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insurance help

Discussion in 'Business Fundamentals' started by bjwlawncare, Jan 12, 2009.

  1. bjwlawncare

    bjwlawncare Junior Member
    from PA
    Messages: 28

    I got a notice saying I need more insurance now. 600,000 was good in november. Can they do this and does this seem right. 2 million. It is a small lot right now I charge them 125 per push 75 salt 30 sidewalks. It is an assisted living home with a lot that probably holds 50 - 60 cars max.

    This is what they are requesting:
    They want 2 million general aggregate, 1 million personal injury, 1 million each occurance.
    On my vehicle they want 1 million combined single limit or bodily injury.
    Excess/umbrella liability they want 5 million each occurence and 5 million aggregate.
    Under workers comp they request 500k each accident, disease policy limit 500k and 500k for disease each employee.

    Does this seem reasonable or is it out of line for requests you receive?
  2. JDiepstra

    JDiepstra PlowSite.com Addict
    Messages: 1,780

    This sounds like very specific numbers that they are probably not pulling out of this air. I imagine these numbers have been imposed on them from somewhere. The probably just got sued by someone LOL. I have never had a customer even ask me about insurance. Of course that doesn't mean it's not needed..... Anyway, call your agent, find out how much it will cost, and tell the assissted living home how much their new price will be after you take your new expenses into consideration. Look at it on the bright side, it could really save your butt one day.
  3. forestfireguy

    forestfireguy PlowSite.com Addict
    Messages: 1,276

    Thats not uncommon, bottom line is their insurance was audited by their company and this is what they were told they needed to require of their providers, I'd guess anyone providing a service for them needs the same coverage, sometimes they ask for more from snow contractors due to the exposure to liability. I hope you have carte blanche to service as you see fit, if not you better get them to sign a declined services agreement. I do lots of commercial properties, actually only commercial properties except 2 "backscratches" I do for people whose buildings we do, and only twice have I been asked for 2 mil - 1 mil -1 mil............and they were both big retail locations. Sounds to me like their ins co just got sued for big money or settled something for an under insured/non insured contractor somewhere.
  4. bjwlawncare

    bjwlawncare Junior Member
    from PA
    Messages: 28

    thanks for the replies. How much insurance do you guys have. and how much did it cost you. I paid 1,200 for 600,000. ???
  5. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Call you insurance company and have then bump it up. At the end of the season go back down so you'll only be paying 3 months worth.
  6. mullis56

    mullis56 Senior Member
    from Indiana
    Messages: 824

    What GV said.
  7. LoneCowboy

    LoneCowboy PlowSite.com Addict
    Messages: 1,760

    Most people carry 1 million worth around here (either a million or zero).
    2 million seems like a lot
    1st, you need to find out, how much more it is going to be? if it's $50, well you can just eat it. If ti's a thousand bucks, well...........

    For such a small lot, I'd tell them sure I'll do it, but I'll be charging you the additional premium. That seems fair. They require above and beyond the typical numbers, they have to pay.

    In response to GV's suggestion, they don't do that around here. All policies are 1 year in length. (even snow liability), so you can't just drop it, you already paid.
  8. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    It's going to be alot more than a thousand bucks. For the same number requirements for me it runs close to 10 grand a year. What you will have to do is give them the choice of either paying out your contract as is, and find someone else to plow for them, or you will have to re-price the lot. My guess is they will never find anyone that carries that kind of insurance. I would even bet they will want to be added as additional insured, and will have some kind of language in there about releasing all libality for owner, residents, visitors, and employees. The language issue is waht will cost the most money on your new policy
  9. lilweeds

    lilweeds PlowSite.com Addict
    Messages: 1,178

    Seems like alot of cash for what your getting in coverage. I have a great guy in Pa. Great rates. The coverage they are requesting seems really high though. I carry 2 mill GL, 1 Mill auto, and an extra mill umbrella.
  10. bjwlawncare

    bjwlawncare Junior Member
    from PA
    Messages: 28

    Thanks for the help guys. We have 1 year policies in scranton. Insurance man said it will cost $620 more. Tough spot. Should I eat it hoping to get the lawn work in summer or raise their price and see what happens. I was leaning towards eating it just because I do their sister lot which is owned by the same company???I don't want to lose both that is for sure.
  11. bjwlawncare

    bjwlawncare Junior Member
    from PA
    Messages: 28

    here it is

    from the company

  12. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    I would go talk to them. Tell them what is going on, and explain the deal to them. I can eat the cost of this if you sign both properties now for 3 years, snow, and lawn, or here is how much extra it will be for the remaining winter months and go from there. Make the deal attractive enough for them to sign and you will have 3 years worth of work.
  13. lilweeds

    lilweeds PlowSite.com Addict
    Messages: 1,178

    Agreed!!!! Your really getting a good deal if all that extra insurance is only gonna cost $620. What company are you with?
  14. bjwlawncare

    bjwlawncare Junior Member
    from PA
    Messages: 28

    State farm it doesn't seem right does it. I faxed him the requirements above and that was his quote over the phone. I am going there tomorrow with a check. Best part is guys I raised their price slightly and they had no problem with it. Win/Win. Thanks so much guys it was a huge help.
  15. sp6x6

    sp6x6 Member
    Messages: 58

    Ihave that kind of coverage and one month costs more than that upgrade, but that is as a GC. All my subs have to have 1-2 mill. coverage dependent on current project. That is part of why I blow snow, I'm already covered
  16. farmfamily

    farmfamily Junior Member
    Messages: 2


    You should go to www.farmfamily.com and use their agent locator. Their the leader in the northeast for landscapers and snow plowers.