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Might be out of business tomorrow

Discussion in 'Commercial Snow Removal' started by LoneCowboy, Jan 22, 2009.

  1. LoneCowboy

    LoneCowboy PlowSite.com Addict
    Messages: 1,760

    For some reason my snow liability insurance comes for renewal in January (in fact it expires tomorow) (don't ask, I tried to change it, I can't and it's stupid)
    Talked with insurance agent a month ago and told him he has to do better.
    We've had TWO, count 'em TWO plowable events in all of 2008. There's simply NFW I'm paying the same, I'm not making any money to begin with and while it's certainly an average, 2 vs. an average of 15 isn't reasonable.
    He said no problem.
    A week ago he said "I found someone who's almost 40% cheaper"
    I go over to write the check yesterday I go in and he says "we got denied" What????

    today he calls, says I can only use the tractor to plow with with this cheaper company (which won't work, the route is too far apart), and then he says well the company you are with now wants to charge you 30% more

    Man was I pissed
    3 years, no claims paid, and 2 events in all of 2008 and you want to charge 30% more?
    I told him "I do thousands of dollars in business with you, do better" and hung up.
    We'll see if he does, he has til noon Friday.

    I'll simply fold up my snow tent rather than eat up 50% of my meager billings for insurance.

  2. nbenallo33

    nbenallo33 Senior Member
    Messages: 826

    hope everything works out for you... i know colorado hasnt had much this year we are slow at work an i feel we are in trouble because we rely on snow this time of year and it was 70* this weeek hopefully we will get some snow tomorrow
  3. wewille

    wewille Senior Member
    Messages: 311

    Wow i hate hearing that! Insurance companies and lawyers i cannot stand!! I hope you can work something out.
  4. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,030

    We ran into a problem 6 years ago we had a slip and fall pending and in Jan our insurance company decided to not renew us. Our agent ended up calling in a favour from another company and they insured us for the rest of the season. Now our insurance is due in Sept and we have time to shop. Hope you get it worked out.
  5. Superior L & L

    Superior L & L PlowSite Veteran
    from MI
    Messages: 3,035

    WOW sorry to here this. I though "Colorado" and "snow" go hand in hand
  6. unit28

    unit28 PlowSite Fanatic
    Messages: 6,477

    Heck our ins went up too {Today}and we have progressive. No faults or anything.
    What's Up?
  7. Ramairfreak98ss

    Ramairfreak98ss PlowSite.com Addict
    Messages: 1,872

    I feel for ya man, ALL of our insurances renew in December/January, goddam it sucks!

    dont tell anyone, but i have neglected to "register/pay the state tax" on our newest ford f350.... its like $1700 with registration. Now i just bought the truck, put money down, have a 12mo loan thats $1,300 a month and barely able to pay that. Our new JD tractor is $700 a month and i sunk 12k down in late October 08, bought plows, spreaders etc.

    we just got stuck from some accounts that were subbed to us, we have salted them ZERO times so far, why? because ahole Brickmans was salting them on their own and never calling us. So now we lost a few big accounts and don't have many places to fill in the gaps. We have four plow trucks/spreaders and a tractor for snow removal. So far, two trucks ever have gone out for salting 10-13 times this whole season.

    We have not plowed anything yet. Clients invoices that should be 10k are $850.00. Others that would be $7k per big snowfall are $700 in salting for the month :(

    We have 15 bills due from january 20th to February 4th.

    Lowest is $300, highest is $1,300. FIFTEEN, when your only doing 10% of your normal volume for the last 3 months it catches up fast. Its the first month sine July 08 that im looking to have to roll over balances on a few credit cards and at high aprs :( i feel for everyone in this industry this year, its the 3rd year in a row now in NJ that we have gotten zilch for the winter, barely able to make expenses and pay for fuel, labor, taxes, insurance and maintenance alone.

    I need 4 new "good" grippy tires for the SRW F350 we have, do i have 1k sitting around? no

    I need new front brake rotors, and pads for the Dually F350, dont have $300-400 for that either

    Need a 2.5" lift kit fo rthe new dually f350, sits too low in front for the Boss plow, $200~ dont have that.

    I have supplies at the hardware store waiting for pickup, already paid for, and i cant pick them up because i know we need another 7k in supplies to complete our new garage.

    everything this month is on hold, i dont see it getting better through Feb 09 either. Ive made several changes in the last 6 months to combat this blow in income, and still im in the same position, without those changes i'd probably have gone under too.
  8. MileHigh

    MileHigh PlowSite.com Addict
    Messages: 1,827

    Hope everything works out for you Lone...

