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Increased insurance requirements and change of language

Discussion in 'Business Fundamentals' started by Camden, Sep 15, 2009.

  1. Camden

    Camden PlowSite Fanatic
    Messages: 6,604

    One of my clients sent me a letter requesting that I increase my insurance limits and change the wording of my policy around. I've always had limits that have exceeded their previous requirements so the letter was a little bit of a surprise.

    However, my big concern is that they're asking my policy to state that I'm assuming sole responsibility for the property. None of my other accounts have ever asked for this type of language to appear.

    Anyone else dealt with this type of thing before?
  2. bigearl

    bigearl Senior Member
    Messages: 393

    Have seen that yet, but I am sure that we all will.
  3. Jay brown

    Jay brown PlowSite.com Addict
    Messages: 1,783

    does this property make you wealthy?? if the answer is no, then i would drop it......
    i do not have a single signed contract and don't plan to.... a hand shake and an understanding of the work to be done does it for me.
  4. Camden

    Camden PlowSite Fanatic
    Messages: 6,604

    It's obvious that you and I don't compete for the same type of clientele. I only solicit companies who want a professional because they're willing to pay a decent price for the premium service that I provide.

    I understand that a lot of people are fine with making deals by the use of a handshake and a smile but that's not for me.
  5. framer1901

    framer1901 Senior Member
    Messages: 852

    I'd consult an attorney in your state, maybe even your own insurance company - then only you can decide if the chance if any is worth it.

    One of the tuff things with this site is the difference of operations from one poster to another. Some are content to plow their little corner of the world while others can't get enough equipment, to each his own......
  6. AiRhed

    AiRhed Senior Member
    Messages: 401

    This kind of thing just gets me. Your job as a Snow & Ice management contractor is to successfully MINIMIZE their risk of a personal liability claim from slip and fall or accident through snow removal and anti-icing applications. Your job is not to ASSUME their risk as the property owner. I think that might be something to bring to their attention?
  7. juspayme

    juspayme Senior Member
    Messages: 116

    handshakes were fine in the 1940s but in todays world everyone is sue happy.

    most people dont spend the money for a good accountant and a good lawyer. and when the irs comes knocking and people are falling down in your parking lots, your in deep sh$t.

    protect your self. a court system can put leins on future earnings as well as take assets. get a good counsel!
  8. mullis56

    mullis56 Senior Member
    from Indiana
    Messages: 824

    They have deeper pockets then you, if some legality issue came around they'd be in it anyway as they have deeper pockets.
  9. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 13,236

    Price goes way up if you have sole responsibility.

    They going to pay for a truck\operator\salter sitting on site from Nov 1 through Apr 15? 24 hours a day?

    I'm guessing someone didn't really know what they were asking, Roy.

    I'd bet your insurance agent will have a cow as would any attorney with his\her salt. (pun intended)
  10. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    Talk to your insurance agent first and have them explain what it means to you. After that you can make up your own mind. As Oomkes said, the price goes way up.
  11. terrapro

    terrapro PlowSite Veteran
    from MI
    Messages: 3,912

    HAHA, they must have gotten a new manager fresh out of college who thinks he will solve all the companies problems.

    I would draw up a crazy contract stating what you would need to assume liability. Like hauling off site ALL snow every event and using torches to melt the snow and ice down to dry pavement instead of salt. Someone will have to be on site 24/7 and of course charge hourly for that. Make sure it will be atleast 5 times the cost of your original contract, they will get the idea that they don't want you to assume complete liability.
  12. Camden

    Camden PlowSite Fanatic
    Messages: 6,604

    My contract states that I can return to the site anytime I deem it necessary to maintain safety standards. I'm allowed to bill on a time + material basis. I definitely will be making more trips there than I have in previous years.
  13. Doin_It

    Doin_It Senior Member
    from Mt.
    Messages: 136

    Talk to your SIMA people, isn't that why you pay them the big bucks to be there to help you etc etc?
  14. Camden

    Camden PlowSite Fanatic
    Messages: 6,604

    No, I signed up for the cool stickers.
  15. chaos270

    chaos270 Junior Member
    from CT
    Messages: 22

    As many have said talk to a lawyer and your insurance agent, if your willing to proceed after that I would give them your original contract and price and then a new one meeting their request.

    Mark has the basic idea with his statement about 24/7 coverage, because that is what they are asking you to provide.

  16. scottL

    scottL PlowSite.com Addict
    Messages: 1,613

    No Way! Walk away.

    I've had clients ask to be named on my insurance. The insurance company can do it for a tiny price. HOWEVER, I feel that the client is trying to side step their responsibility and be cheap. Also, I will never assume total responsibility.

    I do not have total control on their property nor the weather or someone's actions so, how can I guarantee total safety other than to block anyone from entering the property during the winter months. Heck people slip on dry salt. How about a granule of salt tracked inside and some high healed office worked slips on that?????? You now own it.

    I politely explain it is to your benefit to maintain your own insurance, and safety policies with your employees and public. I can help make travel more accommodating but, no one can guarantee total safety. Detail their specific property requirements and log your actions to that. Lawyers/insurance will first look at that and then determine if there is a case of liability. Always makes me laugh when I hear or see .... ZERO TOLERANCE - what does that really mean :dizzy: