I am in NH and in the process of getting my Level 1 Homestead licence. I contacted my home insurance provider today to inquire about options for insuring my business.
The quote he gave me is for a one million dollar policy for about $500 dollars a year. This seams like a lot to me since as a level one homestead I can not make more than $5000 a year. So the insurance would be 10% of my potential revenue.
So I was wondering if anyone is willing to share what they are spending on insurance and if anyone has any suggestions for companies. Maybe what I need is a smaller policy? I was expecting to pay $200-$300 max.
You may be able to get a rider on your homeowner's policy to cover your business, but you probably will need a separate general liability/product liability policy. Some insurers have minimum thresholds for premiums, so if a policy has a premium of $200 and the insurer's minimum threshold is $500, you will be charged $500.
We pay $425 from Wells Fargo (through Hartford), but other people have reported $200-300 premiums with State Farm. Try shopping around, your business policy does not have to use the same insurer as your homeowner's policy.
I am going through the same thing right now, I have a meeting with my insurance agent this Thursday. I will let you know what he quotes me!
im wondering if you are a renter- how does that play into obtaining insurance?
im ?? moving to NH but will be renting- the person at DOH i talked to said you are able to sell cakes even if you are renter.
so it would be under renters insurance?
I doubt there are riders available for renter's insurance policies to include coverage for a home business, you would probably need a separate business liability policy.
I don't know what the difference might be for renters. You should also look into the licensing requirements before you decide on a rental. For example, make sure you have either a dishwasher or a two basin sink. If there is a bathroom off the kitchen it has to have special hinges so that it closes automatically. There are a bunch of other things too.
As for my insurance, I am going to shop around for sure. I would love to find something a bit cheaper if possible.
The quote I received yesterday from Farmers Insurance was 394.00 a yr. (1 million in coverage) I also received an additional quote for $600.00 a yr from another company. So it is kind of all around the board, I am going to try one more company but I think you should shop around a little before making a decision. HTH
State Farm has the best rates, and they have a special policies just for home or small bakeries. $250/year, $1million coverage