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Dohhh! Ins.Flag ,I should have thought twice before I put "Snow" in my new LLC name.

Discussion in 'Commercial Snow Removal' started by DeereGuy, Oct 8, 2013.

  1. DeereGuy

    DeereGuy Senior Member
    Messages: 346

    Finally changed over to an LLC and altered my state legal name to a "Snow" related title vs. just my initials and last name of the Dba I was using. Good for advertising, bad for Insurance related. Just finished filling out a long questionnaire as to size of my lots, percentage of resi to commercial, whether I kept logs, they wanted names of clients for crying out loud. Are they kidding me! Stop squeezing me... I'm just a little guy.

    Undoubtedly they will either double my premium, refuse to insure, require some ridiculous agreement where I can only plow certain types of lots etc or ???. I have been running the same business for over 10 yrs. Will probably change my name again to something non-flagging.

    My first claim happened just last season where my plow swiped the lic plate off a vehicle and since it pulled the screws out thereby stripping the self threaded plastic bumper pilot hoes, they gave the woman a whole new bumper. I guess SS machine screws, nuts and washers were on back order... I have an issue with all things insurance these days. The amount of waste is obscene.

    Hey, I didn't see the car. It was under 3ft ft of snow drift and looked the same as everything else.
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Hitting the car should of just went through your truck insurance. Your over thinking it. Is this a broker or a bigger company your going through?
  3. DeereGuy

    DeereGuy Senior Member
    Messages: 346

    Independent Broker. Actually my MetalPless swiped the plate. Got lucky on that one. Could have caved in the whole vehicle. Road insur on the Tractor with plate covered the bumper. I did pay for it in the end as my yrly premium is around $900. for the tractor. GL is about the same and comm. truck a bit more. Then I have small equip insur etc etc. Never had a claim in 10 yrs.

    But my IA said the underwriter for my GL which was not charged or aware of the incident sent over the query with the business name change. It used to be that summer Lt Const. was more profitable. That was before the recession thus my reformating my business name and trying to protect myself a bit with the LLC. I still have a Dba under the LLC for summer related activities to separate out non snow related. But really, names of all my snow clients.
  4. Grassman09

    Grassman09 2000 Club Member
    Messages: 2,808

    The more you make the more they feel they should have from you. State farm has been after me to send in some big questionnaire like that. I have not sent anything to them.

    what gets me is say you have 100,000 worth of equipment they want you to have the same amount of coverage. What are the chances of all your equipment going missing at one time? When I added a tractor they wanted to jack my rates up to the value of the tractor.
  5. DeereGuy

    DeereGuy Senior Member
    Messages: 346

    Well the only good thing about Jdeere financial is that they are independent. They fully insure their equipment when you take a loan with them. They also do not report your debt to anyone. I know. Just bought a house. My
    jd loan did not show. Also, It is cheap. I want to say like $50. a year on $100k+. for the term of the loan. I worry more about my small equipment.

    Having a hard time with a 40 acre wood lot that I put a foundation on with intentions to build. That was 15 yrs ago. When they found out about the improvements a few yrs ago the liability insur went from $50/yr to $850/yr. Now they want me to fence in everything etc as of last week. I have 30 days. It's not enough that they are stealing the $850. every year. If I don't have insur. than I am in default of my loan agreement. Trying to figure a way to pay it off. Just not happening this year.

    Last thing I need during my contract writing season. Maine has landowner protections in place so you just cant walk on trip and sue. Ins. says it falls between classifications. Tryed to change my carrier but they all now have the same catagory for that lot.

    I feel like Elaine in the Seinfeld show where all the Doctors have her labeled as trouble sharing her info and she just can't get help or out. Prob just me...
  6. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Don't tell Paul you hit something with your Metalpless!
  7. DeereGuy

    DeereGuy Senior Member
    Messages: 346

    Double Dohhh!
  8. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,953

    Were you hoping they wouldn't find out about the scope of your work? What would happen if a major incident comes along, slightly more serious than a bumper, and you find out you aren't covered? Sounds like a blessing you changed your name.
  9. DeereGuy

    DeereGuy Senior Member
    Messages: 346

    No, I have been forth right always. I am not a big player. My experience is that one detail can turn into a very costly ordeal or not. Once done it can be difficult to undo. Insurance and liability is the reason NSP's exist as far as I know. My recent SIMA Questionaire that I filled out harped on Insurance and in short suggesting that it may become a possible threat to business practice as we have known it.

    I realize scope of work is relevant. I don't think there is much rhyme or reason to how things are costed out. The underwriter wanted to know if HDepots, Walmarts or Market baskets were on my list or large office park type places. Evidently, lots of suits there. People and ambulance chasers wanting free Money. My biggest acct sees more activity and vehicle turnover than any place I know. I'm not going to clue them in to that. They may or may not catch up at some point. I almost bid on a Sam's club. Guess that would have cost me.

    As far as finding out if I'm covered. Insurance is so complicated that usually the Independent agents I have delt with have no idea if certain things are covered until a direct question is posed to the carrier's underwriter. Then they and I make a change to be covered and my insurance goes up. The whole industry is a scam as far as I'm concerned.

    Just last year my son got his license and my agent put him on our policy. He swore that my son could drive all my vehicles and he checked it out with said insurer. Well, 6 months goes by and my son needs an affidavit to show his school that he is in fact covered so he can park in the high school lot. I ask and it comes back with only the passenger vehicle. I ask about the 3/4 ton and they say not til he's 21. He had been using the truck for 6 mths on and off. Frustrating is all I can say. So he quotes me on the old 04 2500hd and the price doubles to $2400. for the year. I say no and my wife ends up buying a new tdi vw for her long commute. He uses the old tacoma. Had this type of thing happen many times over the last 10 years. What an industry. They can't loose... Wish I had that tagline in my business model. Absolutely the industry I love to hate... Well that, and the current gov't administration... moving on now.
    Last edited: Oct 9, 2013