Insurance

Tim Baden

Member
Location
Kalamazoo,Mi.
I looked in search but didn't really find the answer I needed.How much dose liability insurance cost?Will be doing residential and small commercial.I live in sw Mich.Even if you could give me a ball park figure that would help out allot.
This site is great,you helped me pick out the plow I would need.Thanks very much.
Have a great day!
 

75

PlowSite.com Addict
You'll find insurance costs will vary a lot from place to place - some areas of the country, for example NJ, are just more expensive overall.

It will also depend on how much coverage you have - $500,000 liability as opposed to $1 mil as opposed to $2 mil etc............. I am insured for $2 mil, IMO you'll want at least $1 mil liability coverage.

As far as what it's likely to cost you some of our other members from your area can probably answer that best.
 
Not including my vehicles, employees or equipment, our liability runs around $200.00 a year, this is for 2 mil general liability. Call insurance agents in your area and price shop. We currently use American Family. I had Erie in the past and did not like their customer service, just my opinion.
 

PINEISLAND1

PlowSite.com Veteran
Location
Western Michigan
MI is very expensive, and this year the rates have also gone up all over. We have a 1 MIL / 2 MIL general liability policy which runs $ 2400 per year, based on the smallest annual gross I could get. This is up almost $800 from last season.

This is specific snow removal only. If you have another main line of work, and have different percentages, it wil be considerably cheaper. For example, my brother is a painter and adds snow removal as a side, around 10 % of his annual gross, and it is just a fraction of the cost.
 

Mick

PlowSite.com Veteran
Location
Maine
Tim, the cost of insurance the amount you need varies greatly by region and Tom is in a better situation to advise you than most. If you insure for snow plowing only, it is more expensive than if you insure for another business during the off-season. For instance, I list snow plowing and landscaping. The lower rate for landscaping brings the yearly cost down compared to doing snow plowing only - the cost would be based on "snow plowing" rate for twelve months. I pay around $900/yr for $300,000 in General Liability. My agent suggested increasing that to $1M and I probably will.

Most people in this area don't get General Liability if they plow only residential. Most commercial properties will require it.
 

jdjoe_97

Member
Location
NE Indiana
I believe as the others have said it greatly depends on your main line of work and the percentage of time you will be doing snow removal. I operate a lawncare business in NE indiana and carry a 2 mil general liability blanket for around $300 per year. I just added snow plowing this season and called the insurance rep. He said I can add plowing at no additional cost, except they exclude me from malls and strip malls. I don't know why, but dosn't matter to me because I do mainly my lawn customers residences and factories. Hope this helps, Joe
 

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