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Questions about Insurance

Discussion in 'Business Fundamentals' started by rdv350, Apr 27, 2007.

  1. rdv350

    rdv350 Junior Member
    Messages: 10

    Hello guys, I am new to this forum and the plowing business itself. I have been toying around the idea of starting a plowing business with a friend of mine for next winter and have some questions about insurance. After reading through some of the post I realize the importance of being insured when plowing. First of all I plan on using my everyday driver truck for plowing, so would I be able to adjust my current auto policy to cover plowing or do I need a seperate insurance policy because it would be considered a business? Second question, since my friend is going to use his truck for plowing would he have to get his own insurance policy or could we put both trucks under one business policy? Or could he be considered a sub-contractor under my company and would my insurance cover any damage he does? My last question is what do you have to do to make sure your insurance covers someone falling on a parking lot you plowed, etc.? Is that covered under the auto insurance policy? Sorry for all the questions, but I just want to make sure my Butt is covered if I decided to go through with this. How do you guys handle the insurance in these situations?

  2. troy28282

    troy28282 Senior Member
    Messages: 178

    Best thing to do is sit down with an agent. I believe that you can get snowplowing coverage on a your everyday driver but you will have to pay have to more because it is being used to make money just like paper carriers, pizza delivery people, and rual mail carriers. If your friend is going to plow for you then he needs to have his own policy of sorts as well because if he doesnt then when you get audited (like you will) then you will have to pay more because he is working for you but doesnt have coverage. You will also have to get a general liablitiy policy to cover any thing that will could go wrong. In this industry, insurance isnt cheap!
  3. RLM

    RLM PlowSite.com Addict
    Messages: 1,270

    For the winter I swich all my trucks to commercial auto policy (2-3 more than personal use) with 1 million. Then you will need business liability also, good luck as it is hard to find for snow only, let customers dictact the limits. We have 3 million, as per industrial contract, if I were only doing residential I would stick to 500K or 1 million.
  4. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 9,883

    You and your buddy need to organize your business.
    IE an llc,inc ,limited partnership..........

    Then your Co. can lease or buy your personal vehicles. Your CO's Insurance will then cover both vehicles.

    You will need commercial liability INS on top of your regular vehicles INS.

    You also need to organize your Co. so you can keep your privet assets separate from your business for tax and liability reasons.

    You need to be careful having your friend hired as a subcontractor.
    He will need to set up a separate business and get every thing associated with it.
    Then you need him to bid on the work to be preformed and file a 1099 with the tax-man.
    Do not pay him by the Hr. pay him by the job.

    It may be difficult for the tax-man to see him as a subcontractor and not an employee if he does not have his own stand alone business.

    Just some thing to think about.