Asked by NorthJerseyCopper · Oct 2
1st year in Local 24, so this is years away. idk if it's weird to ask this early. My long-term plan is to top out, get my master, and eventually run a small service shop in Bergen. Everyone says insurance is the thing that kills new shops. What kinds do you need, and roughly what does it cost? Ballpark is fine. Just planning.
Not too early. Ballparks are hard because it depends on trade, payroll, claims history and carrier, so get real quotes when you're close. The kinds you'll deal with: - General liability - Workers' comp once you have employees - Commercial auto for the truck - Tools and equipment coverage For a one-truck shop, expect the total to be one of your bigger fixed costs, not a rounding error. Talk to a broker who works with contractors, not your car insurance guy.
I'm in the electrical program at the vo-tech, and our teacher had us do a small-business project on this last spring. What surprised everyone was that the truck insurance alone came out higher than most people's rent. Not plumbing specific, but probably similar.
my foreman ran his own shop for 6 years before he came in... he says insurance and chasing payments are the two reasons he came back