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Insurance Rates for a Newbie......HOLY COW!!

Discussion in 'Introduce Yourself to the Community' started by bltp203, Oct 19, 2007.

  1. bltp203

    bltp203 Senior Member
    Messages: 484

    Finally decide to be a subcontractor on top of plowing my own properties. Give the insurance lady a call and she dropped the bomb today. $2100 for Commercial Auto Insurance (Progressive) and $1000 for half million of General Liability.

    I told her thats insane. She tells me that no one wants to write on someone who "just plows snow". Says that if I was a full blown lawn / snow company, then my rates would be lower (yes, I am considering it).

    I would have to plow 41 hours at $75 per hour to just pay the insurance!!!!!!!

    Now I see why so many people who want to be legitimate get discouraged so easily and why you guys can't stand the lowballers with no insurance.
     
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    As they say shop around. Find an insurance broker who can check other places.
     
  3. BladeScapes

    BladeScapes Junior Member
    Messages: 12

    That sounds way high. I pay $780 a year for my 1 million dollar insurance General Liability policy, but yea it's a full blown lawn/snow company.
     
  4. ondagawood

    ondagawood Senior Member
    Messages: 128

    I'm new to this also - part-time but I added more ins. (100K) on top of what I have - it changed my rate by $32 for 6 months. Do you (we) need 1 million $ ? What on earth are you (we) going to hit ? (damage) Maybe I shouldn't comment but I want to know whats going on out there. :waving:
     
  5. cet

    cet PlowSite Fanatic
    Messages: 7,202

    Your good until you hit the bus stop with 10 people standing at it. I think the million is more for slip and falls then hitting something. Our minimum is 2 million and they might raise it to 5. I pay 3% of my gross. There is a minimum but I am way past that.
     
  6. bribrius

    bribrius PlowSite.com Addict
    Messages: 1,609


    hey. thats what they quoted me last month. and the quote says "landscaping and snowplowing". i dont landscape either.

    although mine was for two vehicles at five hundred k.

    no. i didnt take it. its on my list of arguements i need to have with myself. i dont think i was quite as surprised as you. i didnt think it was THAT high.
     
  7. bigearl

    bigearl Senior Member
    Messages: 393

    Try adding a stump grinder to your insuarnce policy. Chance of flying objects and all.
     
  8. ondagawood

    ondagawood Senior Member
    Messages: 128

    Flying objects :dizzy: LOL stick with pushing "fluff" (snow) payup
     
  9. bltp203

    bltp203 Senior Member
    Messages: 484

    So, here is my question.

    When does the insurance for the company I am contracting with kick in??????

    Also, where does the liability fall when I plow and someone else does the salting???? Who would get sued if there is a slip and fall???

    For those who hire subs......What insurance limits do you require? I agree a million may be too much for just pushing snow.
     
  10. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,574

    I agree 1 mill is a minimum.

    What happens when as a result of your plowing a busy business is shut down for a day or two?

    You hit the power or gas line, gas pumps etc,etc.

    You will be sued
    Lawyer$$$
    paying to fix what you hit$$ and
    pay the loss the business suffered because of your damage?

    Next, what if you hit a kid and cripple them?
    A broken hip, you pay for more than the emergency room.
    You will be sued Civilly too.
    What if you kill some, one a million will not even start to cover you.
    Exampel, The airlines pay 2.5 for every death.

    You have Ins for the worst case scenario, not for when you hit
    the No parking sign or the mailbox.
     
    Last edited: Oct 20, 2007
  11. Mick

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

    Really, it will depend on the area and local custom.
     
    Last edited: Oct 20, 2007
  12. bltp203

    bltp203 Senior Member
    Messages: 484

    I guess I will clarify my last......

    If I am hired by "ABC Plowing" as a subcontractor......What does ABC's insurance cover if I am carrying insurance as well?

    This may sound silly, but it seems like it give the lawyers two targets to shoot at.....when all you need is one.
     
  13. Snowpower

    Snowpower Senior Member
    Messages: 636

    Most commercial accounts require a minimum of 1 Million Liability insurance and also 250,000/500,000 liability policy on each vehicle.

    They will also want proof of workers compensation insurance if you have employees.

    As far as who is liable if you do have an occurance.....thats for your lawyer and insurance people to figure out. Thats what you pay them for.
     
  14. Snowpower

    Snowpower Senior Member
    Messages: 636


    Dont go crazy thinking about it. Just make sure you have your insurance in place. The rest is vague, by chance, and not really up to you other than being careful and trying to never have to file a claim or even call your agent for that matter.

    :)
     
  15. bltp203

    bltp203 Senior Member
    Messages: 484

    You are right..........I will shop around and in the end if it isn't worth it, then I will just not bother.
     
  16. Lynden-Jeff

    Lynden-Jeff PlowSite.com Addict
    Messages: 1,433

    sorry man but those are cheap. Currently I pay for 1 million liability 2400 a year and for plow insurance on the truck I pay $6000-6500. You have nothing to complain about lol
     
  17. stcroixjoe

    stcroixjoe Senior Member
    Messages: 263

    im a flooring sub contractor and i plow in the winter cause its slow and i pay around 500 for 2 million and they write my plowing as street cleaning
     
  18. MIDTOWNPC

    MIDTOWNPC PlowSite Veteran
    Messages: 4,452

    if you are only plowing as a sub for one person talk to that owner and see if you can be listed under his policy. that way all you might have to do is have your truck insurance listed that you have a plow, and the liability will be covered by your boss' blanket policy.

    that way your truck is covered if you are in an accident by your insurance
    your plow is also covered

    Your liability is covered by your boss and any damage you do ect is also covered.

    might be worth while taking a bit less per hour but less risk.
     
  19. mrbrickman

    mrbrickman Senior Member
    from montana
    Messages: 138

    its not just property damage thats gonna cost you 1 or 2 million, to my understanding it also covers defamation of character etc....i.e. you make a large mall look like a moron by not plowing the lots when its the week before christmas...theyll turn around and sue you for everything they can
     
  20. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,574


    I have a lot that I hold the contract for.
    I want to hire a sub"contractor". Lets call him/his companey Jacks Plowing
    I just became the general contractor and Jack's Plowing ( a LLC LLP or a CO etc etc)
    ... Became the sub"contractor"
    An as a businessman in the snow removel/plowing industry he The sub-contractor will need to carry His own INS.

    Read this link if they are your boss you are not a contractor or a sub-contractor you are an employee and you will be covered by His INS not yours.
    http://www.irs.gov/businesses/small/article/0,,id=99921,00.html


    Not defamation
    It would be for non-fesses, you did not do the job.
    Yes. they will file a lawsuite so fast your head will spin.
     
    Last edited: Oct 20, 2007