Starting new business, need insurance and llc info

[Roo]

How many of you guys carry "garage keepers insurance"? I didn't think I would need it, I don't see any reason I would need to move a customers car.

[Glas-Girl0512]

Hello, I am brand new to this forum. I have a turn key business in Western Ma. that my husband and I have been working for over 20 years. We are looking to retire, but not until we are sure our customers are well taken care of. Does anyone have comments on how we should go about selling our business?

[Brent Deines]

Welcome to the windshield repair forum Glas-girl. Have you had the business properly evaluated yet, or know what you have to have for it? In my opinion the first step is to get a professional evaluation as most of us tend to think our businesses are worth far more than what most people are willing to pay. Having an impartial evaluation helps take the emotion out of the sale, but although it is one of the most important steps to take, it is one that many small business owners don't do. Personally I won't even consider buying a business without a professional evaluation.

Once that step is done and you know you you want or need to sell the business for you can start marketing within the industry by posting ads in industry magazines, on the "For Sale" forum on this board, etc. There are also companies that specialize in finding the right buyer for your business and can keep things more confidential if that is of interest to you. They generally take a percentage of the sale, and often do their own evaluations so you can kill two birds with one stone.

If the business is reasonably priced and you can convince the new owner that all the accounts are not going to walk just because there is a new owner, you should not have too much trouble finding a buyer. One of the main things I look for when purchasing a business is if the average income generated over the past few years is sufficient to make the loan payments on the business, pay the operating expenses, and still put something in my pocket. I assume you owe nothing on the business so your net income is going to be much higher than the new owner who has a loan payment to make.

I have bought and sold business in the past, so feel free to give me a call if you want to discuss the matter in further detail.

[royalwindshield]

I have another possibly stupid question:
Do you contact RLI through a national number or do you have to go through a local agent?
I am looking to get rates from them on my liabilty insurance.
If anybody can help me on this I would be grateful
Hammer

[SGT]

I went through an underwritter for RLI in my area.

[Layne]

Read the fine print. The coverage is not that great. Actually it protects the third party administrators much more than you. You just need it to satisfy them.

[Brent Deines]

I have been reading that RLI is a good company for insurance. My biggest concern is making sure my business is not connected to my personal taxes. Thanks for the advice, it gives me a good idea towards what to do.
Have a great one
Hammer
BCFD

RLI does have very low rates, but be sure you get the type of coverage you need. There has been some debate on this board as to what is covered in the basic low cost liability policy offered by RLI and other companies. As has been pointed out by other members of this forum, you may need a garage keepers policy to cover damage to the vehicles in your care. I am not an insurance agent or an expert in such matters so I would advise that you talk to an independent agent in your area and explain your business model in great detail so he or she can help you find a policy that fits your needs. I have only had to file one claim in all the years I was in the field repairing windshields, but it ended up being an expensive one so I was glad I had the right kind of coverage.

What happened to me was that a drop of pit resin was left on the cowl of an older vehicle. The vehicle had not been properly maintained and was not clean at the time the repair was made, so I'm quite sure that had we not mentioned it to the customer he would have never noticed the tiny clear dot on the paint, but we did tell the customer. To make a long story short he ended up with a brand new paint job for the entire vehicle which was would have cost me thousands of dollars. My understanding is that garage keepers insurance is considerably more expensive, but if something were to happen to that new Mercedes that you are working on, whether your fault or not, you could be in a world of hurt if you don't have the right coverage.

I have no dog in this fight and always advocate for finding the best value in anything you purchase, including insurance for your business, but best value does not always translate to lowest cost so you need to be sure you are comparing apples to apples. RLI offers excellent rates on general liability policies if that is all you need, so please don't misconstrue this post to mean that I don't think they are a good company. Just be sure you ask the right questions, and make sure your policy covers the answers to those questions in writing. Here is a sampling of the questions that I would ask as a mobile windshield repair technician.

1) If I accidentally leave resin on the paint of the car and it cannot be removed, will my policy cover a complete paint job?
2) If I am working on a customer's car and a tree falls on it, will my policy cover the damage to the car?
3) If a third party plows into a vehicle that is in my care, will my policy cover the damage if the third party is uninsured?
4) If the windshield cracks out while I am working on it, will my policy cover a replacement?

Frankly a replacement windshield or very minor damage to a vehicle in your charge may be under your deductible so you should always have a few bucks set aside just in case, but if the damage gets into the thousands most of us cannot afford to pay for that out of our own pocket.

We work in an industry with an outstanding safety record, and rarely have I heard of a damage claim being made, but insurance is the for unexpected, not the expected, and small companies go out of business every year due to the fact that their companies not insured or are under insured. Please don't fudge on your homework in this area.

If anyone has had to file a claim through RLI, or any other insurance company for that matter, please tell us about your experience.

[Frank EU]

It is not my intention to promote any business, but for your LLC you could contact LegalZoom, their service is fast and affordable. You should pick the right State for your LLC -using Nevada or Delaware will add certain benefits to your LLC structure. http://www.legalzoom.com Your LLC will be formed the very same day.

[SGT]

Okay I have been a policy holder with RLI for years. When I was first introduced to RLI and not being an insurance professional it seemed mighty attractive for the price and I was up and runninig. Not knowing what questions I should be asking to ensure I would be adequately covered, I put my faith in my under writter to fit me with an RLI policy that would protect me based on my business. I know ignorance is no excuse but off to work I went thinking I was covered. Over the years I have asked questions and my under writter assured me I was covered. Even as recently as just a couple of days ago as it is time to renew my policy.

Thanks to Brent, some forum members and Brents insurance agent who I have had discussions with, I contacted RLI corp. offices armed with the pointed questions I needed to ask to get to the bottom of it. What I found out is that RLI is adequate coverage to satisfy the networks general liabilty requirements. There are other benefits to the policy but not where we as WSR technicians need it most. RLI has no provision for Care, Custody and Control. Basically if you damage a customers vehicle while you are working on it you are screwed. Knock on wood, I have never had a claim. That coverage comes through a garage keepers policy which will be more expensive and RLI does not offer. I know, you might be saying you posted that before but when you are trusting your agent it is hard to question it. Do I think my under writter intentionally misled me, no but I do think that they write policies for many companies and was not 100% sure of what he was saying.

So I thought I would share my experience. It does not matter how cheap the insurance is, if it does not protect you, it is basically the same as flushing your money down the toilet. I have flushed that toilet many times. You do not have to put your faith in what I say. If you have RLI or are thinking about it, call there corporate offices and ask to speak with a policy writter and see for yourself.

Now I am looking for complete coverage that will not only meet the network requirements but more importantly cover my business properly while working in the office or out on the road working on a customers car.

[Brent Deines]

Brian,

I would like to make it very clear to everyone reading this topic that I have no dog in this fight, and as far as I know neither do you. I also have nothing against RLI. I just think that it is very important to know what your insurance covers and what it does not, and I think every good insurance agent/company would agree with me on that. Does RLI offer a garage keepers policy?

I will allow your post to remain a sticky for a couple of weeks as I think it will give technicians some incentive to check their policies to make sure they have the right kind of insurance.

As you said, several other forum members already mentioned that some windshield repair technicians may be under insured, but several others argued that they had checked with their insurance company and were told that liability only was enough, so I'm glad that you were able to get some clarification on your policy.