Small business public liability insurance

[weg]

20 yo son is starting a business very soon. He has tested the market and with moderate marketing (facebook, flyers, adverts in shopping centers, gumtree, word of mouth) both of us feel confident he could get 10 hours work a month, for a profit of about $600 to $1000, once it's up and running.

He has no intentions of building it up too much as #1 it's not exactly a flooded market but it is competitive (he's undercutting and using cheaper products for the cheap end of the market - this service tends to be a little expensive and people will do without instead) which means it would probably only ever be a part time venture, #2 only wants it to be extra money as he has other plans and a whole heap of other things taking up his time.

What I want to know is does anyone have recommendations for insurance for the VERY small business - businesses that people usually work for cash.

With what he'll make he doesn't really want to be paying too much, and so he shouldn't because it's only a few hours work (although his equipment will be used by others on private property).

He is applying for an ABN next week. Anything else he should consider? He will have no employees. He will be using proper invoices and some of his customer may be organizations/other businesses who ?may require ?QA?? warning/safety instructions (will issue these and ensure equipment is safe and in good order).

 

[DaveM]

Probably just your usual mainstream insurers eg nrma, aami, allianz etc

Unless its something special then pretty straight forward

 

[weg]

Probably just your usual mainstream insurers eg nrma, aami, allianz etc

Unless its something special then pretty straight forward

But would insurance be cheaper for the small part time business? That's what I wondered?

Husband pays public liability, and his is quite expensive. It would hardly be worth for my son to take out if it was like his.

He'll have to check this out himself obviously, but thought someone here with a small business might have an idea of figures.

 

[moyjos]

Have a chat to a broker. Or go online an have a look around to get a ballpark figure.

http://www.quotesonline.com.au/business_insurance/

 

[Peter_Tersteeg]

Give insurance broker Richard White at White Insure a call 03 8790 5701.

A few years ago he got me a substantially better policy for less money than the ones I'd been using.

 

[DaveM]

I know AAMI have a hobby business policy which is for very small operations, and it is quite low cost.

Otherwise a broker should be able to help.

As a rough guide, we pay about $600pa for $10m in broadform liability, and $1000 pa for $2m professional indemnity.

But would insurance be cheaper for the small part time business? That's what I wondered?

Husband pays public liability, and his is quite expensive. It would hardly be worth for my son to take out if it was like his.

He'll have to check this out himself obviously, but thought someone here with a small business might have an idea of figures.

 

[Ace in the Hole]

Well done to your son starting a business at such a young age.
It's good that you're doing research for him to help out.
However, are you letting him do all the research and running around first before giving him your input and assistance?
My opinion is that, let him do all the work first, it's his business and responsibility after all.
Then, if you spot any potential problems he may not have covered, provide your oversight and advice.
Best way to make one responsible for their own actions in my opinion.
As a parent, it's obvious you want to help out, but sometimes helping is not helping in the long run.
Great sucess often needs failure first.

 

[weg]

It doesn't concern me helping out a little because I know he'll be doing 95% of it on his own accord anyway.

I like to show some interest and encouragement, and give suggestions that I would show any anyone, and like I do my husband for example with his business.

It isn't his first business either - he was buying goods off ebay and reselling them at 14yo, all on his own (used my credit card and account but would pay me straight back), and making around $300 to $350 per month then.

He did that one for about 3 to 4 years, but stopped because he doesn't mingle in that 'market' quite as much as he did then.