4.What type of business insurance do I need?
Whether we are talking about the plumbers, electricians, auto mechanics, landscapers, painters, this lesson covers all facets of business.
The main reason you want insurance is to protect yourself, and the definition of insurance in a simple term, it's really nothing but “the transfer of liability.”

What does transfer of liability really mean?
That means, if my employees get into an accident, If my building burns down, if I hurt myself,
something happens, an auto accident, my insurance will take care of it.

Business Insurance:
How much do I need? And what kind do I need?
1. Workers compensation.
I recommend that you get workers comp the minute you hire your first employee because most people have individual health insurance or accident Insurance on themselves, especially
if you're married and you've got kids. But when you start getting employees, now you have to protect them.
I've got a payroll service and every week they would take out the taxes, it took out the workers comp, and they took out the next one:

2. General liability
Let's say you're working in a customer's house and you're dragging, you’re an electrician,
you're filling a wire, or you're an AC guy and you're pulling some flex, you accidentally step on it,
water line for instance, or step through the salient and cause major damage, water being the worst one - and it Floods the whole house, your general liability policy should cover that.
Always read the fine print. You want to know your deductible and what it covers and what it doesn't cover.

3. Commercial auto.
You want to deal with a reputable company in commercial auto. When you hire a new employee,
1. Run their Drivers License
2. Keep track of the people you're hiring (they will enter people's homes)
Also you as the owner, you want a minimum of $500,000 of liability on each policy. Make sure the policy covers each vehicle that you have. Also you want $100,000 accident - per person that's involved in the accident.

4. Inland Marine:
This insurance covers your tools that may be stolen, if you can't pull your trucks inside your shop and lock them up, or if you're in a nice secure, fenced-in area.
You have to keep the serial number, so each time I would buy a piece of equipment,
I would lay it on a table, I would take a picture of the piece of equipment,
and I'm going to take a picture of the serial number.
I'd put those together, staple them, and put them in a file.
And I'd actually number what truck it was supposed to be on, every once in a while I'd go out there and I’d make sure the guys didn't swap one tool for another around of their trucks.
I only got broken in to two times in 25 years.

5. Property insurance.
The property insurance really to a large degree if someone comes on your property and gets hurt,
it's kind of like another liability policy.

6. Umbrella policy: I would extremely impress upon all owners out there to get an umbrella policy. I would recommend at least two million dollars this day and time, that's so if you get sued,
they can't attack your company. Now your insurance company, your property insurance
and all your contents insurance will cover if it happens on the property, but this is if it happens off the property.

So if you get sued, your umbrella policy will kick in and they will get the attorneys to defend you,
because they don't want to write a check for two million dollars, I can promise you that. They'd rather spend a couple hundred thousand dollars on an attorney. But the biggest thing, it protects you from your personal assets getting attacked, your business assets, and personally.

7. Fire Insurance: That's the insurance that is for inside of your building that will protect your inventory, your computer's, your furniture.
You want to make sure that if you have a fire it's going to protect you with all your interior,
but also you need an insurance, and it usually is tied to the fire insurance, is if you’ve lost revenue.

8. Commercial property insurance:
For your building, for your land, it’s just to cover you in the event there's a catastrophic event.
Hurricanes, flooding, things like that.

The best thing I would recommend is that you stick to a good insurance company.

I would also recommend getting three quotes, take the policies on them side-by-side, compare apples to apples as they say, and make sure you're getting what you're paying for.

Thank you for watching,
David