What if I cannot answer all the questions on the supplemental application because I don’t have any clients or payroll right now?
The insurance underwriter will need to understand your business plan. What are the types of contracts you focus on pursuing once you are licensed and insured. The insurance carrier does not want to hear that you are willing to take “any contract that comes along.” This is a red flag to the underwriter, and they will most likely decline to quote.
You will need to estimate guard hours billed and guard payroll by type of contract. The payroll and hours will need to be broken out by armed and unarmed. I would recommend you estimate low. You don’t want to pay for liability exposure you have yet to obtain.
Remember, these policies are not set in stone. If you start the policy with low estimates, you can always endorse the hours/payroll throughout the policy term to account for additional exposure.
Can you also provide workers compensation, commercial auto and/or umbrella coverage for my newly formed guard company?