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Insurance?

Discussion in 'Business Fundamentals' started by WOODY367, Feb 27, 2008.

  1. WOODY367

    WOODY367 Senior Member
    from LI, NY
    Messages: 468

    A buddy and my self are thinking of going on our own next year. We both have worked for someone for almost 15 years. We want to do this right. What are most spending on insurance/liability for the season? Do we need to form a company? We have been thinking about this for awhile.and thinking next season is it.
     
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    The insurance part is easy. If your going to have a partnership you better work out those details first.
     
  3. WOODY367

    WOODY367 Senior Member
    from LI, NY
    Messages: 468

    Grandview, I would like to figure out what its going to cost us to even go on our own. See how much we have to spend before profit. I want to know to get started Not including maintenance and anything else.I might even do this on my own.
     
  4. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Find yourself an insurance broker. If you go to a named insurance company they my try and sell you their policy only which maybe more.
     
  5. Oasis

    Oasis Senior Member
    Messages: 273

    IMO . . . Its always better to incorporate in a business like this because of the limited liability. See here in Canada and I dont think its much different accross the boarder... if you get sued and your insurance company doesnt pay or it maxes out they can come after a sole proprietor or partnership personally. it can ruin your credit or throw you into personal brankruptcy. If you are a limited corporation then you have no liability accept for waht you have personally invested into the company.


    JMO
     
  6. FTGUprprtyMaint

    FTGUprprtyMaint Member
    Messages: 67

    I go threw Nation Grange Insurance for landscaping/ Snowplowing... Make sure you go threw a private broker tho, I don't have greatest driving record from the past. But i was shocked when i got my new policy that included a $1 million dollar liability policy for $1008.00 per year. The also will cover your equipment.
     
  7. scottL

    scottL PlowSite.com Addict
    Messages: 1,603

    You'll want to form at least a partnership. 49% percent owner each. The other 2% you assign for means of arbiter if the need should arise in decision making.

    Most insurance guys who have been around for a while will be happy to give you pointers on insurance, company structure and previous experiences. Take the time and chat with them and don't base it straight off of cheapest quote ....

    Write out some simple expectations of how you'll operate together, banking accounts, payment, invoicing, quotes, expenses, etc. Setting this out in writing in plain simple English will help avoid confusing and hurt feelings - Keep the spouses/girl friends out of it!
     
  8. 06HD BOSS

    06HD BOSS 2000 Club Member
    Messages: 2,611

    For just your GL? or Commercial auto? or both?
     
  9. WOODY367

    WOODY367 Senior Member
    from LI, NY
    Messages: 468

    Turns out a guy in my car club is a lawyer and sets up cooperations. He said he would help us set up what we need to do. What are some of you guys paying for insurance for plowing. if you don't mind me asking.
     
  10. scottL

    scottL PlowSite.com Addict
    Messages: 1,603

    I think your going to hear numbers all over the board. It depends if you have multiple policy discounts, employees, past history, company, amount of coverage. From StateFarm a 1 & 3mil contractors policy at top tier discounts for no employee's starts at $410.
     
  11. 06HD BOSS

    06HD BOSS 2000 Club Member
    Messages: 2,611

    Are you wondering plowing insurance? or a total GL policy?

    either way for JUST snowplowing added to my GL policy upped it another 300. so $600 total GL. with a 1 & 3million limit
     
  12. FTGUprprtyMaint

    FTGUprprtyMaint Member
    Messages: 67

    for both my insurance agent told me that this particular company just love people that work with dirt, and small business so they provide awesome policies..