SUPPLEMENT INSURANCE COSTS

Ju1cedUp

Active member
doing a business plan, need to know how much these companies pay for insurance, on lets say.... a vitamin pack

any admin guys please chime in, any reps that can get me information would be VERY APPRECIATED!!

always
Ju1ced.
 
Probably cost you about $500 a month.
 
Just search for any local product liability insurance provider. MOst large companies offer it.
 
$500 per month would be extremely cheap for a policy of 1 million dollars and most insurance companies base the rate on how much you sell. So if you are a company doing more than 500k per year, costs go up as your theoretical risk exposure does.
 
custom said:
$500 per month would be extremely cheap for a policy of 1 million dollars and most insurance companies base the rate on how much you sell. So if you are a company doing more than 500k per year, costs go up as your theoretical risk exposure does.
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Unless he's jumping into instant mass-distribution, I gave him a reasonable figure to expect as a startup cost.
 
dsade said:
Unless he's jumping into instant mass-distribution, I gave him a reasonable figure to expect as a startup cost.
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yea we will not be selling 500k a year haha, not even close, more like 3,000 first year projected, being conservative obviously

by the third year projected about 14,000 bottles sold
 
Ju1cedUp said:
yea we will not be selling 500k a year haha, not even close, more like 3,000 first year projected, being conservative obviously

by the third year projected about 14,000 bottles sold
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I believe his 500k remark was referring to sales, not bottles sold.

Even at 3k bottles sold, you're looking at roughly $100k in sales, depending.

I'd say that $500/mo is still probably a bit of an underestimate, but who knows. Your best bet is to ask around, and really shop for the best coverage. Remember, maybe you'll pay $100 more per month, but if the policy doesn't leave loopholes and covers you better, it's worth it.

Always read fine print and if possible, consult a lawyer before purchasing something you 1. don't need, or 2. isn't going to cover you. :deal:
 
impulseoctane said:
I believe his 500k remark was referring to sales, not bottles sold.

Even at 3k bottles sold, you're looking at roughly $100k in sales, depending.

I'd say that $500/mo is still probably a bit of an underestimate, but who knows. Your best bet is to ask around, and really shop for the best coverage. Remember, maybe you'll pay $100 more per month, but if the policy doesn't leave loopholes and covers you better, it's worth it.

Always read fine print and if possible, consult a lawyer before purchasing something you 1. don't need, or 2. isn't going to cover you. :deal:
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so to be conservative on a business plan, not purchasing yet, would 750/month be a good projection??
 
Ju1cedUp said:
so to be conservative on a business plan, not purchasing yet, would 750/month be a good projection??
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I wouldn't feel comfortable giving you a concrete number, because, frankly, I don't know.

I would say that with sales around 100k, I would say 10-12% would go to insurance, so $750 would be a decent guestimate in my mind.
 
impulseoctane said:
I wouldn't feel comfortable giving you a concrete number, because, frankly, I don't know.

I would say that with sales around 100k, I would say 10-12% would go to insurance, so $750 would be a decent guestimate in my mind.
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thanks man, i was looking at a business plan for an ice cream company and their product liability was like 150 a month give or take some.. but i guess that can't be too comparable.
 
dsade said:
Probably cost you about $500 a month.
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a lot more than that, its a huge expense and is usually a certain dollar amount per thousand dollars sold, with a minimum base of $8-10k a year no matter how little you sell. so your cost per thousand goes down the more you sell. it usually ranges from 0.5-1.5% of sales (not profit) or $8-10 grand, whichever is higher, in this industry from the quotes I saw .
 
CONTROLLED LABS said:
a lot more than that, its a huge expense and is usually a certain dollar amount per thousand dollars sold, with a minimum base of $8-10k a year no matter how little you sell. so your cost per thousand goes down the more you sell. it usually ranges from 0.5-1.5% of sales (not profit) or $8-10 grand, whichever is higher, in this industry from the quotes I saw .
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My Thermogum policy begs to differ, but whatever.
 
CONTROLLED LABS said:
I am sure there are some out there like that, but check the fine print, there are many cheaper policies that will not give you the coverage you really want.
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Lawyer gave it the green light...I think it's more of a buyers market right now.

We had conflicting quotes all over the place for identical policies - but with new businesses dwindling, as mentioned it's a buyer's market.
 
