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insurance fraud or just common practice by sneeky landlord

Discussion in 'Introduce Yourself to the Community' started by O'SULL, Jan 13, 2014.

  1. O'SULL

    O'SULL Junior Member
    from BOSTON
    Messages: 1

    Ill keep this as short as possible I know you didn't plan on reading a novel at this time.
    I had driven a front end loader every winter for six years on city streets no problem , piece of cake! when I started my own masonry business about five years ago I invested in a plow in the hopes of staying relatively busy during winter, since then I have been very busy with local driveways even though I am definitely not the cheapest out there as I make quite enough on the masonry and don't intend to wreck my 50k rig just to get a few bucks. Anyway I was approached by a local landlord and asked if I would take over the snow plowing contract for his four apartment buildings approximately 60 units as his regular guy was not willing to purchase the necessary insurance policy which the landlord had requested , he asked if I would upgrade my insurance from the existing residential only policy to cover his multi apartment complex and have the property listed as additionally insured, and match his regular guys contract to boot :laughing:.
    After consulting with my insurance provider and crunching the numbers as they say :whistling: I informed him I would match the conditions of the contract but would have to charge 30% more than the other guy, the landlord seemed to be quiet upset but went along with the new arrangement.
    I provided the new insurance policy we signed the contract, Happy days pray for snow!! anyway to make a long story longer! one of the conditions of the contract was that I show up to plow within two hours of getting called by in the landlord. then our first snow, 3 inches arrives but no call from my new client, I call to inquire and he says "no need to plow, rain coming tomorrow"- fine says I . A couple more weeks pass and another decent snow fall 4 to 6 inch and the same story from our buddy (its nothing, we can handle it- see you next trip!) then we get another nice snowfall so I call to touch base with my new pal and get the same answer "its no big deal everybody can get in and out "
    Anyway when I get done with my regular driveways I decide to do a drive by to try to get my head around this bizarre situation. Low and behold I find the property all nicely plowed and walkways shoveled :eek:.
    Turns out he is still using his regular guy to plow, and god love him, why wouldn't he be using him ( being so much more "affordable" than me)
    So now he still gets his property taken care of for the price he is happy with and seemingly has a lovely insurance document on file if anybody inquires.
    You're thoughts please??:salute:
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Send a cancellation notice to him and your insurance company to keep on file along with a note.
  3. TPCLandscaping

    TPCLandscaping Senior Member
    Messages: 317

    if you have a signed contract with him to take care of the property at 3" why do you have to wait for a call? if you don't have an actually signed contract and his place is getting taken care of, take him off your insurance asap and send him a certified letter stating that he is no longer your customer and he isn't covered under your insurance. or since your from boston…take him out back and put the knuckles to him for being a *******.
  4. BUFF

    BUFF PlowSite Fanatic
    from FR NoCo
    Messages: 9,095

    X2, use Fed Ex or UPS for delivery and require a signature.
  5. Dogplow Dodge

    Dogplow Dodge PlowSite Veteran
    from NJ
    Messages: 3,699

    Wow !

    I thought underhandedness was born and raised here. Your customer set the new (snow related) bar.

    That sounds like he's setting you up for insurance fraud to me, but you should immediately call your agent, and tell them what's happening. If you get a claim filed against your policy, and haven't reported this situation, then you're the one that will lose in the end.

    Terminate the contract immediately, verbally, and in writing. I would have my lawyer send the letter to him even if it cost me a few bucks to do so...

    Wow ! Keep us posted on how this transpires. You've got me very interested in this, and my popcorn and beer are going down nicely.

  6. 32vld

    32vld Senior Member
    from LI, NY
    Messages: 622

    That you for the heads up.
  7. Ben/Insurance

    Ben/Insurance Sponsor
    Messages: 166

    I have seen this before. The property manager
    likely had a requirement imposed by his insurer
    that they obtain proof of adequate insurance from the snow
    removal contractor. He is using your insurance to satisfy
    that requirement. You need to terminate the contract flat
    in writing , with proof that he/she received it. Probably a good idea to notify your ins agent too. I've seen claims come in
    with this scenario. Good luck.
  8. ducaticorse

    ducaticorse PlowSite.com Addict
    from we
    Messages: 1,426

    After I donned a ski mask, and beat his monkey ass, I would send a cancellation notice/certified and notify your ins co that you are no longer servicing the property and to immediately cease loss coverage on the properties.
  9. 1olddogtwo

    1olddogtwo PlowSite Fanatic
    Messages: 12,174

    X's two on that one!
  10. pascack

    pascack Junior Member
    Messages: 11

    I am new to thie PLowing industry...however I am well versed in clients trying to get over!. I would let him know the added cost you incurred and that somehow he would need to make that up that differance. Plenty of room for creativity there....now the contract should have been spelled out to benefit both of you so it should be pretty cut and dry. if it isnt ...you need more creativity :)
    Last edited: Jan 21, 2014
  11. M&M

    M&M Senior Member
    Messages: 312

    With all due respect pascack, I don't think the topic creator will receive any kind of compensation from the property owner. If a guy would go through all this trouble to take advantage of someone else then there is now way he is going to pay him for the added insurance costs.

    Take it as a learning experience and move on.
  12. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 5,783

    How is this not fraud? Knowingly misrepresenting information to my insurer would get me cancelled...
  13. Sawboy

    Sawboy PlowSite.com Addict
    Messages: 1,700

    absolutely this!
  14. LawnGuy110

    LawnGuy110 Senior Member
    Messages: 196

    I would look into this being fraud...or something...I mean this cant be legal...can it?