What is a New Venture? 

A New Venture is a person or person’s coming together to form a business for the first time.   

Why won’t some insurance companies quote a New Venture? 

Typically, the owner’s or principals in a successful business have extensive management and sales experience which assists in loss control oriented decision making.  According to Merriam-Webster dictionary, venture means: 1) an undertaking involving chance, risk, or danger.  2) A speculative business enterprise.  Naturally, insurance companies identify new ventures as higher risk than established, seasoned businesses.  Since New Ventures are new there is expectation that corners will be cut for the sake of profits and the general lack of business experience is an unmanaged risk. 

What is the best way to get a quote for a New Venture?

Tell the applicants story.  Provide the insurance company with a narrative and/or resume that details why the new business will be successful and should be considered for insurance.  What is the applicant’s prior management or sales experience?  What have the owners or principals been doing for the last 5 years?  Where have they been working prior to starting a new business?  How much capital will be invested in the business and what is the marketing plan for success?