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Insurance

Discussion in 'Business Fundamentals' started by avex, Jul 11, 2011.

  1. avex

    avex Junior Member
    Messages: 4

    Hiya,

    My name is John, I own AVEX. I have been plowing for about 4/5 years now. My insurance agent has told me that my insurance would cover snowplowing. I later learned that it does not. First of, why would my agent lie to me? Money obviously. Second, in Oklahoma we may only plow a week maybe two out of the whole year. Plow insurance is EXPENSIVE! But there really isn't a need to have plow insurance ALL YEAR. So, I am looking for suggestions in regards to insurance. I don't want to plow w/o coverage. It just takes ONE time and I am a had dad.

    Thanks for the help and guidance.

    John
     
  2. wizardsr

    wizardsr PlowSite.com Addict
    Messages: 1,557

    Insurance is not an area to cheap out on. If you cant recoup your costs, you're not charging enough. It's not clear from your post if you're talking about your auto or general liability, but you need both. You need commercial auto on the plow truck(s) as well as a general liability policy. As far as your insurance agent, many aren't familiar with commercial insurance, especially when it comes to plowing liability. So, it's not that he deliberately lied to you, but he should have checked with the underwriter before he told you either way rather than assuming. You can get sued year 'round for something that happened during 1 week in the winter, so you really should have general liability insurance all year. You could easily suspend your auto coverage during the summer months if the vehicle isn't being driven. If you were to cancel your general liability policy in the spring time, you'd be denied coverage the next fall, the insurance companies won't play ball that way.
     
    Last edited: Jul 11, 2011
  3. avex

    avex Junior Member
    Messages: 4

    I do have commercial liability on the trucks. I do use them year round. So plow insurance all year long. Well it really doesnt snow enough here to justify it then. We were getting 225/hr for trucks and 150/hr for tractors and skidders. But only plowed about 2 weeks out of the year. I hate doing something w/o insurance. It is WAY too risky. In oklahoma we may not see a flake of snow for 3 years in a row, even more. Then for a year or 2 BAM! Tons of snow. We usually get about 2 storms a year. Never know if it is going to be snow or ice. Plow insurance added to my current GL policy was quoted at 5 grand a year.
     
  4. goel

    goel PlowSite.com Addict
    Messages: 1,079

    Talk to a national company, not a local broker.

    If you have to, call the 800 number for them
     
  5. 100InchHammer

    100InchHammer Member
    Messages: 34

    My comm auto ins through progressive covers liability in the event I damage a car, house, rip off a gas meter and blow up a building, or run someone over etc... It is a full coverage policy for 500,000 that should cover any damage my truck will cause. The policy for 2 trucks is only $72/mo. I also have a 2 million dollar gen liabilty in the event of a silp and fall, etc... The gen policy I only keep on during the plow season but I may keep it year round for the mowing season too. You shouldn't need any other insurances.
     
  6. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Your truck insurance ,that is a commercial policy,correct? You GL: insurance should be kept in effect all year if your in business.
     
  7. csi.northcoast

    csi.northcoast Senior Member
    Messages: 320

    the way it was explained to me that you snow insurance as i call it should be a percentage of your overall revenue ie: if you make 20% of your gross your agent should put down 20 % snow plowing and 80% whatever else you do... try calling around there are many insurance co out there
     
  8. 100InchHammer

    100InchHammer Member
    Messages: 34

    Grandview, yes that is a comm truck policy. I think it's the area I live in, most small guys don't carry special insurances. I just talked to a friend who plows and mows and he only carries a comm truck policy for 300K. The 2 mil policy isn't that expensive for the protection we get, and some places require that you have both. I will take your advice and keep the GL active all year.

    SBG, that sounds good but being a small guy in the plow business, if I based my ins limits on my revenue I wouldn't have adequate coverage. For the comm auto, 500K is adequate, just adequate and the 2 mil GL is what I consider a minimum.

    Fortunately I have never had to use my ins and my intentions are to keep it that way. But we need to have it.
     
  9. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Check with your agent ,if your using your truck for business your personal truck insurance will not cover you.
     
  10. 100InchHammer

    100InchHammer Member
    Messages: 34

    Ditto on what Grandview said. You must have a comm policy, they put mine under a landscaping type of business, progressive doesn't list snow removal so my agent says they just use landscaping/grounds maintenance for the use.
     
  11. blogsdon

    blogsdon Member
    Messages: 63

    Just got a quote from Progressive they do have snow plowing insurance.

    Brian
     
  12. wizardsr

    wizardsr PlowSite.com Addict
    Messages: 1,557

    Why on earth does any one use Progressive? It's owned by a bunch of left wing radicals that want to control you (doubt me? just look at their "snap shot discount" thing). :dizzy: I have State Farm Mutual and they've been very good to me. Thumbs Up
     
  13. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Most newer cars already have a "blackbox" in them so they can deny your claim!
     
  14. ppandr

    ppandr Senior Member
    Messages: 619

    We shop our insurance every year a renewal and we pay $2300 additional to our GL. We have Pearless. It is a flat rate that covers commercial and resi's but not public roads. No one has ever asked how much we do.
     
  15. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    That's who I use.
     
  16. 100InchHammer

    100InchHammer Member
    Messages: 34

    I'll check them out
     
    Last edited: Aug 19, 2011