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Discussion in 'Business Fundamentals' started by SteveR, Aug 16, 2011.

  1. SteveR

    SteveR Senior Member
    Messages: 252

    Can some of you give me some advice on insurance? I will start with my history with mine, I have been with them for about 3 years now and have had 1 vehicle claim for 9K and a liability claim for $6300 cause my salt shed somehow came down last winter while we were loading. My premium has run around 18-20k a year (includes workers comp).
    So I get a letter in the mail the other day that basically says that they will not renew me because I have these 2 claims and I do commercial plowing. Now I do understand I had claims but, they still made money off me. My previous history has had some vehicle claims but, who in this business hasn't had those. Not excessive tho I think 3 small ones since 01 when I formed my LLC. Next question, they wanted copies of my contracts, do any of you provide them to your insurance carriers??

  2. hoskm01

    hoskm01 Senior Member
    from AZ
    Messages: 475

    Insurance companies must gauge their risk, hence wanting to look at your contracts (how are they to know what you're signing up for?)

    If your salt shed (real estate/building) came down, why was that claimed on your auto policy? Maybe you have them through the same company, but if you could have kept claims on seperate policies, you could have been better off (at least not gotten cancelled.)

    Not knowing how many employees or vehicles you have, 18-20k per year could be an exorbitant or fantastic price.
  3. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    They are canceling you now before the big claim comes in and they don't want to be on the hook for it.
  4. SteveR

    SteveR Senior Member
    Messages: 252

    Yes the claims were on separate policies, one vehicle one liability. And I have 1.5 full time employees. My wife and I both work but don't take a paycheck so we don't count as employees. As far as contracts I write my own as a rule, I refuse to sign contracts that make me liable for things that I don't control. I see their wanting to see them as a way to see my income and judge my rates on that not my history. I have had only 1 liability claim ever since I have been in business.
  5. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I don't have workman's comp or employees ,but that premium seems pretty high,have you shopped around later?
  6. Camden

    Camden PlowSite Fanatic
    Messages: 6,594

    I just want to make sure I'm clear on this...you are paying 18 THOUSAND DOLLARS for general liability, workmans comp and commercial auto? And you only have 1 full-time employee? You are getting absolutely raked over the coals.

    I don't even pay 1/3 that amount. I've also had a couple claims but I've never been found to be at fault so maybe that's the difference.
  7. MatthewG

    MatthewG PlowSite.com Addict
    Messages: 1,390

    ^^^ What the heck is going on here? 18K? Ummmm......
  8. T-MAN

    T-MAN PlowSite.com Addict
    Messages: 1,363

    GL is based on your gross, and comp is based on payroll. If you are doing 500k with subs 18k is low. What do you have your 1.5 employees on comp for ? If you do roofing rates are huge for comp. Until your experience rating goes up, grab your ankles. Do you have a bunch of comp claims as well ? I dont see much of a difference showing your contracts versus's a yearly insurance audit . . .