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Anyone else have Insurance drop you?

Discussion in 'Business Fundamentals' started by Mick76, Sep 28, 2010.

  1. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

    No claims!!! I had GL insurance though MMG... 1 mill/2 mill ..... I told them when I first switched to them that I plowed. No problem they stated. Then I was researching doing some town plowing and very large lots 50ac + and wanted to know what my costs would be for the increased risked involved with these accounts. Red flag went up on their end and they started to ask me very specific questions on what I do now. Well once they found out (I never hid anything) they dropped me. Did I mention with all my years of plowing NO CLAIMS (knock on wood). Anyone esle have this happen?.... damn quotes I'm getting in now are at least 1K more for the same coverage that I was paying before!

    Damn, mods please move... I meant to write this in the commercial section.....
     
  2. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,382

    WOW, never had that happen before. I don't know what to tell ya. I would call them back and ask what the he!! happen.
     
  3. nekos

    nekos Senior Member
    Messages: 586

    Check out American Family insurance. I have had them for years.
     
  4. mullis56

    mullis56 Senior Member
    from Indiana
    Messages: 824

    We had first claim in 4 years and we are getting dropped already had priced out insurance for cheaper elsewhere and was going to drop them. It just sucks getting dropped, the feeling....in our case we paid over $25k in last year, so go to heck!
     
  5. THEGOLDPRO

    THEGOLDPRO PlowSite Veteran
    Messages: 3,136

    whats insurance?
     
  6. mullis56

    mullis56 Senior Member
    from Indiana
    Messages: 824

    Its legalized theft! LOL
     
  7. plowatnight

    plowatnight Senior Member
    from Mn
    Messages: 305

    Aren't you big rich guys self insured! ? ??
     
  8. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,046

    I can't beleive you only pay 25k, i pay more then that just for snow. We have been dropped before because of a pending claim which ended up to be nothing. I agree on the leagalized theft.
     
  9. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,046

    The thing your mom pays so you can drive her truck.
     
  10. forestfireguy

    forestfireguy PlowSite.com Addict
    Messages: 1,276

    INSURANCE is RIDICULOUS......

    In the last 5 years of commercial plowing my current employer has had 2 claims, one total BS and tossed out of court, the second settled for like 15K.

    Haven't had a claim in the 2 years I've been there but as we move the focus of our snow operation from smaller-mid sized properties into office parks and larger retail our rates are climbing. It's unreal how they justify it. We pay HUGE rates. Not sure what JD Dave pays up there in Canada, but I'd be really happy to only be paying 25K. there's not a section of our coverage thats 25K. UNREAL.
     
  11. Deershack

    Deershack Senior Member
    Messages: 797

    I haven't been dropped to date. However I would suggest that anyone who signs up with any broker or company that insists on a "indemnification" clause be sure they have run that contract through their ins agent. After being presented with a contract with such a clause in it, I ran it past my agent. The underwriter responded to the effect that if I sign the contract and there was a claim, I would be on my own. They refused to be part of any contract where I agreed to indemnify a second or third party, thereby making my ins responsible for any claims. They also advanced the opinion, although they were not stating a legal opinion, that such a requirement in a contract might well be illegal. They also suggested that my agreeing to such a indemnifying clause would be a "private" matter between me and the company(national).In other words, they are insuring me rather then some other entity.

    You can all do as you wish, but I would hope that all of you will do your homework as to how much risk you are willing to take by entering into such contracts.
     
  12. hairygary

    hairygary Senior Member
    Messages: 149

    With all the big accounts you have been talking about having or had in the past on these forums a 1/2 mil policy is on the light side and they might have picked up on that. If they checked on your certificate of insurances or additional insuredes and saw to much exposure for a lawsuit, then it's calculated risk to drop you.
     
  13. lawnlandscape

    lawnlandscape Senior Member
    Messages: 374

    some insurance companys just refuse to write insurance for some things. they do this because they either feel its to risky or because they have had a bad experience in the past in that area. when we started offering tree removal services we got droped by our insurance company. simply because the dont write insurance for tree removal. its not surprising that your finding the rates to be higher when your looking for a company thatinsures more rsky businesses.
     
  14. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157


    I don't have huge lots as most are under 6 ac..... 1 mill per occurance/ 2 mill ag is fine for these locations but yes I have been looking into larger lots and town plowing.... thats what sent up the red flag on their half. All in all its a good thing.... you can't grow without a few growing pains....
     
  15. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Mick76 ,what about an update.you know the minute you said you want to plow roads ,they figured if you hit something they will be out a few million and would never be able to recoup that from you by raising your rates.
     
  16. starc

    starc Senior Member
    Messages: 229

    Had ins for 15 years no claims ever. Called in once to see if I could get a better rate. Within a couple months I was dropped....haven't had ins since. It is incredibly stupid but I'm not playing that game anymore...
     
  17. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

    Grandview thanks for asking......The town plowing isn't going to be till MAYBE next year... still debating if I want to get into this.... we'll see how my bidding goes on the lots I'm interested in for this upcoming season.... My insurance carrier still dropped me and I had to obtain coverage from another carrier at a total cost of 50% more!... sucks but ya gotta have it..... My workers comp rates doubled also due to a "classifaction change"... what a bunch of crap.....

    Starc, yes you are a idiot for not having insurance and you'll be playing another possibily more costly game if someone slips and sues you for everything you own.... to each his own and for your families sake, I hope you see the light and "play the game"....Get insurance!
     
  18. chs1993

    chs1993 Senior Member
    Messages: 297

    You must be crazy for not having insurance! You must not do commercial work i hope!
     
  19. starc

    starc Senior Member
    Messages: 229

    Not doing any commercial right now. Was doing a large bingo hall (2 1/2 acre lot) un ins couple years back, not one problem.
     
    Last edited: Feb 22, 2011
  20. starc

    starc Senior Member
    Messages: 229

    There are too many loballers here now and it's hard to get any decent work anymore for what it should pay to make a living. I had a commercial job that after salt costs was paying upwards of 10g's a month. I was beat the following year by a guy that did it for 2500 salt in. The place was a disaster and business was way down but they kept him on because he was cheap. When we did it, it was always bare and black.