    The snow is coming in as well, and I heard more of a better chance in the north.

    That sucks youv'e only plowed twice this year:realmad:...It'll come hopefully.

    Im just a little south of you and I've been out a disapointing 5 times..but damn twice, that's crap.
  9. KL&M Snow Div.

    KL&M Snow Div. PlowSite.com Addict
    Messages: 1,616

    Man they are really tryin to F**k you in the a$$. I would just keep plowing without their stupid insurance if you can get by with it.
  10. Ramairfreak98ss

    Ramairfreak98ss PlowSite.com Addict
    Messages: 1,872

    Our insurance stayed the same, no claims, but 25k value for snow removal in the 1k+ range yearly.... we did 1/4 of that least year and still had to pay the same :(
  11. DODGEing

    DODGEing Member
    Messages: 53

    2 plowable events here and just paid those crooks there full price WTF. :realmad:Told them this year id be lucky to make a 1/3 of last year while the whole time there gazing out the GD window with there hand out waiting on the check........They got us by the ballz and they know it. Like being strong armed or paying the MOB for protection. But if that was the case you could atleast do something about it. not with the Insurance there going to f*^k us now so we hopefully dont get F*^*ed later by someone else. No matter who is F ing us were still geting f***ed. why dont they just say were gona put the tip in now soo someone else cant slam it in later. WOW I feel better now glad to get that off my chest.. I apologize if my potty mouth offended anyone!
  12. iceyman

    iceyman 2000 Club Member
    Messages: 2,521

    welcome to 2009
  13. TCLA

    TCLA 2000 Club Member
    Messages: 2,692

    Silly me.....and here I thought all the tasty questions and advise was spent on the suv thread! :cry:
  14. Gettindirty

    Gettindirty Member
    Messages: 38

    Man I'm likin this rant!.

    2000 insurance - home business vehicles about $1000
    2009 insurance - home business vehicles about $4000 (1 home claim no bus claim 1 auto claim 5 yrs ago)

    2000 Utilities - Electric, LP about $1500
    2009 Utilities - Electric, LP about $7000 (elec dereg went from .05 to .11, LP .69 today 1.99 per gal)

    2000 Property taxes about $1800
    2009 Property taxes about $4800 (assessed in 00 at 90k today 200k, school was "broke" and went to State max limit)

    2000 price per drive plowed $15 yard mowed $20
    2009 price per drive plowed $20 yard mowed $25

    Between these three guys (ins, taxes and utilities) I'm now officially poor! Please keep workin our asses off and get nowhere. Sincerely "The Little Guys".
  15. LoneCowboy

    LoneCowboy PlowSite.com Addict
    Messages: 1,760

    You misunderstand. Not this season
    Feb 14th and Dec 14th
    That's it since Jan 1st, 2008 to now
    and this one is going to be a bust too, you can just tell, no moisture in the air.

    IPLOWSNO PlowSite.com Addict
    Messages: 1,619

    the government the utilitiy companys and insurance companys will never go broke because they just raise the rates, we on the other hand get screwed blued and tattoed.
  17. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    Is that the only insurance agent in town?
  18. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    If he can't hook you up today, then you need to drop him and find someone else.

    I'm not saying plow without ins. But I AM going to say don't drop your accounts this season no matter what happens.
  19. MileHigh

    MileHigh PlowSite.com Addict
    Messages: 1,827

    Holy Chit!!!

    So your saying in 13 months..you been out to plow twice?...in Colorado?

    O Man...I truly feel your pain now. I just counted my invoices from Jan 1st 2008 - current. I have had 12 plowable events...I I think that Is too low...I think I would be in a dark place If I only got two in....especially since your neighbors down south are getting hit with plowable snow.

    If you look at the modules....there is an upslope wind that should be taking place this afternoon that should kick the moisture our way...more to the north.

    You know you'll get through this Cowboy...just hang tough.:gunsfiring::gunsfiring::gunsfiring:

    Oh and check out American Family Insurance...I have a full cpverage 1mil gen liability that covers snow plowing, and my lawn maintenance for under 800 a year...And It actually went down when I added the f250...and took the f150 off..because It's sitting as of now.

    Check em out. And let us know how this pans out...Im interested.
    Last edited: Jan 23, 2009
  20. LoneCowboy

    LoneCowboy PlowSite.com Addict
    Messages: 1,760

    You got it.
    Twice :cry:
    We always get less snow than Golden (used to live at 8th and Union, I know)
    but this is simply ridiculous.

    Heck I realized I still have bags of ice melt from fall of 07. And people are calling trying to get me to buy more. For what?