they don't, you will have to pay it, on them, when you get audited.
 

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Capra Aegagrus
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Just curious, how much experience DO you have? There's a reason insurance companies have that requirement; just paying a fee and passing a test doesn't give them warm fuzzies.

None of my business of course. Feel free to say so. :thumbsup:
 

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For insurance, Id have a discussion with an insurance broker or 3 to get different opinions/quotes. A yearly chat can fine tweak that policy.

As for contracts, its something that should be tweaked every 6 months to a year. Never stop adding to it.
 

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Have to have a performance bond for a MHIC license, yes ? Where did you get that from. They should be able to write the rest of it ?

Side note, I was in the first 600 folks to get a MHIC license when it started. $1000 bond at that time...paid $100 per year for it....that was a different time.

Good luck with your business..keep checking in here.
 
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