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Planning for next year

Discussion in 'Business Fundamentals' started by chcav1218, Feb 16, 2009.

  1. chcav1218

    chcav1218 Senior Member
    Messages: 954

    I'm planning for next winter, and I would like to get into plowing roads for a town or the state, but would also like to expand my residential snow removal services. My plan is to use my truck on the roads, and have my friends who is buying a smaller vehicle plow the driveways for me. I think this will work out well, but I have no idea what it means as far as insurance goes. If he is a subcontractor for me, is it possible for him to be under my insurance policy, or will he have to get his own policy since the vehicle belongs to him? What would be better and safer for me? I know these are probably easy questions but this is my first year at this. Any help is greatly appreciated

    SNOWANDICEMAN Senior Member
    Messages: 225


    He would have to get his own insurance because the truck will be registered to him. Also you might have to get liability insurance. Just a little info. Plowing for the state will do a number on your truck also , the salt will eat and rust everything up fast.
  3. chcav1218

    chcav1218 Senior Member
    Messages: 954

    Yeh I have insurance already, I just want to make sure I know al the facts so I can pass everything on to him. Yeh I've heard that about plowing for the state, but I want to do it to make money for a new truck so I can just use this one as a plow/grunt work truck. Thanks Bob
  4. ColliganLands

    ColliganLands PlowSite.com Addict
    Messages: 1,854

    id get general liability for your business in case of anything happening.
    plowing for the state/town is fine just wash the underside of the truck at a washbay on the way home after the storm
  5. chcav1218

    chcav1218 Senior Member
    Messages: 954

    This is gonna be interesting, he's actually my boss and wants to work for me lol
  6. Mick

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

    If you plow for the state or town, you will need "Municipal" type commercial insurance.

    The best advice regarding the sub is to get a copy of his general liability policy. This should name you as "additional insured". The best way is to contact his insurance company and have a copy sent to you. At the same time, you should have them notify you if he cancels the policy or it is not renewed due to nonpayment of the premium. Keep the copy on file to show your insurance company in case of a claim or an audit.
  7. chcav1218

    chcav1218 Senior Member
    Messages: 954

    thats good advice mick, thnx
  8. BigDave12768

    BigDave12768 PlowSite.com Addict
    Messages: 1,446

    Good luck to you on this deal. How many driveways you plan on picking up? If he is your boss. That means you dont own a landscape company. PLus if he picks up a truck it wont take him long to figure out he can post ads on CL or Sub for a company that does large comercial lots and get alot more hours. It wont take long before he see's the forest through the tree's. But good luck to ya. It can be done but the headaches can be huge.
  9. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    You need to contact either the state, county or city you want to sub for and see when and if they will be bidding it. My county subs out trucks and drivers and my City subs out drivers with their trucks.

    Their bid specs will tell you what you need to have to do the job as far as insurance, license, equipment, etc. Sounds like you just have a pick-up truck. Not a lot of call for a pickup truck to plow city, county, state streets around here. Don't know about where you are at.

    As far as your friend goes, use him as a sub. It will be very strange having your boss work for you in the off time from your real job. I would suggest either doing the municiple stuff or the driveways, not both.

    Good Luck
  10. chcav1218

    chcav1218 Senior Member
    Messages: 954

    he wont go to a bigger company because he doesnt have the time. It just happens to work out because the club we work at closes during snow (due to absolutely no business), And the towns around here hire a lot of pick ups, the state hires some but they really want the bigs trucks.
  11. fisher guy

    fisher guy PlowSite.com Addict
    Messages: 1,068

    well u could always just buy him a company truck and itll probally a lil easier to insure lol j/p man i just had to chime in
  12. Burkartsplow

    Burkartsplow PlowSite Veteran
    Messages: 3,248

    get the right insurance like everyone is saying.