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Insurance Problem

Discussion in 'Commercial Snow Removal' started by River Hill, Oct 28, 2002.

  1. River Hill

    River Hill Senior Member
    Messages: 102

    I currently have business Insurance policy that will cover snow plowing. I have my auto policy through another agency. My business agent is telling me I don't need commercial auto as this will be double coverage. My business policy will cover my plow, spreader and damage I may cause to vehilces or buldings while driving or plowing, and a number of other things. Most of you guys seem to have both policys. Why would you need commercial auto if you have commercial business?
     
  2. Mick

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

    Brians - For me (and I think in most other states) Commercial Vehicle insurance covers accidents caused directly by the vehicle and attached components (ie: plow) while operating the vehicle. General Liability insurance (ie: Business insurance) covers "completed operations" or claims from accidents after you leave the site (ie: slips and falls).

    My General Liability does not cover the vehicle at all so it sounds like you have something different. I think your agent might be telling you that Commercial Vehicle insurance would duplicate your regular auto insurance. In my case this would not be true as the regular vehicle insurance would not cover a vehicle I am using for plowing snow for money (hence "commercial vehicle"). In that case, I would be paying for a policy (regular auto insurance) that I could not use.
     
  3. Mick

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

    I sincerely wish my General Liability would cover my vehicles. I just last week paid my Commercial Vehicle policy for the next year. For what it cost for a 12 year old 1/2 ton Dodge and a 6 year old one ton Chevy I could have taken a big chunk out of cost of a new Fisher 9'2" V plow :realmad: .
     
  4. chtucker

    chtucker Senior Member
    Messages: 618

    I just went through this with my agent, and from my understanding Mick is correct. Commercial auto covers me while I am moving and General Liabilty covers me after I left.

    My commercial auto is $2300 a year on two superdutys, a 1976 Bronco and 1999 Jeep TJ. $500,000 liability. Actually went down from my regular auto insurance because I was able to take my wife off the policy (of course I give her permission to drive all the vehicles!) They are all actually titled in her name! I have mediocre credit after opening my brewery and she did 14k damage to the Jeep last year (rolled it, bent front axle).

    Liability insurance? I don't carry it. I own NOTHING (on purpose) and it is VERY unlikely to have a slip and fall claim in a place where there is snow on the ground from October through May 31.

    You NEED the commercial auto. I don't know of any general liability or regular auto insurance that will cover you if you take out the side of car with a plow while charging plowing.

    Oh and this is coming from a guy that pays over 25k in insurances a year (8k liquor liability, 3k workmens comp, 12k Health, 2k Auto, 2k property) I hate the insurance industry!!!!

    Howard
     
  5. Snoworks

    Snoworks Senior Member
    Messages: 466

    I just got off the phone with my insurance agent. He is a representative for State Farm. He has informed me that they will cover any plowing vehical under a personal insurance package. He stated that any vehical hit or damage to property will be covered by State Farm. With that said, all you would need to do is purchase a general liability policy, which State Farm does not handle.

    Keep in mind, at this point in time, to switch insurance carriers is a very tough thing to do. The industry has tightened their reigns considerably.

    CGB
     
  6. Mick

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

    Snoworks, I'm kind of confused by your post. You said State Farm would cover any damage done, then said what you needed was a General Liability policy which they don't sell. I just went to State Farm website and it doesn't look like they sell any type of commercial insurance. From their site: "Insurance is provided through personal auto policies (PAPs), which are contracts between you and your insurer, stating each party's rights and obligations." Make absolutely sure that he understands that this vehicle is being used in a commercial operation (plowing for money).

    My view of State Farm is biased, though. I had a very bad experience several years ago.
     
  7. Snoworks

    Snoworks Senior Member
    Messages: 466

    Mick - Asked him the question based on this thread. He stated that State Farm, and all State Farm Reps, will stand by the customer who ownes a plow, and uses it for buisness purposes. This coverage is based on a personal auto insurance, not buisness insurance. I have been with State Farm for 8 years, and he has said all along that he will cover all my vehicals for any plowing mishap. Never had a claim, so I did not see how well they stood behind there promise!

    Today, I canned State Farm for other reasons. Allstate will be my new provider, and yes, my new agent has stated that Allstate will cover any plowing mishap as well, under my personal auto coverage of course.

    I am going to use The Assurance Agency to handle my General Liability & inland marine vehicals. Their rep said if your personal automobile insurance carrier covers plowing, do not go elsewere, because you will not get a better price for same coverages. She said that there are only a couple of large insurance companies that still will cover plowing in these circumstances. All you got to due is find one of the couple.

    CGB

    CGB
     
  8. Mick

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

    Thanks, Snoworks. Sounds like it's going to work well for you. As long as you've checked it out, you should be ok.

    I think I may have to modify my advise regarding insurance - I've always advised getting Commercial Vehicle and General Liability. Maybe I need to say "usually" and "check with your agent". Learn something new everyday:drinkup: .
     
    Last edited: Oct 29, 2002
  9. Snoworks

    Snoworks Senior Member
    Messages: 466

    Mick - I even stressed your opinion(most logical) to both insurance company's I mentioned. They said there was no need. The only reason why I don't switch over to a full commercial policy is that I only use my vehicals for snowplowing. I have no use for the commercial policy for 7 months out of the year.

    CGB:D
     
  10. SCL

    SCL Senior Member
    Messages: 265

    I have a commercial vehicle policy through State Farm for my 1 ton and yes I've had the opportunity to file a claim. Paid for my salter and the property damage, but thats another story. :rolleyes: I too am shopping though as I'm not happy with their personal rates and the cost of insuring my larger truck was 33% higher than my current carrier.
     
  11. chtucker

    chtucker Senior Member
    Messages: 618

    I hate to be a naysayer... Does state farm use adjusters? If they do THE adjusters are the ones who make the decision about coverage and repairs.

    Just because you have a good relationship with your agent doesn't mean that if something catastrophic happens they will cover it.

    Worst case scenario you are plowing a lot and do thousands of dollars of damage to someone's car. The adjuster is going to want to know where and how it happend. Being the slimeballs that they are don't you think that the insurance company itseld will look for any way out of paying?

    Agents are sales/customer service people, in the insurance companies mind "biased", they don't make pay out decisions (maybe state farm?)

    Better if they say the will "do you a favor" and cover it, which it seems like the situation, I would run like hell. I HATE insurance companies, but don't give them reasons to claim fraud and not have your claim paid. You'll pay now or later, now is cheaper.

    Howard
     
  12. Snoworks

    Snoworks Senior Member
    Messages: 466

    I am going to get to the bottom of this. I will have a sit down with my new agent, also my cusin, and see what the scoop is. He took over his dads Allstate auto division. Heck, I will get both of them together and hash this out. I will let you know what I find out!

    CGB
     
  13. golfmanres

    golfmanres Senior Member
    Messages: 150

    state farm insurance for plowing and new business insurance what do i get?

    Please let me know sooner than later. I just recently transfered insurance agents with State farm. the first guy was too far away. But he did put in writing that i was covered for anything to the fullest max amount of damage and $ amount if anything happened while i plowed as long as i was not on a state highway plowing for the state of virginia. I told him my work is in huge parking lots and what happened if i hit a parked car, he told me that i would be covered it is just like hiting it without the plow on i would be covered either way.

    OK next question, i just started my business today filed for a business license and all that good stuff just wondering how i pay uncle sam later for taxes and what deductions i can make and also for insurance when you all say you are licensed and insured, the license i can guess is the business license and insurance is what? what kinda coverage should i ask for and also i am just starting out landscaping what do i need. please help me......
     
  14. Mick

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

    General Liability - Rider on your insurance for Landscaping.

    Commercial Vehicle - Perhaps your current vehicle insurance will provide this.