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Insurance for subbing

Discussion in 'Introduce Yourself to the Community' started by starfiresx, Nov 26, 2005.

  1. starfiresx

    starfiresx Member
    Messages: 30

    Hello All, New here. I have been reading here for a little over a week now. great place for good info. but the one thing I am needing to know is about insurance as a sub contractor.

    I have plowed for companies in the past with there trucks. but last year bought my own truck and did some resi stuff. this year I am looking into getting some more work in the Macomb area (near Detroit Michigan).

    so back to my ?. do I need to have my own insurance or will I fall under the company that I am plowing for? I am not looking to get full year insurance policy as in the summer I drive a cement truck.

    thanks in advance

    Joe
     
  2. schuitb

    schuitb Member
    Messages: 95

    you should still have your own insurance policy in place regardless of what the person you sub off of has.. That way you know the premium is paid and coverage is in effect. Also you won't be able to get a "4" month policy anyway.. and if you could it would cost the same as one year.. insurance co's know you don't plow in the summer so the premium is prorated.. examle. if you paid in full for a policy in May and cancelled in October you would likely get all your money back less their min. retained premium(paper costs and such). but if you started in October and cancelled in March.. you would not get hardley any money back... Paying monthly all year is just a way to spread 4 months coverage in 12 payments... Plus if it did happen to have a freak storm in April or May you still have the coverage... Do a search for insurance companies in the search bar on this site as alot of people have already shopped around and posted who their with and that they were the cheapest they found.
    Hope that helps..:waving:
     
  3. fourspeedfish

    fourspeedfish Member
    Messages: 70

    bump
    looking into subbin myself, and also would like to know if most co require that subs carry gl ins. if thats the case, i will be working just to pay the ins bill...i will stay in bed for that thanks
     
  4. karl klein

    karl klein Senior Member
    Messages: 557

    i think it really depends on who the contractor is. i have checked with my insurance company on this many times all they require is my subs carry commercial vehicle liabilty. all of my subs are required tyo fax a copy to me and i fax a copy to my insurance provider that keeps them happy. the commercial vehicle liabilty protects you if you hit something. the general liabilty protects you gfrom slip and fall and concrete damage kind of clames
     
  5. fourspeedfish

    fourspeedfish Member
    Messages: 70

    thanks for the reply...i dont and dont want to put com plates on my truck, since this is not a business for me but rather a side job, with no personal accounts,(dont want personal accounts) just like working for a employer?...

    dont mean to take the post over joe, but i think we are looking for the same type of info
     
  6. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    Doesn't really matter - if you accept any type of compensation (beer, money etc) you are a commercial entity (business). Any payment (or payment in kind called "bartering") is to be declared income on you tax return. If you use your personnal equipment, such as a truck, in employment your personal insurance is likely not in effect at that time.
     
  7. fourspeedfish

    fourspeedfish Member
    Messages: 70


    i do see your point...i will have to ask my ins if my truck would be covered or not
     
  8. flykelley

    flykelley 2000 Club Member
    Messages: 2,124

    Ok Guys
    Here in Michigan if you plow for money or goods, your regular truck ins will not cover you if you have a accident while you are plowing. I was sitting at a red light last Dec and was rear ended. My new salt spreader was wrecked pretty bad. The ins did pay for at after I raised some he!! about it. They then made me switch over to commercial truck ins for the winter only. It cost about a extra 50.00 a month. I start it right around thanksgiving and carry till april 1st. You also have to carry extra ins for the plow and salter so if it gets damged or someone steals it. I use Bill Smith at Total Ins co in Clarkston Mi 248 625-0410 Bill is a great guy to work with and has sold ins to several guys here on the site.

    Regards Mike
     
  9. fourspeedfish

    fourspeedfish Member
    Messages: 70

    thanks...i will check it out...this would be my first year with my truck and just trying to get everything figured out...time to get with some local co that needs help...seems like it would just be eaiser to get in their truck !
     
  10. starfiresx

    starfiresx Member
    Messages: 30

    commercial vehicle liabilty

    here in Michigan I don't think you would have to re-plate your truck because of the commercial vehicle insurance. is this right? I believe this would only be if you are carrying or towing more than 24,000 lbs.

    I called around today and found that commercial vehicle liability would only run me $50.00 more a year. $300,000 limit. but I need to change companies to do this. as I have state farm and they will not insure plowers. and to get the GL insurance it would $750 for the 6 months that plowing would occur. this is with a $300,000 limit.

    I will call Bill Smith at Total Ins co. and see what they cane give me.

    Joe
     
  11. flykelley

    flykelley 2000 Club Member
    Messages: 2,124

    Hi Joe
    You are right you will not have to replate your truck. You will also nedd 1 million in liablity coverage, that seem's to be the norm.

    Good Luck Mike
     
  12. PremierLand

    PremierLand PlowSite.com Addict
    from detroit
    Messages: 1,572

    I got a 1mil from total insurance for 835 for the plowing season only.
     
  13. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    Mark, something's wrong. That's still more than I pay for the whole year. Are you sure they're not selling you an annual policy and just calling it seasonal? Otherwise, your annual rate would be over $1600.
     
  14. PremierLand

    PremierLand PlowSite.com Addict
    from detroit
    Messages: 1,572

    im 100% its for the snow season only with a 1mil liability. Thats it, just liability. Maybe its because im younger and two people are listed on it?
     
  15. starfiresx

    starfiresx Member
    Messages: 30

    1 mil?

    hi guys. I talked with three agent yesterday and all three told me that $300,000 was good enough for doing residential work. I will not be doing any commercial work. so this is where you are coming up with the 1 mil liability?

    but I will call Bill Smith at Total Ins co in Clarkston and see what he has to say.

    thanks Joe
     
  16. flykelley

    flykelley 2000 Club Member
    Messages: 2,124

    Mark if you went with Bill it is for a whole year, my policy was written in Jan, so now every Jan it is up for renewal. I thought it was for the season only but it is a yearly policy. Mine cost just a little under 800.00 a year.

    Regards Mike
     
  17. PremierLand

    PremierLand PlowSite.com Addict
    from detroit
    Messages: 1,572

    I didnt go with Bill. I had my pops call for me when I was in school and bill wasnt in, and my dad reconized it was total insurance, and he uses total insurance for his rental prop's, so he just called his agent and got me that price.
     
  18. MisterIceMan

    MisterIceMan Junior Member
    Messages: 23

    You should at the very least talk to an insurance agent. Let us know what you do.

     
  19. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    Do you have General Liability for your cement business? You may be able to have snowplowing added to that policy if you're not hauling cement in the winter. That would help keep the premium down. Talk to your agent.
     
  20. starfiresx

    starfiresx Member
    Messages: 30

    Mick, No! I just drive the truck for a big Co. here in the area.

    get laid off every winter from driving.
    Joe