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Insurance.....am I missing something here?

Discussion in 'Business Fundamentals' started by beanz27, Oct 15, 2013.

  1. beanz27

    beanz27 Senior Member
    Messages: 984

    Ok, so for the last month, I've been checking all the insurance companies I can think of. None of them offer a 6 month policy. I have absolutely NO need for commercial plowing insurance in the summer, or commercial liability at all in the summer, all I do is plow, and it's used for mainly personal use in the summer. Occasional farm stuff but nothing requiring or justifying paying for commercial insurance.

    Is there any companies that actually offer a 6 month policy, or am I just screwed? I thought of taking the 12 month policy and cancelling it in the spring, but then I'm sure rates will go up or down payment. As it is I've gotten quotes of 500-800 down, and 300-478 a month after that, FOR ONE TRUCK.

    Any tips on insurance? I don't want to run without it at all if I'm doing more then a few friends, but I can't justify spending 2500 for insurance that I have NO use for.

    Thanks for any and all help in advance guys.
  2. Wendia

    Wendia Inactive
    Messages: 15

    If your vehicles are stored during the off-season, consider keeping only your Comprehensive insurance during that time. This will not only protect your vehicles while in storage, but will also eliminate gaps in coverage that can lead to higher premiums.
  3. Ben/Insurance

    Ben/Insurance Sponsor
    Messages: 153

    I'm not clear if you are talking about truck insurance or some other form. We only write 12 month policies here in NY. If you cancel prior to the expiration of the policy, I doubt your agent will be willing to write the new insurance (we have to return unearned commission to the carriers so we lose money). It's the same premise dealing with a captive (Allstate/State Farm) or a direct (Geico). You should discuss options that are available to reduce the premium during your down time with your agent.
  4. Wendia

    Wendia Inactive
    Messages: 15

    Hi Ben - can't he reclassify to a less expensive classification such as clerical in the non plowing months since he is basically just running his office? Or is that just for WC?
  5. Ben/Insurance

    Ben/Insurance Sponsor
    Messages: 153

    He does not say what type of insurance he is referring to. Good luck getting a carrier to reclassify a policy mid term anyway...especially WC which is a tough line of business to begin with here on LI. I have found in my 27 years experience, the less attention from an underwriter we draw to an account the better off the client is....
  6. Wendia

    Wendia Inactive
    Messages: 15

    A guy I used to do bookkeeping for plows in the winter and pours concrete the rest of the year. We intermingled classifications every year. It's not too difficult to convince an underwriter that you weren't doing any plowing in July :)
  7. Ben/Insurance

    Ben/Insurance Sponsor
    Messages: 153

    That is a payroll/classification issue that should be done either upon first writing the policy, at renewal time, or waiting for audit time at policy expiration...not mid term. I am talking about GL/Umbrella/WC here.
  8. Wendia

    Wendia Inactive
    Messages: 15

    Payroll classifications for workers comp yes - but frankly insurance is like voodoo to me. Your the pro so bean should defer to you. Thanks!!
  9. fartbox333

    fartbox333 Member
    Messages: 40

    What kind of insurance do you guys require from your subs/owner operators?
  10. Mitragorz

    Mitragorz Senior Member
    Messages: 166

    A few days ago, Geico quoted me a 4-month policy.

    My State Farm agent said they only do 12-month policies, but that I could cancel after the winter and just get a new policy before the following winter, with no problem at all... But that's because I already have vehicles insured through them. Or, If I don't want to risk getting my license suspended (for having a registered truck with no insurance, even if it's parked), I could put the truck into "storage" which would drop my premiums about 80% (I forget what exactly she called that type of policy).
  11. AEI

    AEI Member
    from IL
    Messages: 45

    just use H&R insurance. Hit&Run ........ jk.... i have State Farm here in IL and while i have multiple policy on both auto, business and home..... my agent writes a plowing specfic rider to the vehicle im using to plow with. I dont have any deposits up front either. its specfic to the months that I plow only.