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Insurance Questions

Discussion in 'Business Fundamentals' started by NortheastSNO, Dec 11, 2013.

  1. NortheastSNO

    NortheastSNO Member
    Messages: 50

    I got a call from my insurance agent the other day. During the course of the conversation my level of coverage came up.

    He basically said that I did not need commercial insurance due to the fact that we are a snow only firm. He said that if we worked a year round that would be a different story. I know that all of the contracts that we bid upon ask for a cert of insurance coverage with I was told means commercial insurance.

    I am a little confused by this as I was always under the impression that you need commercial insurance to plow snow, not just a higher coverage rate.

    If he is right I have been paying for commercial insurance for 5 years now at (well lets say I got not lube). And even more why did he just tell me this now.

    Any help would be great!!!! Thanks Guys
  2. Wilnip

    Wilnip Senior Member
    Messages: 592

    My understanding is you need commercial auto and liability at a minimum. And workers comp if you have any employees. But he's the agent. He should understand his products better than anyone on this forum.
  3. Dogplow Dodge

    Dogplow Dodge PlowSite Veteran
    from NJ
    Messages: 3,699

    I think you're barking up the wrong tree here.

    Wouldn't the state require commercial coverage of your business / vehicles and such ? In NJ, we're required to have $500,000 worth of coverage, and have to provide proof each year to the state that we're covered under a commercial policy. I've never heard of a personal insurance policy covering any type of activities that produced income, derived state sales taxes and such.

    Just because your insurer doesn't require it, doesn't mean it isn't required. Contact your state dept of consumer affairs, or whatever dept you go to to obtain licensing, sales tax authority and such, and find out what's required.

    I bet dollars to donuts you're still required to have a commercial policy. Why wouldn't you want to protect your personal assets? Commercial (income driven ) Claims against your personal auto policy would terminate your policy really fast.

    Just the fact that you have W/C on employees should dictate this.
  4. NortheastSNO

    NortheastSNO Member
    Messages: 50

    We have no employees, only sub-contractors. I just don't understand what he was trying to tell me. I was always under the impression that I needed commercial insurance, until now.

    Thanks for the Help guys
  5. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Time to make some calls to find a new agent.
  6. Robinson_Cnst

    Robinson_Cnst Senior Member
    Messages: 146

    You need two different kinds of insurance to be safe. I think your confusing the two as both automobile insurance.

    Your commercial "liability" has nothing to do with your truck. It is to insure your business that is providing the work, rather it is a sole proprietorship or a corp.

    Your auto insurance can be a commercial policy, however I have found with most you don't need a specific commercial policy for vehicles under 26,000 lbs.

    I have a 1,000,000 liability policy for my construction company with a plow endorsement added. Then I have a "utility" policy with State Farm for all of my trucks which they know plow snow. It added little to no cost to my premium. State Farm only writes comm. policies for trucks that they know will only operate as commercial vehicles.

    So you need business insurance and vehicle insurance. Even if you just do it as extra income in the winter, you have to have liability on your business as a snow removal contractor.
  7. Ben/Insurance

    Ben/Insurance Sponsor
    Messages: 166

    Your insurance agent said you don't need insurance to cover your snow operations? How does he expect you to cover your exposure? Who is going to pay the legal fees to defend you if you are sued? That is terrible advice. I hope it doesn't define his/her service to you. Forget about the state requirements. You need GL to cover trip and falls after you have plowed and commercial auto coverage to cover your plowing operations. Good Luck.
  8. NortheastSNO

    NortheastSNO Member
    Messages: 50

    Thanks for the help I am already looking for a new insurance agent, talked to him today and he asked if the state was responsible for plowing his lot. WTF. Old insurance agent had us covered great, then this guy comes in and tries to sell me on this.

    So tried of insurance companies hiring any kid of the street, who used to sell burgers at the DQ. 2 week course and there you go. WTF

    Thanks guys