How are any of you arguing with DSade? He could speak most closely than anyone here about the smaller startup supplement business.
 
DAdams91982 said:
How are any of you arguing with DSade? He could speak most closely than anyone here about the smaller startup supplement business.
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I would not have opened my mouth if I had not just negotiated all of this...and yes, ThermoGum is a very small startup with tons of potential.

I read OPs situation are pretty close to ours, and wanted to give him a realistic expectation.

It's already daunting enough balling out to open a business...the most realistic advice was appreciated by me when I was starting.
 
dsade said:
I would not have opened my mouth if I had not just negotiated all of this...and yes, ThermoGum is a very small startup with tons of potential.

I read OPs situation are pretty close to ours, and wanted to give him a realistic expectation.

It's already daunting enough balling out to open a business...the most realistic advice was appreciated by me when I was starting.
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in case you didn't check my last PM, send me ur last name and job position, if rep isn't descriptive enough, so i can cite you for this information
 
Ju1cedUp said:
doing a business plan, need to know how much these companies pay for insurance, on lets say.... a vitamin pack

any admin guys please chime in, any reps that can get me information would be VERY APPRECIATED!!

always
Ju1ced.
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well u need a min 1mil insurance or most people wont even sell your products. cost between 400 and 750/mo depending on what types of products you sell and how much you sell a year. They basically charge you more the more in gross sales because say you sell 100k worth product one year versus 1mil worth product, you have a higher chance of getting sued the more people who use your product. Ins. companies will charge you an amount based on your estimated gross sales then send an auditor out at renew time to make sure you didnt go over your allotted sales volume or you owe them more $.
 
dsade said:
Lawyer gave it the green light...I think it's more of a buyers market right now.

We had conflicting quotes all over the place for identical policies - but with new businesses dwindling, as mentioned it's a buyer's market.
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they may have thought it was a "food" business instead of a"dietary supplement" business, that could explain it?

what I mentioned is also for at least a 3 mil policy as stores (and some major sites) wont carry you without at least that much.
 
Chuck Diesel said:
well u need a min 1mil insurance or most people wont even sell your products. cost between 400 and 750/mo depending on what types of products you sell and how much you sell a year. They basically charge you more the more in gross sales because say you sell 100k worth product one year versus 1mil worth product, you have a higher chance of getting sued the more people who use your product. Ins. companies will charge you an amount based on your estimated gross sales then send an auditor out at renew time to make sure you didnt go over your allotted sales volume or you owe them more $.
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ok perfect, dsade said his plan was 1mil coverage and was between ur 400 and 750. we won't be making much our first year. maybe hit 100k by the third by our projections. but who knows really.
 
CONTROLLED LABS said:
they may have thought it was a "food" business instead of a"dietary supplement" business, that could explain it?

what I mentioned is also for at least a 3 mil policy as stores (and some major sites) wont carry you without at least that much.
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ok well we will have our own store and won't be on a website besides ours for the first 3 years, so thank you but ur advice is more for the future.
 
Ju1cedUp said:
ok well we will have our own store and won't be on a website besides ours for the first 3 years, so thank you but ur advice is more for the future.
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in that case, you could probably "leach" the new company on to your existing policy for the store, check with your insurance company
 
capnsavem said:
fanny packs and string cheese.
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well duh.. but the main focus will be,basically said, multi-vitamins with bugs.

bugs are a cheap, nutritional alternative for protein as many people know, just no one has had the interest of eating them.

Well no one will be able to notice how cheap the nutritional components are when they are swallowing these. So we will also be able to sell at lower prices then the competitors:)

very poorly constructed pitch, but i think you get the main idea haha.
 
Ju1cedUp said:
well duh.. but the main focus will be,basically said, multi-vitamins with bugs.

bugs are a cheap, nutritional alternative for protein as many people know, just no one has had the interest of eating them.

Well no one will be able to notice how cheap the nutritional components are when they are swallowing these. So we will also be able to sell at lower prices then the competitors:)

very poorly constructed pitch, but i think you get the main idea haha.
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I'm really hoping you're pulling my leg
 
dsade said:
Lawyer gave it the green light...I think it's more of a buyers market right now.

We had conflicting quotes all over the place for identical policies - but with new businesses dwindling, as mentioned it's a buyer's market.
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I actually had to turn down a deal for a large chain store because increasing to their liability minimums was simply unrealistic. Maybe I should revisit that.
 
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