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Hold Harmless

Discussion in 'Business Fundamentals' started by ffmedjoe, Feb 14, 2014.

  1. ffmedjoe

    ffmedjoe Junior Member
    from WI
    Messages: 29

    Next year I plan on expanding my business a small bit, maybe adding 25 or so more driveways. Right now i plow around 20 driveways. I currently don't have a contract and most of the people I plow for are friends family and other acquaintances. We have a "gentleman's" agreement right now. In order to keep costs down, i was going to put a "hold harmless" clause into my contract so I don't have to have a million dollar policy. I still have commercial insurance on my plow truck.
    Does anybody else do this or is this something that is going to set me up for a lawsuit?

    Thanks Guys!!
     
  2. Ben/Insurance

    Ben/Insurance Sponsor
    Messages: 156

    Joe, I think you will find that most of your customers will not sign a hold harmless agreement. Especially, commercial accounts. In fact, you will find that most commercial accounts will require you to sign a hold harmless agreement in their favor. Here's a scenario of a claim that recently happened to one of our clients. The snow contractor rented a bobcat to remove snow from driveways and accidently knocked down a post that was holding up a good portion of a large deck and house dormer. The dormer needed to be demolished along with the deck. That was a $106,000 GL claim. Doubtful if a hold harmless agreement would even hold up in court in that case. Even if it did, who would pay for the defense costs? Thankfully, the client had a good GL policy to cover it.
     
  3. ffmedjoe

    ffmedjoe Junior Member
    from WI
    Messages: 29

    Hey Ben,
    Thanks for your advice. I've been calling and emailing places to get a GL quote and either they don't offer it, progressive or insureon or they offer me quotes on my vehicles and my house (State Farm.) It looks like i'm going to have to jump through a lot of hoops to get this done.
     
  4. Ben/Insurance

    Ben/Insurance Sponsor
    Messages: 156

    Joe, just call a local independent insurance agent for help. Better if they have experience with contractor's insurance. They have complete access to the insurance marketplace that the State Farms and Allstates of the world don't have. Don't use a storefont insurance broker either. They typically charge fees that we (independent agents) do not. You can google "independent insurance agents in WI" to start.
    Good luck.
    Ben
     
  5. dodgeboy06

    dodgeboy06 Member
    Messages: 42

    ffmedjoe, I tried to pm you but it will not allow me to do so, where abouts in WI are you?
     
  6. ffmedjoe

    ffmedjoe Junior Member
    from WI
    Messages: 29

    SW WI.... Close to the dells