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Which Insurance policy ??!!

Discussion in 'Business Fundamentals' started by scottL, Mar 13, 2009.

  1. scottL

    scottL PlowSite.com Addict
    Messages: 1,613

    Ok, Ever think of this... probably not. Someone here probably has made a claim. But, I'm willing to bet that each insurance company handles claims differently than the next.

    Let's say you have the typical policies; home owners, truck, umbrella and general liability for plowing. In the act of plowing you have an accident ( doesn't matter fault ) .... Which policy get's tagged?
    >This is how it plays out ( I'm told ); truck, home owners, umbrella then general liability. However, if your plow hits something and not the truck itself then your general liability is tagged first.

    Let's say you have a sub performing work. Which on of their policies get tagged and does your policy ever come into questions?
    >This is how it plays out ( I'm told ); Sub's auto, then sub's home owners, umbrella and then general liability. Your policy will never come into play regardless of who owns the contract it only matters who performs the work.

    What have you guys found???

    Also did you know that your insurance company will pay out even if you didn't do the damage but, there is any wild 1% chance you could have. False claims are sky rocketing, fake accidents, etc.
  2. Mick

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

    Why would Homeowners policy (of the contractor or sub) be involved?

    If a sub does the damage, the General Contractor will still be the first named on the lawsuit. It would be up to his insurance company to show the judge why they shouldn't be held at least partially responsible. The homeowner hired YOU and you hired the sub. YOU are responsible to the homeowner (or other).

    As far as the last point, settlement is common. Whether it's a false claim is irrelevant. The insurance co would rather pay a thousand or two rather than possibly pay out ten/hundreds of thousands. That's why good record-keeping is important.
    Last edited: Mar 14, 2009
  3. scottL

    scottL PlowSite.com Addict
    Messages: 1,613

    I know in IL even if the contract is with me .... if the SUB is doing the work they are the ones held liable. But, I would think if something actually went to court everyone would be named in the fillings.

    This is not just residential but for commercial as well and it does not matter what your contract is with client. It kind of blows my mind how insurance companies will simply pay out. Actually it pi--es me off.
  4. linycctitan

    linycctitan Senior Member
    Messages: 588

    I just recently attended a contractors insurance seminar (at a recent trade show) and was very relieved at what I found out. First, all the time I spent designing my "Log Sheets" was more worthwhile than I originally thought (designed them mainly to ease billing), but actually they could release me from a negligence claim. Second, my contracts are actually worded correctly and will have a great chance at holding up in court. Third, unless I am found personally negligent, my personal assets and insurances can not be touched, thanks to being incorporated. As for which insurance foots the bill, depends on the incident. If I have a client who has a "trouble spot" on his property, and I notify him in writing of the issue and he does nothing to correct it (i.e.- a low spot that collects water from melt-off, then refreezes and someone slips and falls or crashes) the property owner (or his insurance) foots the bill. If I cause damage to a clients or public property with my truck or plow, it will be my commercial auto insurance. If an incident occurs on a property that I am contracted to service, and I have not fulfilled my obligations on a business level (i.e.- contract says 2" trigger, incident occurs at 2.1" or more and no one is on site performing work yet) then business liability picks it up. As for subs, I require to be listed as an "additional insured", so if they did the work (or failed to meet their obligations which are detailed in my subcontractor agreement) their insurance is tapped first.

    Sorry for the long read, just thought I'd share. Plus, I was actually told that I was 100% correct and legit for once!!LOL Feels good when hard work and frustration actually pay off!!
  5. larold83

    larold83 Senior Member
    Messages: 116

    i have auto insurance through proggressive and i have my plow truck wich i use all year round wit them also and i called them and they said since it was a weekend they would have to get back to me on monday or tuseday about a quote on plow insurance is it exspensive or not
  6. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Most of the time if your plowing and hit any thing it always goes through the truck insurance . GL is for slip and fall most of the time.This is why you should always keep your personal and business separate.
  7. dforbes

    dforbes Senior Member
    Messages: 247

    I backed into a car while plowing about 3 years ago. My general liabilty took care of it. The way it was explained to me was If I am driving down the road and hit something it is an auto claim. If the plow is down or I am actually working it is a GL claim.