1. Welcome to PlowSite. Notice a fresh look and new features? It’s now easier to share photos and videos, find popular topics fast, and enjoy expanded user profiles. If you have any questions, click HELP at the top or bottom of any page, or send an email to help@plowsite.com. We welcome your feedback.

    Dismiss Notice

5 Mil Gl policy for airport plowing

Discussion in 'Business Fundamentals' started by zlssefi, Nov 22, 2012.

  1. zlssefi

    zlssefi Senior Member
    Messages: 117

    Im looking to see who else here plows around airplanes on a regular basis. The reason I ask is that every year it gets increasingly tougher to find a company to cover mine.We have never had a claim other than one bogus slip and fall, but nothing around the airplanes. My agent has gone to 56 different companies and only two have come back with quotes. One quote was 45 grand which covers 4 payloaders, the better quote was 33 grand which covers the same. Last year i paid 25, 700 but that company got out of the commercial plowing insurance business. Id like to hear what companies you guys use and the approximate costs for coverage. I look forward to your replys. Thanks!
     
  2. RLM

    RLM PlowSite.com Addict
    Messages: 1,270

    What area are you in insurance tends to vary by state.
     
  3. zlssefi

    zlssefi Senior Member
    Messages: 117

    Connecticut
     
  4. xtreem3d

    xtreem3d PlowSite.com Addict
    Messages: 1,548

    I don't plow airports but have 5 Million in liability , required by one customer, I will have to look up the rate but I remember it went up SIGNIFICANTLY from my previous 2 Million coverage..( ie: thousands) . I don;t know how much yearly snow you guys get but if it's hit and miss , like here, most companies just cant justify the cost..maybe why you went to so many companies and maybe why prevoius guys got out?
    I am guessing for 25-33K to have 4 loaders that you don't get alot of snow
    Steve
     
  5. zlssefi

    zlssefi Senior Member
    Messages: 117

    insurance

    We run 4 loaders wether we get 3 inches or 20 inches in a storm. Last year we only had about 18 inches for the year, but the year before was 85 inches. The company gives a flat rate for insurance and it doesnt depend on how much snow we get. the 33 thousand quote was the cost of the insurance to me, not what we make on my accounts...
     
  6. xtreem3d

    xtreem3d PlowSite.com Addict
    Messages: 1,548

    My aplogoies..i completely misunderstood your question,
    Steve
     
  7. zlssefi

    zlssefi Senior Member
    Messages: 117

    no problem extreme, If you get a chance try to look up what your policy was worth. In my opinion 5 mil in coverage should cost the same no matter what were plowing around. Afterall if they have to pay out 5 million, its 5 million, doesnt matter what or who they are paying it to.
     
  8. xtreem3d

    xtreem3d PlowSite.com Addict
    Messages: 1,548

    I'll find the numbers....I agree 5 mil is 5 mil but could the ins companies be thinking an airport is riskier than a normal lot? Did they ever give a reason for declining you?
    Steve
     
  9. G.Landscape

    G.Landscape Senior Member
    from Ontario
    Messages: 850

    I think the mistake is telling them you plow an airport. I agree it shouldn't matter where you are plowing, commercial properties are commercial properties. If you were plowing the Rolls Royce Dealer you could do just as much damage.
     
  10. zlssefi

    zlssefi Senior Member
    Messages: 117

    The company that was carrying our insurance got out of the commercial snow plowing insurance game. Any company that plows snow was dropped as one of their insureds, it wasnt my company alone. I agree with the dont ask dont tell policy. I dont tell them I plow at an airport, however they ALWAYS seem to ask when they are quoting the coverages. If they ask and I dont tell that i plow around planes they just wont cover it if we have a claim, then theres no point in even having insurance.
     
  11. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,046

    We have 5 million and it's not a lot more then having 3 million. Your problem is the airport. You would also have to have your head checked not telling them it's an airport. with 4 loaders running there all you do is want to have an accident and find out your not covered. Airports are really expensive ot insure around here also.
     
  12. DAFFMOBILEWASH

    DAFFMOBILEWASH PlowSite.com Addict
    Messages: 1,598

    I asked for a quote to add areoplanes to my wash list from the insurance company. Needless to say I still have not washed a plane. 5 million is normal liability in these parts for any company. Plowing a areoport does sound like fun ....
     
  13. Ben/Insurance

    Ben/Insurance Sponsor
    Messages: 156

    You may want to take a slightly different approach. Ask you agent/broker to quote $2 mill on the first layer (instead of $ 1mill) and $3 mill on an "Excess Liability" policy instead of an "umbrella". It may be much less expensive and it's just a different way of getting your airport client the $5 mill in coverage they require.
    Also, if you are comfortable with participating in claims, ask your agent/broker to get a quote with a $5k "Self Insured Retention" or SIR. You pay the first $5K per claim and the carrier pays the rest. It may make a big difference in pricing. Good luck.