How much Insurance??

[Matt Murphy]

I am opening up an inspection company on my own in Illinois. I visited an insurance agent to get a quote on general liability. She told me I should look at a $1,000,000 policy. That seemed a bit high to me, but I thought I would ask here and find out with is truely necessary. Also anyone know the best way to go about creating an LLC???

Matt Murphy
Murphy Home Inspections

[Gary L. Porter]

Matt what state are you in.

[Michael R. Boyett]

From his accent I'm guessing Illinois

[Larry D. Kage]

Originally Posted by mboyett

From his accent I'm guessing Illinois

I see the same...


Matt, I want only enough liability insurance to cover me in the event I need it and no more. Take your best guess. 1 Mil is not out of line but the cost for same may be...check around.

I had my attorney do the LLC.

[Jeff Orcas]

Matt,

General Liability covers a lot and $1 Million is reasonable. Lets say you do an inspection and in the process of re-assembling the furnace you nick the gas line. That night the house explodes and the occupants are burned. Will $1 million be enough? Or you are driving to a job and the ladder flies off your truck, goes through the window of a minivan injurying the occupants. Will $1 million be enough?

GL is inexpensive compared to E&O, get what you think you need to protect your assets.

Jeff

[Dennis McAuley]

Matt,
Consult with an attorney for your LLC. $1,000,000 may seem high for limits on insurance, but the cost difference is minimal, at least through my agent, who really takes care of me. GL is cheap also. I pay around 2600 for everything with a 2500 deductible. You can get lower deductible but the cost increases. Good idea for E&O and GL together as a package. My agent is Marla Davis, she can write in all 50 states, and her email is m.davis22@sbcglobal.net.

Setting up your LLC correctly is a big jump in minimizing monetary risk. Yeah you could be sued by anybody at any time, so get it done correctly. Trying to do it yourself and save a couple of bucks and getting it wrong will cost in the long run. Good luck!