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New insurance wrinkle/plow just a couple neighbors?

Discussion in 'Business Fundamentals' started by Mick, Jan 18, 2006.

  1. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    A lot of times I read about people who are going to plow just a couple of neighbors or family, so they shouldn't need insurance. This might apply to them.

    Yesterday, I had a discussion with my insurance agent. I wanted to know about how I could cancel my General Liability insurance and finish the season still taking care of the people I have now. My proposal was to plow without charging anything. The answer was that I cannot plow anything other than my own driveway unless I have at least Commercial Vehicle insurance. I couldn't even plow for free. I can't plow a neighbor. I can't plow as a "Good Samaritan" for "an old lady". It had nothing to do with having been in the plowing business. Obviously, I'd be less of a risk to them having several years of experience than if I'd just put a plow on my truck last week. It was the plain fact that I'd be plowing snow.

    So, my stock answer still applies. When some insurance agent says that your regular vehicle insurance will cover plowing snow; Get it in writing.
     
  2. Plowlikehell

    Plowlikehell Member
    Messages: 73

    Thats good information to know. Do you have no fault insurance in your location? I only plow my drive, my fathers drive, and help a buddy out once and a while. I never even told the insurance company I have a plow. But I also dont run collision on the vehicle.

    I would like to hear more feedback on this from others
     
  3. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    "No fault" would have no impact in a situation where you are improperly insured for the activity you are engaged.
     
  4. THE BOSS 1975

    THE BOSS 1975 Senior Member
    Messages: 120

    I had gone through the same thing but we are a snowplowing business and we do get paid .I had Allstate for 3 years even for business but the fine print said the vehicle will be insured if the property is owned by you ,but if it is not your property you will not be covered .


    insured:A+ Snow Systems

    general liability 2,000,000


    note:all vehicles are insured unless they are equipped with snow plows.


    so i called my agent and they said they don't insure plow trucks or companies ,but they sure took my money!!!

    SO YES READ THE FINE PRINT OR GET IT IN WRITING !!!:gunsfiring: ALLSTATE
     
  5. bobingardner

    bobingardner Senior Member
    Messages: 136

    Thanks for the post. I got the same information from my insurance company last year but wasn't sure that I had explained the situation well enough to them. This confirms what they said and makes me feel better about having registered the truck as a commercial vehicle. It cost more than registering it as a personal vehicle and I've been questioning whether or not it's really neccessary. The insurance application also lists the plow as part the vehicle description.

    Is this going to be your last year plowing?
     
  6. crazymike

    crazymike Senior Member
    from Toronto
    Messages: 639

    Insurance copmanies also like to get your money. I have had my agent tell me one thing, another agent from the same company tell me another, then my agent change his story to match his coworkers. Especially if it means me purchasing MORE insurance.
     
  7. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    Probably. There are several factors involved. I'm getting older. Don't need the hassle. Lost a couple of lucrative accounts to a new guy who offered to do them for less than half of what I was getting. Getting aggravated that it seems like something goes wrong every time I go out (happened even after I started this thread). Anyway, I'd been thinking about building up the sanding and Magic Salt side of the business and less focus on plowing. There are a lot more plow guys out there than when I started. There are even a lot more sanders. But I know the guy who took that big account made a major investment with a truck like mine (one ton diesel, 9' plow and 2yd sander - I haven't seen it, but a friend told me it looks just like mine) so with the poor winter we're having, I'll see if he's still around next winter. So it's really a "I'll wait and see" deal.
     
  8. J&R Landscaping

    J&R Landscaping PlowSite.com Addict
    Messages: 1,202

    If you are looking for snow plow insurance, you might want to check with nationwide! I will be getting a general liability policy from them this spring for summer landscaping. The agent told me that for another $500 bucks a year, I could have plow insurance for my truck! It would be an extra $500 per truck but I dont have a plow anyway. Just planning for the future!
    I'm not sure if this is true or just a pile of BS?????:confused:
     
  9. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546


    You're not sure WHAT is BS? That sounds about right for adding snowplowing to an existing landscaping policy. Look into the limits. It's likely $300,000 for no employees and yourself as the only driver. Ask about raising to $1,000,000. Mine was increased for about $30 a year over the cost for $300,000.
     
  10. bigboyjeep

    bigboyjeep Junior Member
    from ca
    Messages: 4

    yep!

    yah right insurance = means money :help: :angel:
     
  11. SkykingHD

    SkykingHD Senior Member
    Messages: 368

    no insurance or plates

    We have a local businessman who has a small grocery store. He has an old blazer he plows lot with. He has no plates on truck. He said he just plows his place and 3 other commercial business around him. A real good chance of accident as it is a high traffic area. I never ask if he has insurance but I would doubt it. Who would give liability insurance to an unlicensed vehicle?

    Dave
     
  12. Plowfast9957

    Plowfast9957 Senior Member
    Messages: 280

    I asked my agent about insurance and they told me as long as I collected no profit that their homeowners insurance would cover it.
     
  13. Turfmower

    Turfmower Senior Member
    Messages: 376

    Cna policy has snow plowing included along it isn't over 20% of your gross it it over you pay more at end of year when they audit you.
     
  14. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,445

    No profit? so, you come and plow my drive for free and you hit my garage door.
    I can guarantee my home owners is not going to pay for the damage you caused with your plow. I will have to sue you for the damages. If you do not have insurance. Ho! yea!! When you hit the garage door it fell on my 68 Dodge Charger, so the bill will be for the damages will be kind of high$$$.
    The only time you do not need an added policy for snow plowing is if you only plow on property you OWN regardless of profit. As soon as you touch someone else's property you will be held accountable for all damages caused by you.
     
  15. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    I would definately get that one in writing. Why would a homeowner policy covering your residence provide protection for something which would have nothing to do with the property it's covering? That makes no sense.
     
  16. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,445

    If he owns the property he does not need insurance.
    I have a decanted lot truck. I only drive it to the lot in the fall and home in the spring. I call my agent and tell him that I am going to move the truck today. He then puts a rider on the vehicle so I'm covered as I drive it home on the public streets. Yes, The truck is covered on my policy for snow removal.

    "Who would give liability insurance to an unlicensed vehicle?"
    Then how do we get insurance on the skid-steer, backhoe etc etc as there not registered or licensed ether?
    It is not the same policy you have on your car this is a business that needs to have a liability policy to cover it. So to answer your Q, just call your agent and put the piece of equipment on your policy.
     
  17. SkykingHD

    SkykingHD Senior Member
    Messages: 368

    needs insurance in OHIO

    He drives plow rig on city streets. By OHIO law he must have insurance. Anyone that operates a motor vehicle on public roads must have liability insurance.

    This is the people I had to bid against. His prices are lower as he doesn't have the expenses I have.

    Dave
     
  18. Plowfast9957

    Plowfast9957 Senior Member
    Messages: 280

    Well I do plow for profit and do have insurance so i am not concerned with it but when i first talked to him about it thats what he told me.
     
  19. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,445

    Same here in Mn, you have to have what we call "no fault insurance" as a minimum.(liability ins)

    To cover your self, you need an additional policy(at least a million in coverage) to cover your plowing