Llc ~ Insurance Question

Business By kellertur Updated 2 Oct 2008 , 9:10pm by springlakecake

kellertur Posted 30 Sep 2008 , 6:27pm
post #1 of 14

I'd love to know how many of you are LLC ( or have that type of insurance ) ??? Would you mind explaining how one would go about aquiring such insurance?

thanks ~ icon_smile.gif

13 replies
JoAnnB Posted 30 Sep 2008 , 8:05pm
post #2 of 14

LLC is a limited liability corporation, it isn't really insurance.

Insurance can be purchased for your business (provided you have a LEGAL business) The Hancock company is a good one, and some homeowners will write a small business policy for home based licensed businesses.

indydebi Posted 30 Sep 2008 , 9:48pm
post #3 of 14

You acquire insurance thru your insurance agent. He will know what coverages you need and will connect you with the best company that provides that coverage.

kellertur Posted 1 Oct 2008 , 1:28am
post #4 of 14

thanks for responding ~ I am indeed legal. I came across these initials today when one of the stores that is going to sell some of my baked goods suggested I look into "LLC". (???) It's not required by this store, and I have no intention of ever become a huge business.

I did call my insurance company last week, and they suggested I call a "small, independent" company who works for a larger insurance company... yada yada yada, I became quite frustrated. icon_mad.gif
I think I will be calling Hancock next, and see what they can do.

thanks, and pass along any other info if you'd like. icon_smile.gif

indydebi Posted 1 Oct 2008 , 2:08am
post #5 of 14

Did you call your insurance company .... or your insurance agent? These are two different things. (Please don't be offended at the question .... I've experienced too many people who didn't know that, so if you're not one of those folks, I sincerely apologize!)

I worked for CIGNA insurance for 15 years in homeowner and auto. I am a licensed life insurance agent. Even with my background, I'd never call a company direct ... I'd work thru an agent.

kellertur Posted 1 Oct 2008 , 4:23am
post #6 of 14
Quote:
Originally Posted by indydebi

Did you call your insurance company .... or your insurance agent? These are two different things. (Please don't be offended at the question .... I've experienced too many people who didn't know that, so if you're not one of those folks, I sincerely apologize!)




I am not offended at all. However, I did call our home insurance company and was referred to our local agent and spoke to them. I explained the whole deal to them, who then stated they don't "do that type of underwriting" or even insure for home occupation regarding food processing. (GRRRRR!!!) (have I lost you yet?, because I'm getting confused writing this...)

Our agent asked "Why" we needed this insurance. Well, it seemed the moment I mentioned the words "food poisoning" as part of coverage, I could almost hear his car screeching away, eventhough he was on the phone. (It's pretty funny in hindsight.)

I'm not giving up yet...

indydebi Posted 1 Oct 2008 , 11:25am
post #7 of 14

FYI to anyone looking for coverage ... my agent wrote my coverage thru Illinois Casualty. This company specializes in restaurant and food service industries. So you might look for an agent that represents this company.

pastrylady Posted 1 Oct 2008 , 1:09pm
post #8 of 14
Quote:
Originally Posted by K2cakes

thanks for responding ~ I am indeed legal. I came across these initials today when one of the stores that is going to sell some of my baked goods suggested I look into "LLC". (???) It's not required by this store, and I have no intention of ever become a huge business.




Even if you don't intend to become a "huge business" there are reasons to becomes an "LLC". The most important one is to protect your personal assets from your business liability. I am a small operation (just me) and have my LLC registered in my name only. My husband is not on any of the paperwork. I keep all of my business and personal finances completely separate. As my accountant/attorney explained it to me, if someone gets sick from my cake and wants to sue me, they can't go after our personal assets because my husband is not part of the corporation.

I got my business insurance through the same agent who does our homeowners and car insurance.

Bethkay Posted 2 Oct 2008 , 12:33am
post #9 of 14

I have a policy that covers my business through The Hartford. The company that insures our home and car won't touch any business involving food, so my agent sent me to an Independent Agent who works with multiple companies. My policy is affordable, and provides sufficient coverage. icon_smile.gif

kellertur Posted 2 Oct 2008 , 6:25pm
post #10 of 14

UPDATE: (incase anyone is still watching this...)
I have found affordable insurance!!!! FINALLY ~ and I think I've also decided to apply for an LLC, but I still have to talk to my FIL to fully understand if this is the best route for us.

Thanks everyone for your help on this one!

Yankeegal ~ you ROCK!!! I should have asked another Maine baker first, before stressing about this... so thanks, thanks, thanks!!!

~ love this site ~ (ok, I'm done cheerleading now... dismounting from pyramid...) icon_rolleyes.gif

twooten173 Posted 2 Oct 2008 , 6:37pm
post #11 of 14

Good for you. Who did you go through?

cupcakemkr Posted 2 Oct 2008 , 6:42pm
post #12 of 14

K2cakes - an LLC (Limited Liability Company) will protect your personal finances if you get sued or go into debt which you cannot repay- other businesses or customers cannot go after your home/personal funds if your business is registered as an LLC with the state.

sarah0418 Posted 2 Oct 2008 , 6:59pm
post #13 of 14

You can apply the be a LLC through your state. My husband and I have recently started a business ( not cake related) and we decided to become an S-Corporation. (Small business corporation). If you are planning on filing taxes through the business, that may be something you want to look into. S-Corps get certain tax breaks from the gov. Also, at least in IL, it is cheaped to file to be a S-Corp than a LLC......a few hundred dollars difference. Hope this helps.

springlakecake Posted 2 Oct 2008 , 9:10pm
post #14 of 14

Good thread! I am in the process of forming my legal business. I just got my LLC paperwork back today! So for insurance...what exactly do I need to ask for? What is a "good" price for this? thanks...I don't mean to hijack.

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