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What do you do in this case?

Discussion in 'Commercial Snow Removal' started by Big Dog D, Nov 3, 2005.


What do you do when customer asks to be named addittional insured?

  1. Charge them extra money

    5 vote(s)
  2. Tell them you control when services are triggered & stopped

    2 vote(s)
  3. Option 1 & 2

    7 vote(s)
  4. Just add them and do nothing different

    20 vote(s)
  5. I have no idea what additional insured means

    15 vote(s)
  6. I don't need no stinkin' insurance

    1 vote(s)
  1. Big Dog D

    Big Dog D PlowSite.com Addict
    Messages: 1,134

    A customer asks you to be named as additional insured on your policy, what do you do? Please feel free to elaborate with a post after you vote!
  2. DugHD

    DugHD Senior Member
    from Maine
    Messages: 420

    Never had anyone ask me to be additionally insured on the policy .?? But all the time they ask for themselves to be additionally on the policy. Doug
  3. kingriver

    kingriver Senior Member
    from alaska
    Messages: 216

    We have several that have ask to be (additional insured). The first couple we had added to our insurance cost me, like 40.00 ea. After that the insurance co. didn't charge me any longer, at least not again this year where we picked up one that wanted to be addtional insured. Go with the flow, they probably have to have it in order to hire-out...(example) your on their property, you hit someone, then they try to sue them due to your accident, this insurance covers them in that event., of course, I know that you realize that their insurance would probably cover this, this is additional insurance (someones rates just increased) In my case I cant charge more for that coverage due to the fact that I am dealing with schools, and govt stuff.. I would put all the cost into the bid, break it down,, 2 bucks a push,, 20 pushes (DONE)
    Last edited: Nov 3, 2005
  4. NJ Plowman

    NJ Plowman Senior Member
    Messages: 794

    We get that alot. I just add them on... :nod:
  5. Big Dog D

    Big Dog D PlowSite.com Addict
    Messages: 1,134

    How many people here know what it means to be named as additional insured? Has your agent ever explained it to you?:confused:
  6. Big Dog D

    Big Dog D PlowSite.com Addict
    Messages: 1,134

  7. gpin

    gpin Senior Member
    Messages: 390

    Walk away politely. I have no problem having an insurance certificate sent out. To name a client specifically makes me feel like a target. Unless you are working for a municipality when it is normal procedure to specifically add the town, borough , city to be named specifically on the policy. If I understand this thread....
    Last edited: Nov 4, 2005
  8. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    I'd be careful and discuss this thoroughly with your insurance agent. Typically, when you sub out to someone, they will be named as "additional insured". Fairly routine. What's happening, is your making them the same as an additional party on your policy, except they aren't paying any part of the premium. For a customer to whom you provide service (plow) to be named as additional insured seems pointless. Think of it like a line. You are the insured and the customer is the object of the insurance. Now, with the contractor to whom you sub, he needs to be "put in the loop", hence the Additional Insured. Now there's a line from you to the customer and the contractor to the customer. But in this situation, it's almost like he intends to plow and use your insurance in case he gets sued for something he does.

    Are you sure they don't want a simple "Certificate of Insurance"? This is usually sent to the customer by the insurance agent showing that you are insured, for what amount and the term of the policy. You will usually tell the agent this is for XYZ company and the agent will indicate on the Certificate that "XYZ" company which is engaged in whatever type of service is covered by this policy.

    You don't have a vote category of "talk to customer to clarify their needs".
    Last edited: Nov 4, 2005
  9. Pristine PM ltd

    Pristine PM ltd PlowSite Veteran
    Messages: 3,891

    I have heard that it can cause problems if, let's say, you crash both your trucks into the side of a clients building, and it writes off both your trucks and does $20000 worth of damage to the building. You are in business and need your new trucks right away, but because the client is on the insurance, they get paid first which can take time and so you can get screwed over by having them on your policy. There building is fixed while you are still waiting for a cheque for your new trucks. I don't know if this would happen, but I have been told that it can happen and is a risk.

