Volatile insurance market

Discussion in 'Business Fundamentals' started by Kinport, Jan 24, 2020.

  1. Mudly

    Mudly Senior Member
    Messages: 362

    I ending up switching from acuity to Erie Becuase a Erie agent showed up at my office. Long story short I sent my agent there quote and he even got a better number with better insurance. I have been overpaying for insurance by some 20% for 10 or so years. Both my agent and I were in disbelief, I was sick over it for a bit. My biggest issue with acuity is if a accident was reported to them they would just pay out without litigation regardless of the out come of the case... another story. Any way my bonds are still through liberty mutual but I’m liking Erie so far their contracts make more sense (haven’t had to deal with claims yet)
  2. KFX450RXC

    KFX450RXC Member
    Messages: 80

    I have been with Harford Mutual for many years. My snow plowing insurance has always been a part of my GL policy. I am a solo LCO but when we do get snow, I plow a LOT of properties. The problem here in NC is, we sometimes get snow and then again, there are times like this year where we probably won't have a single flake. I have two plows sitting in the barn nice and clean since last January.

    Anyway, Harford just sent me a letter two weeks ago that they are dropping my snow plow coverage when my policy comes up for renewal in March. I have already contacted my agent and we're probably going to go with a different company altogether. I hope from this thread that doing so does not become a major problem.

    It's hard to justify a big insurance expense on something you may not even do.
  3. E.L.P.M.

    E.L.P.M. Junior Member
    Messages: 10

    So this is my snow plow insurance story. I live about 45 minutes west of Philadelphia so we do get our fair share of snow most years, unlike this year. I have about 25 accounts, everything from small banks to big box stores. At the end of the 2018-2019 snow season I was told Erie was going to drop my GL policy because they didn’t want to insure snow removal anymore. I was paying around $11,000 a year with a 1 million dollar umbrella and that also included my works comp and auto. I then started shopping my insurance. The 1st quote I got was for $100k, 2nd was $50k and I could do any sites I wanted and the third was $40k with restrictions. They wanted to pick and chose which sites I could service, which doesn’t work with me. I Contemplated if I should just get out of snow all together but, I have too many expenses to get out now. I got one more quote for $37k with no restrictions so I chose that one. By they way this is just for GL with no umbrella. All together with auto and works comp I pay around $42k now. That is a little more then a 1/4 of what I make, it is crazy. Since I signed the GL policy a few other companies did get back to me with premiums starting at $5k. I don’t know how this could be. I do have a friend who is paying $7k for gl and does double of the amount of work I do and has a hospital that he does and is only pay $7k, wtf I don’t understand. Has anyone else’s insurance gone up 4 x what they paid last year? That is my rant, ha
  4. prezek

    prezek Senior Member
    Messages: 212

    I’m through donegal for commercial auto and GL. Based in PA somewhere I believe. I’d call them. My insurance expense is definitely not 25% of my gross.
  5. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 30,715

    If my insurance was 1/4 of my gross I'd get a real job.
    DeVries likes this.
  6. BUFF

    BUFF PlowSite Fanatic
    from FR NoCo
    Messages: 22,078

    Good thing it isn’t........ don’t think you’re employable.....
  7. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 30,715

    I know
    Mr.Markus, BUFF and Hydromaster like this.
  8. Defcon 5

    Defcon 5 PlowSite Fanatic
    Messages: 7,854

    I can answer that...No
  9. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 30,715

    I don't recall you being axed...
  10. Defcon 5

    Defcon 5 PlowSite Fanatic
    Messages: 7,854

    It’s an open forum...When you get the moderator title you can reprimand people...Until then...Your not the boss of me...MJD is
  11. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 30,715

  12. Michael J. Donovan

    Michael J. Donovan Head Moderator, Online Communities Staff Member
    Messages: 2,283

    ok, let's stick to the topic please

  13. Ben/Insurance

    Ben/Insurance Sponsor
    Messages: 210

    The insurance marketplace for snow removal is tightening up and my best advice is to deal with a larger, independent insurance agency that does a lot of construction/contracting insurance. They have the expertise and access to the marketplace that a smaller broker or a captive (Allstate) doesn't. The buzz in the business is that a hard insurance market is coming with pricing increases and changes in the terms and conditions of your insurance. Your broker will need to work hard marketing your insurance to interested carriers and negotiating with your current carriers. Get your loss runs every year and meet with your broker to talk about your claims (get the "open" claims "closed" whenever possible), marketplace conditions, and risk management techniques. Put your broker to work and utilize the services they provide.
  14. E.L.P.M.

    E.L.P.M. Junior Member
    Messages: 10

    Thanks for the advice!
  15. Jacobmb

    Jacobmb Senior Member
    Messages: 120

    I had two seperate company owners reach out to me this winter to ask me if I could take over their accounts. When asked why, one said they are getting out because of insurance rates hike after a slip and fall. YIKES! I was curious and asked they had 24 commercial accounts they had an increase from 10k to 40k. Insurance rates here in Onterrible are stupid.
  16. JoshA

    JoshA Junior Member
    Messages: 19

    My insurance broker didn't even give me a rate hike, they asked me for some details regarding a new property I picked up as a sub. There were some questions that made me uncomfortable to answer as a sub, so I pressed for some context. The response I got was:

    Sorry to be a pain, each new contract has to be re-underwritten as they have new guidelines for snow removal.

    They still need the locations that you may do snow removal, even if you may not attend each address on your route.
    They want to confirm that you don’t do any of the following as these are newly prohibited:

    -Large Shopping Malls, Supercenters and Big Box Stores
    -Roads (unless small private roads eg: Cottage road)
    - Municipal/Government (RCMP, Hospitals, Arenas, large Community Centres, court Houses, Schools, Public Sidewalks)

    Exception can be made for small rural government/ municipal buildings (eg rural school, park admin office where private contractors are hired.

    When you are requested to spread sand chips, is it by the GC or by the lot owner?"

    Funny they should ask, because that list includes 90% of my business for the past 6 years.
    shawn_ and Kinport like this.
  17. OP

    Kinport Senior Member
    Messages: 108

    so what happened? Did your rates go way up? Did you drop that 90% of your work?
  18. Fourteen Contracting Inc.

    Fourteen Contracting Inc. Senior Member
    Messages: 172

    I think he was saying they only asked him about the one new contract that he is acting as a sub on. They didn't ask about all the other ones. And didn't hike the premium.
  19. OP

    Kinport Senior Member
    Messages: 108

    Your probably right, I saw this line and it made me think they were talking about his current route