May 21, 2015

Who can get Tiny Business Insurance

What types of companies fit into the tiny business insurance classification?

In a previous post, I acknowledged that the term Tiny Business Insurance is one that I created to market a type of insurance that I saw in the market that I believed was undeserved by the title of small business insurance.

Characteristics of a Tiny Business:

-Home Based Business as opposed to a work from home business

-Sole employee/owner, potentially two owners, but typically no employees

-Revenue below about $100K

-May or may not even be profitable.  Many people incorrectly believe that you need to be profitable to buy or need business insurance.

-Either not incorporated or newly incorporated.

-An easily identifiable business classification code.  The longer your elevator pitch needed to explain exactly what you do, the less likely you are to fit into an easy classification.

-A relatively low risk business classification code.  Some of the more dangerous risks are easy to understand, such as pyrotechnic adviser.  Although many semi high risk codes are not.

-Basic Insurance needs

-First Business insurance policy (for this company.)

If you and your business meet these qualifications, you may be a good candidate.   Getting Tiny Business Insurance may be a rather simple process.   You will not know for certain until you speak with a few insurance independent agents or independent brokers.

What are some good candidates:

Architects

Bookkeeper

Business Consultants

Concessionaire and Vendors

Engineers

Event Planners

Graphic Designers

Interior Designers

Career Coaches (Life Coach)

Janitors

Lawn Care

Management Consultants

Marketing Consultants

Massage Therapists

Office Product

Personal Trainers

Property Managers

Psychologists

Real Estate Agents

Specialty Training School

Tax Prep

Technology Professionals

Therapists

Web Designers

Yoga Teachers

As with all things on the internet, this is a partial list that requires lots of underwriting and is subject to change without notice.

Where to start:

Since this is most often your first business insurance policy, it is easy to see why people are a bit confused.  When starting off with insurance for the first time, I always start off with the most logical insurance type needed.   Sounds simple, although its not really.  What is logical from an insurance standpoint, may not be logical from a business owners standpoint.  This is where the Insurance Broker comes into play.

How much does Tiny Business Insurance Cost?:

If you and your California business fit into one of these micro business insurance policies it likely will cost very little money at all.   Less than $800 per year, probably.  Less than $400 per year, sometimes.  It really depends.  I know that it is a trite phrase, but the quote is free.  How can it hurt to ask?

Keep in mind that I have found that most insurance agents and brokers do not seem to either be aware or want to sell these types of insurance options to these micro businesses (tiny businesses).

Who Can Get Tiny Business Insurance?

The simple answer is that most simple California businesses can get a Tiny Business policy.

Get a Tiny Business Insurance Quote

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Scott W Johnson – 0h11625

Marindependent Insurance Services LLC – 0k10734

Independent Insurance in Northern California