  10. bterry

    bterry Senior Member
    Messages: 183

    We do it every year - wouldn't get the jobs we get without doing it.
  11. flykelley

    flykelley 2000 Club Member
    Messages: 2,127

    I have it in my contracts to be named on there policy, not the other way around.

  12. SLSNursery

    SLSNursery PlowSite.com Veteran
    Messages: 140

    Additionally insured is normal

    That's a pretty normal administrative request, at least for commercial accounts. It allows the insured party to be notified if your policy is cancelled, and will prevent them from being duped by some unscrupulous contractor. For normal cases, we name them and provide a certificate. We have had some cases (usually for construction, not plowing) where there have been some specific endorsements in our policy naming the general contractor, or something called a waiver of subrogation (which is BS, but necessary on some larger jobs), or bonds. In these more complicated cases, we pass the costs along to the customer. The pass through is usually direct, such as informing the customer that there will be a minimum charge - i.e. the price is x thousand dollars plus y dollars for the special insurance. The additionally insured deal also provides that they are kept in the loop at renewal time to automatically get a new certificate with current policy limits.

    A few years ago, we had a separate insurance company writing our plowing insurance and there was a charge for additionally insured, or even just certificates. I found out from the agent what costs were 'built in' and what was extra. This is a case of where the cost pass though is more indirect, more or less absorbed by the charges for service. It was at this is when we ceased providing partial bills to the commercial customers. What we used to provide as a courtesy to good customers (partial charge for partial services) has pretty much gone by the wayside to cover these types of overhead.

    As far as others getting paid first, I'm not sure how that relates to additionally insured. That sounds more like a loss payee situation where a bank or other interested party gets first dibs on a payout.

    I know it isn't related to this poll, but have you guys noticed that the insurance market has softened. We seemed to get way more for our dollar at our last renewal over the summer.
  13. ThePlowKing

    ThePlowKing Member
    Messages: 59

    I charge $100 to add clients as additional insured. My insurance company charges me $75 to add each additional insured and I take $25 for my self because I have to drive down to my insurance companie's office to fill out the paperwork. If it didnt' cost me $75 per additional insured I prob wouldn't charge. I'm not in the business of loosing money and if I weren't charging i'd be out almost $1000.
  14. golden arches

    golden arches Senior Member
    Messages: 193

    From the other viewpoint, as a commercial customer I required my vendor to list me on their policy and provide a certificate of insurance.

    At the least, it assured me that the insurance existed. It also assured that if the vendor canceled or was canceled I was informed by the insurance company. I also expected to pay a small service fee for the policy endorsement.

    Now that I provide services for commercial clients, I arranged that my clients can obtain the certifiicate of insurance as needed.
  15. Big Dog D

    Big Dog D PlowSite.com Addict
    Messages: 1,134

    My agent explained to me that by a customer being named as additionally insured that you "the policy holder" are agreeing to be the first one "in line" when somebody makes a claim against the service(s) that you are providing and that they "the Client" are "protected" up to the point that your insurance runs out. We are charged $500 per acct. named or can by a blanket coverage for $1500.

    My problem isn't with the money, that is easy enough to bill back to the client. My problem arises with the fact that these customers want the protection offered by being named additionally insured but also want to control the trigger point or threshold for services. Why would anybody agree to be the first person to be "sued", and allow the customer to set the bar for services high enough that the likelyhood of an accident happening is immenent?

    I was just wondering if others had any idea of how this worked, and how they deal or have dealt with it? I am surprised at the lack of attention this subject receives compared to say, lighting and, ballast.:dizzy:
  16. Mick

    Mick PlowSite.com Veteran
    from Maine
    Messages: 5,546

    Now that makes sense. Instead of the injured party suing the homeowner who in turn sues you, the homeowner directs the injured party to your insurance since it is also his insurance policy. By naming him additional insured, it has relieved him of having to make a claim against his insurance. If there is a claim - no problem, the insurance didn't cost him anything, the claim gets paid and his name comes off that policy with his still intact. You are left holding the bag since your liability insurance policy will be cancelled or "non-renewed". Your vehicle insurance rates will skyrocket. But since the policy was in your name and not his, his insurance and rates are not affected.

    But do what you want to do.