Course: SLF 129 Legal Risk Management for The Small Business - Updated Sept 28

Unit 3 Assignment

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Unit 3 Assignment

Insurance Rates

For this assignment I want you to get some actual quotes for different types of business insurance.  You can find this information from an insurance representative or off the web.

There are two types of insurance sales.  First is an insurance company representative who works for the insurance company they represent such as State Farm.  These individuals work out of their own offices, and only sell insurance coverage from the company they represent.  The second type of insurance sales is an independent insurance representative.  Independent reps are brokers for many different insurance companies that may sell the same types of insurance.  They typically shop these insurance companies for the best policies for their clients.

The best place to start would be to contact your own insurance representative or a local insurance office.  You can also get quotes off insurance websites.  This is a real world assignment and will give you a glimpse of the process needed to obtain needed insurance coverage for your business.  The following case will provide enough information to obtain quotes for three different types of business insurance.

Case:

You own a coffee roasting business in the state that you live in.  You operate out of a commercially zoned building that you own.  The building is valued at 300K, machinery and fixtures at 150K, stock and all other content is 50K, for a combined value of $500,000 (all these assets are paid for).  You just recently incorporated to an S Corporation from a sole proprietor.  You currently have four employees, two work in the warehouse to roast, package and ship product, the second is an office employee, and the third is an outside salesman.  Their combined salaries are $125,000 and you take a salary of $50,000. You have annual sales of 1.2 million.  You currently do not offer health insurance for your employees.

With this information you should be able to get quotes for the following types of insurance.  Please provide a summary of the rates you received.  Also provide a short reflection on the process of how you obtained this information.

1. Workman’s compensation insurance
2. General Commercial Liability insurance
3. Building and Personal Property insurance