Fab shop owners

admin

For you guys that have fab shops,If you carry ins. were do you get your liability ins. from? If you don't mind me asking,how much  liability do you carry and how much is the premium, and what ins. company? For my lawn business I have to carry 2,000,000 liability on the business and each vehicle I use. The amount of liability I carry is required by some of the contracts that I have. That coverage runs around 7500.00 a year. I know a guy that repairs restaurant equipment that requires welding and polishing. He told me he is insured as appliance repair instead of welding repair. The thought being that when welding on the equipment it is repairing an appliance instead of welding an appliance.It keeps his ins. cost low, but I wonder if he ever had a claim would the ins. company cover it. You know how those vultures are when it comes to paying a claim.
Reply:Originally Posted by jimbo0261For you guys that have fab shops,If you carry ins. were do you get your liability ins. from? If you don't mind me asking,how much  liability do you carry and how much is the premium, and what ins. company? For my lawn business I have to carry 2,000,000 liability on the business and each vehicle I use. The amount of liability I carry is required by some of the contracts that I have. That coverage runs around 7500.00 a year. I know a guy that repairs restaurant equipment that requires welding and polishing. He told me he is insured as appliance repair instead of welding repair. The thought being that when welding on the equipment it is repairing an appliance instead of welding an appliance.It keeps his ins. cost low, but I wonder if he ever had a claim would the ins. company cover it. You know how those vultures are when it comes to paying a claim.
Reply:Idea.1. Incorporate your welding business. S-corp or LLC2. Create another corporation that owns all of the equipment3. Have your welding corporation lease all equipment from your equipment leasing corp.4. pay yourself as an employee of the corporation or, if you are the only one working, pay yourself with shareholder distributions. (do this with both companies)Advantage - Company has no assets and is a separate entity than you. If IT  gets sued - IT pays, not you.  You keep everything you own.Yay? - Nay?Any lawyer types want to comment??Last edited by TSOR; 01-16-2008 at 12:17 AM.
Reply:Originally Posted by TSORIdea.1. Incorporate your welding business. S-corp or LLC2. Create another corporation that owns all of the equipment3. Have your welding corporation lease all equipment from your equipment leasing corp.4. pay yourself as an employee of the corporation or, if you are the only one working, pay yourself with shareholder distributions. (do this with both companies)Advantage - Company has no assets and is a separate entity than you. If IT  gets sued - IT pays, not you.  You keep everything you own.Yay? - Nay?Any lawyer types want to comment??
Reply:I like the protection afforded from the incorporation idea, but... the cost of starting the business that way is alot higher (versus sole proprietorship or partnership), especially using two corporations to do it!MM350P/Python/Q300MM175/Q300DialarcHFHTP MIG200PowCon300SMHypertherm380ThermalArc185Purox oaF350CrewCab4x4LoadNGo utilitybedBobcat250XMT304/Optima/SpoolmaticSuitcase12RC/Q300Suitcase8RC/Q400Passport/Q300Smith op