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Yikes

Discussion in 'Business Fundamentals' started by abronko, Oct 25, 2006.

  1. abronko

    abronko Junior Member
    from CT
    Messages: 6

    so here's the deal.... I have two trucks for the winter, an F-350 pickup, and an F-350 dump. I currently have about 8 driveways lined up so far, and am also about to get a contract for an office building with a seasonal price of $12,000, and a few condo buildings for a seasonal price of $7,208. I figured that i would use the pickup for these properties and put my dump truck on city plowing since i will be paying the high premium for the office building and condos anyway. I talked to my insurance agent today and she sent me for a spin! she said that just for liability i would be looking at 5,000 for the season, and then another 5,000 to 7,000 for the actual policy!!:realmad: this doesnt even include the vehicle insurance. i stand to make a substantial amount of money off these contracts but i'm afraid all that profit is goin to go straight to my insurance co.(don't for get that the get you with workmen's comp, and all the other expenses that come with plowing too!):eek:
     
  2. LLM Ann Arbor

    LLM Ann Arbor Senior Member
    Messages: 876

    Charge them another 8 dollars.

    :)
     
  3. TNT Lawncare

    TNT Lawncare Member
    Messages: 96

    Get a different insurance company. I pay $80 a month.
     
  4. LLM Ann Arbor

    LLM Ann Arbor Senior Member
    Messages: 876

    And lie through your teeth about the amount of dollars you have on contract. Frankly its none of their business.

    Sounds like you went in talkin about big contracts this and that and they priced it accoringly...to them.

    Im not saying under insure, but yeah Id shop with my feet on that one too.

    Obviously we arent going to pay 7000 for insurance.

    right?
     
  5. Mad Mulcher

    Mad Mulcher Member
    Messages: 38

    Do a forum search for "insurance". My summer time businesses insurance covers snow plowing regardless of whether I actually plow or not so its not costing me extra per se, but I have seen some pretty good posts from guys who have to purchase snow plow specific insurance and it seems to way, way cheaper than what you were quoted.
     
  6. john boardman

    john boardman Member
    Messages: 44

    I changed my truck insurance last week(2005 GMC Crew). I had Progressive Personal with my wife excluded (speeding tickets)paying 199.00 a month 6 mos. policy. I called Progressive Commercial to change vehicle over to Commercial Coverage they quoted a identical coverage as the personal at 163.00per month 1 yr policy with the truck being used to plow for business, so I raised all the limits on Bodily injury / Property Damage and added my wife as a second driver and still saved from what I was paying. Now 191.00 per month. If only everything in life worked out this way.:redbounce
     
    Last edited: Oct 26, 2006
  7. IndySnowPlow

    IndySnowPlow Senior Member
    from Indiana
    Messages: 214

    Erie Insurance
     
  8. Randy Scott

    Randy Scott Senior Member
    Messages: 142


    Anyone with a sizable and reputable business, pursuing larger clients like condos and apartments that carry adequate coverage isn't going to get insurance for $80 a month.


    Our insurance for three trucks, trailers, equipment, liability, and associated coverage is 7K for the year.
     
  9. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 8,470


    How much coverage do you have ie; 1million, 2, 3mill.
    for 3 trucks driven by employees. How much do you pay?

    If you are only insuring your self and 1 truck for 1million, then the amount of $80 a month is a good deal.

    What does " a sizable and reputable business, pursuing larger clients like condos and apartments , " have to do with premiums?

    I pay around a $100 a month for 1 mill of coverage thats all my reputable business needs.

    To slam some one because of what he pays in INS is stupid:dizzy:
    It has nothing to do with being a sizable and reputable business, pursuing larger clients like condos and apartments.
     
  10. hickslawns

    hickslawns Senior Member
    Messages: 617

    Insurance rates vary based on location, amount of snow, and other factors. Indiana or Michigan might vary from Ct. Rates might even vary from a small town to a large town. Ours is based on location, and payroll. My insurance guy doesn't care if I profit or not. He said the rates are based on payroll from the plowing, not the income. What about comparing the guys making $50/hr vs. $150/hr. Shouldn't matter who makes more, if their payroll is the same, location is the same, and insurance company is the same, then they would pay the same (obviously there may be differences if they have different number of equip or bad driving records, but apples to apples it should be the same). I would suggest you shop around and don't tell how much gross income you will receive, but tell them how much payroll is going to go towards plowing.
     
  11. Rcgm

    Rcgm Senior Member
    Messages: 613


    Yes just to be nosey how did they 8 come into the 7208 :D
    I was just wondering my friends come up with these numbers sometimes like 23 for a residential cut:dizzy: why not 25


    RCGM
    Brad
     
  12. smitty3903

    smitty3903 Junior Member
    Messages: 21

    I my self live in ct last year as well as this year i got a qoute of 600 for the season for insurance that was 1 million coverage. Why in ct are you if your in southeastern area call the byrnes agency they will hook you up.
     
  13. Northland

    Northland Senior Member
    Messages: 169

    My ND Rates through American Family Comm Ins on a 01 2500HD $60/mo Full coverage. Gen Liab $430/yr 500,000/100,000,000
     
  14. Rampart Ranger

    Rampart Ranger Senior Member
    Messages: 165

    Insurance rates "should" be based on total liability covered, modified by driving records of all insured, and safety devices/training.

    ANY OTHER considerations are BS attempts to rip you off. Shop around and find a reputable insurance company.

    BTW - I have been pleased with Nationwide for the last 10 years. Honest, fair rates. Cost went up with $95,000 payout for med and totalled truck. Paid me every penny the truck was worth, paid all med bills on time and in full. Paid lost wages for injured party. Paperwork minimal. Came back down (though not to base) within 3 years.
     
    Last edited: Nov 1, 2006