I recently had a conversation with a Knoxville, TN father who called our independent insurance agency. He was interested in commercial insurance for his lemonade stand. At first, I was taken back a little…and then I discovered the brilliance of his vision. The Lemonade stand is the truest form of entrepreneurship and the best model to teach your children how to learn business. As I discussed with him his vision to teach his sons, I decided to help out. Below is a break down of our discussion..hitting just a few of the insurance high points…or should we say interesting examples:
- Liability Coverage – This coverage is designed for property or bodily injury resulting from the lemonade stand’s negligence. So…trip and falls, or a lemon gets thrown out onto Gay Street by an employee; Lil’ Bobby comes rolling down the street on his skateboard hits the lemon and busts his face open on the pavement. Which also breaks his skateboard..
- Product Liability – Lemons tend to rot in the hot sun…
- Property Coverage – Building coverage for physical damage to the stand/office that you lease or own. They also would need coverage for the business contents of their stand: ice maker, blenders, cash register, and let’s not forget lemons..
- Business Income Insurance – What if the stand burns to the ground? Well the lemonade stand may lose some money from sales of lemonade. This coverage would help them replace revenue lost and pay expenses until the building was replaced, or another solution was found.
- Hired and Non-Owned – Suzy an employee is 16 she drives her Honda accord to the local farmers market to pick up lemons. She is in a car accident, this coverage offers auto liability coverage for the lemonade stand business; since Suzy was on the clock.
- Spoilage including Equipment Breakdown – If the food spoils as a result of the breakdown of equipment…
- Worker’s Compensation – What if an employee cuts a finger? Or lemons blind him for life?
- Employee Practices Liability (EPLI) – For these times: Wrongful Termination, Age Discrimination, Sexual Harassment….
- Data Breach Insurance – These guys were going big, they were saving up to purchase a credit card machine…PCI Compliance will be right around the corner, but all they had right now was carbon paper and the old slide for credit cards. What happens if someone steals those receipts?
- Employee Dishonesty/Theft – It happens everyday, coverage is cheap.