Trying to get insurance to cover my home based biz and I’m having trouble. is this common ?
Discussion Forum
Discussion Forum
Up Next
Video Shorts
Featured Story
The FHB Podcast crew takes a closer look at an interesting roof.
Highlights
"I have learned so much thanks to the searchable articles on the FHB website. I can confidently say that I expect to be a life-long subscriber." - M.K.
Replies
Depends what your business is, what your credit history is, what your work history and experience is, and lastly what you own--collateral wise.
Give us some more info and we might be of assistance?
You can see an explaination of my biz athttp://www.homedecsewing.com I have a client in the high rise condos, you know million dollar stuff , and to get in to install my treatments I need 1.County Occupational Business License, I've got that,2. Insurance Certificate (Unit specific) not sure what that means, and 3.Workers Compensation Certificate or Exemption Certificate which I fall under since me and my husband are the only employees.Spent 3 hours on hold with the Florida workers comp offices, only to have them give me a code # to call another only to be hung up on. Then I called my homeowners insurance co. and with the holidays they can't get back to me for a week or so. Called a few more for info and was told because I dont have a storefront it would not meet their criteria since my home is already covered ?Any way my husband also has a small biz painting, and removing wallpaper,and has insurance under miscellaneous repairs, so I figured we could use his if ever needed. But the rules for this project say my name must be on insurance.
Look into getting a workers comp and general liability policy that will cover you in the event that you ever do have to pay any subcontractors or hire employees. Since you will be excluding yourself and your husband and the exposure is minimal the cost should also be minimal and this would give you the certificates you need. Many find discounted workers comp insurance to be the primary if not only reason to be a member of your local Home Builders Association. For most companies the annual savings on the workers comp and general liability insurance more than offset the cost of membership.You think your bos wa a jerk at your last job? Just wait until you try working for yourself! (And working with your spouse? Sign up early for Marriage councelling, an ounce of prevention is worth a pound of divorce.------------------
"You cannot work hard enough to make up for a sloppy estimate."
Florida has so many requirements in order to do business that you would have to contact the DBPR to find out if you need a state or local license specific to what you want to do.
If you were simply an installer I would say just get an occupational license, commercial liability insurance and form a corporation so you and your husband can take advantage of the workers comp exemption allowed for up to 3 officers of the corporation.
Does your business sound like the following?
ID and IB - An "interior designer" designs, consults, studies, draws, and manages design construction contracts relating to nonstructural interior elements of a building or structure. A "nonstructural element" means an element which does not require structural bracing and which is something other than a load-bearing wall, load-bearing column, or other load-bearing element of a building or structure which is essential to the structural integrity of the building. "Interior design" includes, but is not limited to: reflected ceiling plans, space planning, furnishings, and the fabrication of nonstructural elements within and surrounding interior spaces of buildings. "Reflected ceiling plan" means a ceiling design plan which is laid out as if it were projected downward and which may include lighting and other elements. "Space planning" means the analysis, programming, or design of spacial requirements, including preliminary space layouts and final planning. "Interior design" specifically excludes the design of or the responsibility for architectural and engineering work, except for specification of fixtures and their location within interior spaces. IB is a business and ID is an individual.
If your business can be construed to be that of an interior designer then you could be in serious trouble without the REQUIRED state license, just as I would be without my General Contractor license.
Your husbands insurance would not be valid for your use unless both your businesses were under the same company umbrella - not a his and hers operation. Some home owner insurance companys offer more than just home owners insurance but you may have to look elsewhere. My homeowners is State Farm but I use Auto-Owners Insurance for my business. There is no requirement that I have a storefront.
Don't call - GO - to the local Workers Comp office and pick up the forms necessary to apply for the exemption. Looks like you'll need two sets of forms if both you and your husband have separate businesses.
BTW. a painter I know was shut down by a roving Workers Comp investigator because he did not have the required papers. Cost him $1,000 fine.
Susan ,
Hello , my wife and myself own a drapery / blind and window covering business and also have our own workroom at our home .We run under our own names on the business so no DBA is needed when you use your own names .
We are in Oregon and the laws and rules can be very different state to state .
I am a licensed contractor and also have a cabinet and furniture shop also on our property . My contractors license allows me to do like 3 specialty trades and I am legal doing window coverings installs as one of my specialties .
We also are required to have a city business license and both our names are on that , that satisfies our cities criteria and allows us to both work within the city limits . The liability insurance is the basic requirement by state limits and such , like 2 million in liability as stated in the state requirements as well as our bond .
If you don't have retail traffic at your home location there may be no requirement that you insure your premises . But the basic completed products and liability package and contractors license would be required .
