How much does insurance cost?

bigbavarian

Hello,

I have been remodeling houses for about 15 years now and everyone says that is my true calling. I am not ready to jump right into it because I do have a pretty good job as a project manager for a pretty decent company.

I was thinking about doing some work on the side on nights and weekends but can use some advice on a few questions...

1. What type of insurance should I get and how much does it typically cost?

2. What do you all typically use to estimate your jobs?

3. What other tips do you have for someone in my position?

Thank you for your time,

Stephen

Ron6519

Insurance cost vary by region, size of company, what the company does, etc...Roofers pay much more then cabinet makers. Companies that also do roofing will pay more then those who don't.
Best case would be to contact local commercial insurance agents and work out the details. My homeowners insurance didn't carry any business policies.
Depending on the legal status of your company(sole proprietor, S corp,
C corp,etc) and if you have employees. Some states will require Workmans Comp, some don't. As an example, in NY state, an S corp with no employees and only two officers can be exempt from Workman's Comp insurance.
Try going on the Contractors forum for other examples, or contact an agent in your town who deals in business insurance.
Ron

majakdragon

Licensing would be the first priority. Florida now requires a business owner to also pass an administrative test as well as the trade they wish to do. Too many businesses were failing due to no office skills. Insurance would depend on your area and the type work you are doing. You would also need to be bonded for any damages caused (even theft) in a home you were working in. For bidding a job, you need to figure your actual costs, including the use of your vehicle, plus what kind of profit you want to make and still be competitive. If you jave employees, you need to add in the cost of their wages and insurance such as Workmans Comp. Doing work at night and weekends will put you in a "not so competitive" position since most people don't want this time tied up. Good luck with your endeavor.

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bigbavarian

Thank you for the information. It looks liek I have some additional work to do.

angus242

Stephen,

I encourage you to visit the sister site:
http://www.contractortalk.com/

There will be a ton of information there regarding your questions, especially in the business discussion threads.

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Angus

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AtlanticWBConst.

It varies state to state. Your actual required, or desired, covereage will dictate costs, as will the specific areas of work you do. So there is no straight answer that can be given, since the numbers are all over the "board".

Truth be told: Experience.

As stated already, get right over to Contractor Talk and start reading. You will learn a wealth of valuable and experienced information, and find many of the answers to your questions.

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