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Insurance Co Help

Discussion in 'Business Fundamentals' started by xc23, Oct 14, 2008.

  1. xc23

    xc23 Member
    Messages: 79

    I just picked up a new contract and they have what they call A Hold harmless agreement. I have had insurance last year but changed the name of my business with the word excavating in it my ins co is telling me my rates are going to go through the roof because of the word Excavating and the "hold harmless clause" anyone have any experience with this or Ins Co recommendations It would Be great
  2. murray83

    murray83 Senior Member
    Messages: 420

    Have herd a few stories like this from around here,the word excavating is a dirty word with insurance folk since they think of utilities when hearing it

    I do know one guy who started a numbered company to sub his work to his excavating company for tax and insurance reasons others on here can bring up other ideas.

    Never herd of a hold harmless clause before whats the basic idea behind it?
  3. Mick

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

    A hold harmless clause basically means that you will defend them in any action taken against them (makes your insurance first payor) and protects them from lawsuits. You want to run that by your insurance company as they most likely will not agree to it. Since YOU agreed to it (not your insurance company), YOU would be personally liable and uninsured.
  4. jjklongisland

    jjklongisland Senior Member
    Messages: 470

    Hold Harmless holds you 100% liable for any wrong doing. I deal with them all the time for construction contracts. The firm I work for will not sign any contract that has a hold harmless clause. If you have an attorney that deals with your business I would ask him.

    For example the Utility Mark Out company we use had a hold harmless clause in there contract. If we signed that contract and the mark out company marked out a water service when it was really the gas service and everything went kaboom, the mark-out company is not responsible. It means that I am out of a job when the company I work for is sued for millions and we have to close up shop. Needless to say, they removed the hold harmless from there contact and now we sign them.
    Last edited: Oct 14, 2008
  5. NorthernSvc's

    NorthernSvc's Senior Member
    Messages: 781

    if there making you signa hold harmless clause u better make sure you can salt whenever you want to , and not when they say to salt. otherwise gonna open youself up to a lot of problems... not a whole lot around that besides dumping the excavating in the name, i would imagine thought that the would care more about you signing contracts with hold harmless agreements in them. better make sure the contract is worth the jump in premium, otherwise might be sound business to say no thank you.
  6. murray83

    murray83 Senior Member
    Messages: 420

    Gotta love the legal mumbo jumbo insurance and lawyers dream up :rolleyes:
  7. Danhoe

    Danhoe Senior Member
    Messages: 102

    Do not sign the contract, you will be responsible for EVERYTHING. If you do sign the contract cross that section, if your customer can't handle that. They are not worth dealing with. Someone tried that with me on snow plowing & when I dig for them. I showed my insurance guy that & he laughed at it. Then I went to a construction attorney, he laughed. So I went back to the landscaper. The way he wrote his stuff up, I would end up insurecing him and be responsable for every one's actions on a job I was involved with even if I was not on the site. danhoe
  8. Makndust

    Makndust Senior Member
    Messages: 324

    I make all my customers sign a "Hold Harmless" contract for me. In other words, if anything happens they will defend me in court. If they don't sign it, they don't get their snow plowed. It sux for them when I'm the only one in town that is stupid enough to do this line of work.
  9. xc23

    xc23 Member
    Messages: 79

    I really appreciate every thing you guy posted . And the knowledge on this site is great .I sent the agreement to my Ins Co to let them review it . After dissecting it a bit myself I came to understand the way it is worded . I have to be negligent or not perform to the contract standards or cause damage by willful misconduct to be held responsible. So i have to not plow ,salt or destroy their property to get jammed up Or so it reads. Does that sound right to you guys . Thanks
  10. Mick

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

    You still want to take that "Hold Harmless" clause out of there. Even though a "slip and fall" may not seem like your fault, that clause could force you to defend them in court. Likewise, your insurance company might have to pay off even when the claim was aimed at them. I just wouln''t like the "Hold Harmless" unless it's me being held harmless. But, take the advise of your insurance company over mine.
  11. xc23

    xc23 Member
    Messages: 79

    Wattling for the Ins Co to get back to me . I will still contact the customer and discuss it with them as well. Thanks
  12. dfdsuperduty

    dfdsuperduty Senior Member
    Messages: 597

    i had a claim last year for a slip and fall and they tried to say that i was negligent it went to court and the judge looked at my invoices showing when i salted and how much i used. After reviewing everything and thank god for cctv cameras the judge looked at the lady and stated ma'am its cold outside there is snow on the ground which means there may ice you should really be more careful next time. He awarded her 0.00 case closed