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Insurance Quotes?

Discussion in 'Business Fundamentals' started by wilson17, Nov 22, 2012.

  1. wilson17

    wilson17 Junior Member
    Messages: 4

    I got a quote for $1,000,000 general liability without coverage for my truck (it is already insured). The quote was $1277 for 12 months. I am located in Ohio. I thought this sounded pretty steep, but I'm pretty new to the industry as far as plowing with my own business. What do you guys think about this quote? Is it reasonable? Or do you have any suggestions for any companies that could be cheaper? Thanks!
     
  2. jhenderson9196

    jhenderson9196 Senior Member
    Messages: 615

    Insurance rates have gone crazy for this industry. Too many people signing bad contracts. Considering your limits, it seems to be in the ball park. I was quoted a much higher rate for the same coverage. It's driving me out of commercial snow removal.
     
  3. Dogplow Dodge

    Dogplow Dodge PlowSite Veteran
    from NJ
    Messages: 3,005

    FWIW,

    That's the same $ i'm paying for a $2 million policy. The policy is through Western World Insurance group.

    Payable in full only, and fully earned..... meaning you cannot cancel it and expect a refund.
     
  4. rebert

    rebert Senior Member
    Messages: 103

    try glquote.com.. but that's about what i pay also
     
  5. wilson17

    wilson17 Junior Member
    Messages: 4

    Thanks guys! ... I am thinking of sub-contracting with a local company. But they are only offering $50-$60 an hour and with the questionable weather around here it's going to be hard to commit with such a high insurance rate. Last year, we didn't get enough snow to plow hardly any. This company I talked to said I wouldn't have had to plow any last year... Unless I can negotiate and get some more on the hour, I don't know that it's worth subcontracting with them?
     
  6. wilson17

    wilson17 Junior Member
    Messages: 4

    I'm going to give Western World Insurance Group a call.. I just quoted GLQuotes.com, $1070/year and that also includes lawn care the rest of the year, so that isn't too bad I guess since it includes that.. Let me know what you guys think. Thanks!
     
  7. fireside

    fireside Senior Member
    Messages: 661

    Not sure a about limits i hope 1 mill, but sounds about right in my state. The thing you need to be carefull of is gross revene limits they may charge you more if you go over during your adit
     
  8. Dogplow Dodge

    Dogplow Dodge PlowSite Veteran
    from NJ
    Messages: 3,005

    True, but I'm pretty sure that the gross revenue limit is around $28K annually before your rate is affected.. If you're doing that much plowing, I guess you can afford the rate to go up a little at your renewal.
     
  9. fireside

    fireside Senior Member
    Messages: 661

    28k seems to be the standard. Just find out what the costs are over that you may be shocked by some companies.I have ohio no additional costs or gross limits.
     
  10. jasonv

    jasonv PlowSite.com Addict
    from kannada
    Messages: 1,114

    Insurance and Law are two of the most destructive businesses in existence.

    In some cases, insurance and law are necessary, but the problem is in the frivolous use of the law to seek vastly excessive damages for things that should be handled man-to-man.

    For example, a very minor collision that cracks someone's plastic bumper and transfers a little bit of paint from that plastic bumper to a steel bumper. A fair market value for such a stamped plastic bumper in a free market competitive economy, would probably be about $10, painted, plus shipping, plus install, all together there is NO WAY that it is reasonable for the price of that to ever go over $100. The problem is with this insurance thing: why should anyone along the line from manufacturing to installation be satisfied with earning what it is worth to the CUSTOMER, when the INSURANCE will pay virtually unlimited $$ for it based on their agreement with the customer to cover all damages no matter what? Now you have dramatically increased prices for parts and labor (mostly parts) on anything covered by insurance. Insurance, of course, KNOWS how they affect prices, and so they all lawyer up and fight tooth and nail with everyone along the way in order to avoid paying anything ever. Of course, lawyers aren't free, that ultimately raises the prices even MORE.

    Similarly, you're plowing a lot, pretty tired since its been a long day, and you accidentally nick the bumper on someone's car sitting in that lot. Their insurance lawyers up and sues YOU, your insurance lawyers up and defends and counter sues the other car's owner AND insurance company, its costing everybody lots of money, then in the end, your insurance pays out $2500 to fix something, plus legal expenses, that realistically should cost under $100.... insurance rates go up, and you end up paying, $7500 (based on how much insurance you've paid over the years and how few insurance claims you've made).

    Now if you take the lawyers and the insurance OUT of the car business altogether, this is what would happen;

    1) Repair costs would near instantaneously return to a sane level, so that damage that is realistically worth $100 to repair, will actually COST $100 to repair.
    2) If you accidentally bump someone's bumper in a parking lot, you aren't afraid of financial ruin as a result of it, you do the responsible thing and talk to the owner, and if he's not around, you leave a note in the window with your number and an offer to cover the repairs.
    3) Everybody involved walks away from the situation happy, sh*t happens, but its settled and OVER, not dragged out for the next 1 to 5 years making you wake up in the middle of every night with cold sweat.
    4) VEHICLE QUALITY IMMEDIATELY IMPROVES. No more tinfoil cars, because they will no longer be profitable. Tinfoil cars are profitable for manufacturers because every simple minor bit of damage generates a HUGE amount of revenue in the form of overpriced parts. If you can't sell parts for more than what they're worth, then it isn't nearly as attractive to make those parts crappy.
     
  11. Ben/Insurance

    Ben/Insurance Sponsor
    Messages: 156

    That's a good price for GL coverage but make sure it covers your snow removal operations. Most policies contain a significant snow exclusion. The pricing is far more expensive here in NY.