In fact many insurance companies will not issue home owners insurance if there is a business on the same property , so be careful that you don't get yourselves canceled . Hopefully your husbands liability business insurance is through a different insurance company .
Perhaps your husband could change his classification to include general carpentry , at least that is the classification here in Oregon . Then he could legally do your installs . As long as you do not do any installation that requires affixing anything to the building then you can be there to dress out the treatments and tell your hubby where to do what , like a decorator .
To my knowledge when setting up free standing interior furnishings requires no license , it's like when the furniture store delivers and sets up a piece in your home , as long as they don't screw it to the wall their good to go .
Not sure who told you the insurance needs your name on it , but maybe it could have the business name that would include your and your husbands name as well .If not just run it through your husbands name as the business name ( Georges and Susan home sewing) if his policy read like that perhaps that would satisfy all concerned .
Good luck dusty
ps :nice work looks great
FL workmens comp exemption needs: Stock certificate if corporation or front page if LLC. They do not exempt business that is unincorporated
Statement or certificate saying you own 10% of business
Application for exemption
$50 money order
http://www.fldfs.com/WC/
I've done this 5 time under 3 sets of rules so I'm pretty sure these are the latest.
Sounds like you would not need any license except an occupational in FL which you get at the tax collectors office. Liability is a must with GC;s.
Is there any way to get you and hubby under one corp. with a DBA for each?
Edited 12/25/2007 6:20 pm ET by catfish
What trouble are you encountering?
Bob's next test date: 12/10/07
Do you install what you make?
If you do you need a business liability policy to cover you for damage to a customers property, damage if something falls off the wall, etc. Basically anything that could go wrong while you are on the customers property or something that your product or installation damages.
Now if you are installing these products you may also need a contractors license, I am not sure on what the criteria is for a Florida Contractor. Now if you need a contractors license you normally will also need a bond for the license and proof of liability insurance.
You need to talk to someone that specializes in business or contractors insurance, and not get a stupid answer that your homeowners insurance covers you since you are home based and don't have a store front. What kind of a answer is that. The majority of contractors are a small business and are home based. The liability insurance is not there to cover your home, workshop, tools, etc. it is there to cover you for damages to your customers. now if you do get a policy you can get additional coverage to cover your workplace and tools, and you.
Yes we do install what we make. Wall anchors L brackets ,12' upholstered cornice boards, drapes.I don't think that quailifies me as a contractor, ?
In Washington State it would. I will give you a few links to show you.
Seattle Curtain's website.
http://www.seattlecurtain.com/
Seattle Curtain's Contractor's License
https://fortress.wa.gov/lni/bbip/Detail.aspx?License=SEATTCM297KC
Wessco Blind's website.
http://www.wesscoblinds.com/
Wessco Blind's Contractor's License
https://fortress.wa.gov/lni/bbip/Detail.aspx?License=WESSCBI023N4
Both of these companies have installation services, so they need a contractors license.
you are so right. I had no idea. Do you know what I must do to get a specialty contractors license ? My business just grew in this direction a few years ago. I used to make wedding dresses and taught myself the window treatment business cause I have a natural talent for design, so I will do what I must to be legit.Thanks for the info, I feel so nieve.
Are you working WA of FL? (those links were WA) You need to check with the FL regulators.
This might be a good start: http://www.myflorida.com/dbpr/
Nice work! Hope biz takes off for you.View Image “Good work costs much more than poor imitation or factory product†– Charles GreeneCaliforniaRemodelingContractor.com
Susan ,
After thinking more , if your shop is attached to your house as opposed to a stand alone building this makes the insurance company nervous , fire and more exposure to the insured attached home .
The other point to clarify is the state may have a general classification like carpentry , as opposed to window coverings but the insurance company may use the class the state used or decide if we are more risk or less .
Because what we do is non structural and we are not involved with mold issues they could consider us at the minimal exposure .
By all means make sure you have insurance before installing . You never know when you can have a problem even with the simple things , as en example we were hanging a cornice box like 12' long and in the 2X6 framed walls they leave a blank over many headers over windows where the header is actually back about 2" from the drywall .
I could not find any studs where I needed them , so I poked my awl back and felt the header , stuck a 3" screw in my L bracket and it worked good , until the second one , I noticed the lights in the house flickered and thought I heard some funny buzzing sound in the wall . I backed the screw out and it was now a 2 3/4" long screw . I informed the homeowner and we went to the breaker box and sure enough the breaker had tripped .
An electrician came out and put a junction box in the wall just behind the cornice box , we really got lucky only $150 we just paid the bill and counted our blessings . The thing is a building can catch on fire or you can hit a water pipe or worse .
I really do belive your husbands insurance will almost be correct for what you do .
play it safe dusty