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I just moved into a subleased office space in Southern California and am required to carry general liability of at least $1M for our startup. This didn't seem like a big deal, but when I called my home insurance provider, AAA, they said there is a $500 policy minimum so even though the policy should only be about $50/yr, they pad it with $450 to make it hit the $500 minimum. They were also confused about what bucket to put an internet startup into, so I figured maybe they're just behind the times and I'd go somewhere else. However, I'm getting the same thing from Farmers, State Farm and the rest. It just seems like we're too small a fish for them to care. I guess I could throw in other coverages to hit the $500, but in principle, I'd rather deal with a company that's flexible and understands startups.

Does anyone have any good recommendations so I can just get this policy taken care of now for a reasonable price?

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I did not succeed in finding anyone who would write a policy for less than $500. TechInsurance seemed to be the best resource for finding someone who understood our business but their policies were expensive and required up-front rather than monthly payment. In the end I went with State Farm. – SWrobel Jun 3 '11 at 8:18

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I think you are going to hit annual policy minimums no matter where you go. It just isn't worth it for an insurance company to have all of the overhead for $50/year.

Errors and omissions insurance (aka prof. liab. ins.) can also be a useful thing to have so maybe you can get a deal if you get both.

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Another add-on you might try to bundle in is Directors & Officers Insurance. – Joe Jul 8 '11 at 4:37
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Try and locate a travelers agent. They have an excellent technology product that includes general liability and professional liability. General liability is important, but professional is often overlooked (unless it is a contract requirement) when it is probably a greater exposure.

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I just got one for $425 for a small space 164 SQ.F I'm not sure this is a reasonable rate because it's my first time. But it's the lower rate that I can find.

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Thanks Sue! That's about the best I'm finding too. – SWrobel May 27 '11 at 23:05
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We use techinsurance.com without issues.

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