Recommendations on commercial insurance

[dthrock]

Ok all you insurance people, Im looking to purchase a 5600 sq ft building. Part of it will be a bar/lounge about 40 person occupancy. The larger part will be a bookstore/coffee shop/cyber cafe. I talked to one agent here and he gave me a rough guess of $2k a month for insurance. Seems pretty damn high to me.

Does anyone know of a reputable company (yeah like there is such a thing in insurance companies) that you would recommend?

Dave

 

[Little6pack]

Not sure on commercial property the costs but have you seen the crazy lawsuits out there today?

I would say build it into the cost of the rental or keep shopping with other companies direct.. Going via an agent may cost you more so try to deal direct.

Also you could write into the lease that the bar/resturant operator has an insurance rider (PAID UP FRONT) before you sign a lease with the tennant.

Knowing this your own insurance company might give you a better rate.

 

[Chad Oliver]

I would think the expensive part is going to be the bar and if you don't have previous experience (new business). You need to have an agent w/ commercial insurance background to make sure there won't be any gaps or overlapping coverages. IMHO I don't think any building owner will pay for a bar's insurance ever.

We are talking about the general liability and work comp for $2k? Who is the carrier? What are the limits?

I am not licensed in the state of Texas, so I cannot provide you with accurate advice. Texas is very different from most other states with regards to the Dept of Insurance.

 

[Chad Oliver]

Your post is a bit confusing, are you purchasing the building only or the business with a freestanding building?

 

[Buicksx3]

Chad,

I'm taking Dave's post to mean that he's interested in the Lessor's Risk (building) only. Part of the problem is that the occupancy of the building is a tough class in both the bar/lounge and the coffee house/cyber cafe. Most commercial insurers (I work for one as both a commercial multi-line and excess casualty underwriter) evaluate the age and other physical charactertistics of the building like the year built, construction type, is it sprinklered, location and so on in addition to its occupancy to determine eligibility and pricing. Reason being, you can own the nicest building around, but if the tenant is a dynamite factory....

I also second your thoughts; Texas is a completely different animal state regulation-wise.

 

[dthrock]

Sorry I was unclear, I am going to be purchasing a free standing building that already has a bar in one side of it, but its not been open for 3 yrs. The other side I will be making into the bookstore (which I already own but will be moving to this bigger building) coffee shop/cyber cafe. I will have 2-3 employees running the bookstore/coffee shop and I will probably be running the bar myself. Presently I have 2 employees, one full time, one part time.


I need to write a business plan for the loan so need to know my costs and expenses etc. Hope that clears things up.

Dave