Do you have any advice on small business insurance?

That's a great question, and it highlights a critical business need for a lighting design and installation company, especially with the high coverage limits you're seeking (which often requires a Commercial General Liability (CGL) policy plus a Commercial Umbrella policy).

While I can provide general information on insurance for your industry, please remember I am an AI and cannot provide specific quotes, recommendations, or serve as a substitute for a licensed insurance broker. The best advice will come from colleagues in your specific market.

Here is a breakdown of information based on your request, which you can use to start a conversation with your peers:

💡 Commercial Insurance for Lighting Design & Installation

For a company doing design and installation work, especially with limits between $\$2$ million and $\$5$ million, you will likely need the following key coverages:

Policy TypePurposeTypical LimitCommercial General Liability (CGL)Covers claims of bodily injury or property damage to a third party (e.g., a customer trips on your tools, or you accidentally damage a client's ceiling).Typically $\$1M$ per occurrence / $\$2M$ aggregateCommercial Umbrella / Excess LiabilityProvides additional protection above the limits of your CGL and other primary liability policies (like Commercial Auto or Employer's Liability), often required for larger contracts.This is what gets you to your $\$2M$ - $\$5M$ total coverage goal.Professional Liability (E&O)Covers financial losses resulting from alleged errors or omissions in your design or professional advice (e.g., faulty wiring in the design causes a fire, or you specify the wrong fixture).Highly recommended for design-build firms.Inland Marine (Installation Floater)Protects your materials, fixtures, tools, and equipment while they are in transit, stored off-site, or on a job site before installation.Varies based on equipment value.Workers' CompensationRequired by most states (including NY and CA) if you have employees; covers medical costs and lost wages for employee work-related injuries.State-mandated.

🏦 Companies and Premiums

Colleagues typically use a mix of national carriers and specialty insurers, often accessed through a commercial insurance broker.

Common Carriers for Commercial Contractors

Some of the major, highly-rated carriers that often underwrite commercial general liability policies for contractors and specialized trades (like lighting/electrical) include:

• The Hartford

• Progressive Commercial

• Travelers

• CNA

• Liberty Mutual

• Chubb (often for larger or more specialized risks)

What Affects Your Premium

Your premium for a $\$2M$ to $\$5M$ policy is highly variable, but key factors include:

• Coverage Limits & Deductibles: Higher limits (like $\$5M$) and lower deductibles mean higher premiums.

• Business Revenue & Payroll: Higher annual revenue and a larger payroll increase your risk exposure and thus your premium.

• Scope of Work: Firms doing high-voltage electrical work, high-rise exterior lighting, or high-end entertainment production may pay more than those focused on interior office retrofits.

• Location: Los Angeles, New York, and Miami are all high-cost-of-living areas, which typically drives up insurance costs due to higher potential claim settlements and state-specific regulatory requirements (especially in NY and CA).

• Claims History: A clean claims history results in a better rate.

Average Cost Note: Standard General Liability coverage (typically $\$1M/\$2M$ limits) for an electrical/lighting business might average around $\$1,300$ to $\$1,600$ annually, but adding a Commercial Umbrella to reach a $\$5$ million total limit could easily add several thousand dollars or more per year, depending on your risk profile.

🗣️ Talking Points for Your Colleagues

Here are the questions, refined for maximum benefit, to ask your colleagues in LA, NY, and Miami:

1. Commercial Insurance Companies Used

• "Which Commercial General Liability carriers or specialty brokers are you currently using, and do you feel they truly understand our specific risk profile (design, installation, and technology)?

• "Are you buying a standard CGL policy or a combined Business Owner's Policy (BOP)?"

• "Who is your Umbrella/Excess Liability carrier to meet the higher $\$2M$ to $\$5M$ requirements?"

2. Premiums and Reasonableness

• "For a similar coverage level (e.g., $\$5$ million aggregate), how do you benchmark the reasonableness of your annual premium? Is it under $\$5,000$ per year, or are you seeing rates closer to $\$8,000$ - $\$15,000$+?" (This helps bracket the cost for your industry/locations).

• "Have you found any carrier-specific endorsements (e.g., additional insured provisions, waiver of subrogation) that are particularly difficult or costly to obtain?"

3. Prior Claims Experience

• "If you've had a claim (property damage, bodily injury, or E&O), how was your experience with the carrier's claims handling and adjuster response?"

• "Did the process take longer than six months to resolve, and were there any unexpected deductibles or exclusions that limited your payout?"

By focusing your questions on these specific policy types and your high coverage limit, your colleagues can give you highly relevant and actionable advice across the three major markets.