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More questions on insurance

Discussion in 'Business Fundamentals' started by H&A SnowRemoval, Jan 3, 2013.

  1. H&A SnowRemoval

    H&A SnowRemoval Junior Member
    from Ohio
    Messages: 6

    Hi everyone. Is it illegal to just get insurance for the few months that it might snow in and then cancel and keep doing that every winter? Does that effect your policy rate?
     
  2. Spool it up

    Spool it up Senior Member
    Messages: 912

    Legal . You can buy a policy today for 6 months and cancel tomoro. most likely you've already paid up front so whats the point in cancelling ? No effect on rate . Its' usually just a simple liability construction ins policy .
     
  3. H&A SnowRemoval

    H&A SnowRemoval Junior Member
    from Ohio
    Messages: 6

    you don't get refunded for the remaining months you're not working? How much upfront do you pay? The whole 6-9 months or just some?? If it's not the whole thing is it??
     
  4. Dogplow Dodge

    Dogplow Dodge 2000 Club Member
    from NJ
    Messages: 2,981

    In NJ, snow plow insurance is called "Fully Earned" which means that you buy the insurance, payable in FULL, and then it can be canceled, but you will receive nothing back other than a denial letter from the insurance company the next year when you go to buy insurance again.



    Paid in full for the year, and no refunds.... That's the only way I've found it available...
     
  5. H&A SnowRemoval

    H&A SnowRemoval Junior Member
    from Ohio
    Messages: 6

    That's interesting. They deny you just because you cancelled? That's dumb. At least they got all of their money. Why do they care whether or not you cancelled? That's dumb. Thanks man. I appreciate the very prompt responses.
     
  6. Dogplow Dodge

    Dogplow Dodge 2000 Club Member
    from NJ
    Messages: 2,981

    I guess you haven't heard that insurance companies don't want to write snow policies because of claims payouts. Sometimes its better to have a rider on your landscaping policy vs an independent snow policy, such as I have.


    Call around is my only suggestion.
     
  7. H&A SnowRemoval

    H&A SnowRemoval Junior Member
    from Ohio
    Messages: 6

    I really hate to sound so out of the loop but can you explain that, please? It's better to have a rider?
     
  8. Dogplow Dodge

    Dogplow Dodge 2000 Club Member
    from NJ
    Messages: 2,981

    Think about what the word means literally....


    What is a rider on a motorcycle ? It's someone or something that is in addition to the motorcycle and not an original part it when it was made up.


    An insurance rider is an addition, or addendum to an existing policy that allows coverage for snow removal or plowing, and not a new independent policy on it's own. A rider is cheaper (usually) because you already have an existing policy (landscaping or contracting or whatever) and they're just adding the plow coverage to it
     
  9. 1olddogtwo

    1olddogtwo PlowSite Fanatic
    Messages: 11,531

    Are u kidding me?
     
  10. greg8872

    greg8872 Member
    Messages: 39

    Are you talking about business liability, or base vehicle insurance?

    If you are talking base vehicle insurance, what will you do if you get to be a lucky winner of Ohio's "Random Selection Program." in which they mail you a letter requiring proof of insurance during the summer? From Ohio BMV's website, you can qualify for a seasonal vehicle by providing "A letter from an individual's insurance agent stating that the vehicle has a history of being driven seasonally and carries liability insurance only when in use."

    So if you do go the route of seasonal insurance, then you better make sure you cancel nicely with your insurance agent (not to mention, I think in Ohio insurance companies still automatically notify the state of cancellation of insurance)