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View Full Version : All kinds of insurace. Someone explain.


jim163
10-25-2006, 04:12 PM
So first of theres commercial vehicle insurance. Then theres general liability. What insurances are necessary for employees?and what else am I missing? Im pretty sure most guys around here aren't properly insured. Im just looking at the cost of doing business.

rodfather
10-25-2006, 04:29 PM
Insuring your employees comes under the heading of Workman's Compensation. As for other insurances, your general liability coverage may or may not include inland marine coverage. Inland marine coverage is for theft which includes a deductble generally for any equipment over the value of $500 per item.

topsites
10-25-2006, 10:50 PM
There's Life insurance in case you die, medical insurance in case you get sick, car insurance in case you wreck, dental insurance in case of tooth decay or related maladies, credit card insurance in case you can't make the payments, blackjack insurance in case the dealer turns an Ace as their upcard, and insurance insurance in case your regular insurance fails.

MowerMoney
10-25-2006, 11:07 PM
I hate insurance. Gotta have it but you ever notice that's it's usually only good until you need it?:dizzy: :cry:

jim163
10-27-2006, 12:44 AM
There's Life insurance in case you die, medical insurance in case you get sick, car insurance in case you wreck, dental insurance in case of tooth decay or related maladies, credit card insurance in case you can't make the payments, blackjack insurance in case the dealer turns an Ace as their upcard, and insurance insurance in case your regular insurance fails.
thank you for this useful information. Ill be sure to get the dental insurance.:waving:

VBsnow
11-01-2006, 10:53 AM
Here are some lists common to what you do:

1) General liability: Damage you may do to a 3rd party. Everything from broken windows to broken people (not employees). For LCO's it is cheap. Prices start around $350 and up. You can request a deductable to reduce the premium but it won't do much. What is important to note is that workmanship is not covered. You will need to obtain E & O for this to be covered. Some companies offer this within their GL as an add on endorsement.

2) Inland Marine: This is property that moves around town such as your equipment. There is scheduled and unscheduled equipment. Scheduled is usually half the price of unscheduled. Scheduled is usually for items over $500 and unscheduled is for under(loose tools and equipment). Be wary of the fact that these generally do not replace the equipment. 99% of the inland marine policies pay on an ACTUAL CASH VALUE basis. Thus your policy loses value as your equipment does. Adjust values annualy to match. How much is your 99 Exmark worth today? Call around and price it.

If you add these two together it is now known as a Commercial Package Policy or a Business OWners Policy. It varies from company to company on what is available.

3) Workers Compensation: I have added to other threads about what is "required" by law. You should have it if you have employees, period. The cost is based on your per hundred dollars of payroll. You pay more to employuees, you then must pay more to the INS Co. General Liability usually works this way as well but it is on a per thousand basis of gross payroll.

4) Business Auto: Enables employees to drive and signage. Also enables better coverage for trailers and easier on the taxes. Some personal policies offer "business endorsements" but the advantages are limited. I personally do not want my employees driving anything in my personal name. I know these people and..

These are the big four. There are others...many others. However, do buy dental as well. After all, you gotta look your best to sell.

Hope that helps.

Josh.S
11-01-2006, 07:22 PM
I don't know if I am properly insured or not...

I have $1m general liability, and $9k for mower replacement, $2k for other tool replacement with a $200 deductable (don't know what kind of insurance it is but the insurance lady said if somebody steals my stuff they will replace it for the full amount up to what I have it insured for)

I only have personal insurance though, full coverage on my truck and liability for the trailer..

My insurance for the liability and replacement cost me $374 for 1 year coverage, I cant remember what the insurance costs for the truck and trailer cause I pay every 6 months, but I think it costs around $300 per 6 month ($600 per year)...

I dont pay workers comp because normally I work alone..

Is there any other insurances I should have?

LB1234
11-02-2006, 10:53 AM
Be carefull about Inland Marine Coverage and the scheduled/not scheduled.

As everyone else has eluded too...

The unscheduled equipment is up to a certain value I beleive mine is something like 1.5k. Then I'm offered another 500 bucks to replace common tools (brooms, shovels, wrenches, sockets, etc.). Unless the equipment that was stolen (or fire...I made sure I was covered for this.) is specifically 'scheduled' it will be coming out of the numbers above.

In general since I have a $500 deductible it isn't worth placing any equipment that is under this amount since I would have to pay that amount anyway.

Also, like others have said, you really should insure your equipment for a replacement value to purchase new...not a value of what it is worth. In other words if my mower is stolen tomorrow I have enough money to purchase that machine new (within a few bucks).


Another note...

I was speaking to my insurance agent about leaving my trailer at the jobsite with the equipment inside and giving her the scenario about someone hitching it up and pulling away with everything in it. She said the only way I won't be covered is if the insurance agent can prove that the trailer (doors, receiver, etc.) aren't locked. If they can prove that (not sure how they would) then the insurance company could deny the claim. I believe something to do with negligence.

TJLANDS
11-02-2006, 11:34 AM
I don't know if I am properly insured or not...
I only have personal insurance though, full coverage on my truck and liability for the trailer.
Is there any other insurances I should have?

I would make sure that your truck is covered if something happens to it while you are working. Personal insurance will not cover you truck if you use it for work(Commercially)

VBsnow
11-02-2006, 12:50 PM
TJ is right. The other guy on the ACV or RC is wrong.

If you value your property at RC and your policy pays on ACV, you will not be paid RC. Some companies do offer this but it is rare. The companies I work with only allow it for larger LCO's. I have seen people burned on this one. By all means, if you want to pay more, pay more. Ins. Agents work for commision and we only get paid on what you pay.Read your policy and it will tell you. It will show ACV(actual cash value) or RC(replacement cost). HAVE IT IN WRITING! I assure you the license to become and insurance agent is an east test, it in no way means you have all of the answers. Do not depend on verbal confirmations when your business is on the line. My friend was paid $1.80 for and $18 tool. His truck was broken into and they took thousands of dollars in tools. In the end he recovered hundreds instead of thousands. Needless to say he was pissed. I explained it to him and now he is my customer.

As for the theft of the trailer, don't leave it at the job. Here in VA, it would be covered regardless unless you misrepresented the security of the property. It could have an adverse affect on your rates if you are that careless w/ the equipment.

As for the deductable, most of my LCO's or tree services are carrying no less than 2-5K of loose tools with them at various times. If written properly, the $500 deductable will not be noticed as much on a 2k claim. Usually if there is theft they take it all. So one mower and some loose tools can add up fast. Again, always schedule items over $500. It is cheaper than unscheduled.

Also, do not put to much weight on insurance,tax, or accounting advise heard by word of mouth. While it is good to ask around, in the end you need someone who is a professional to help you effectively and accurately.

georgiagrass
11-02-2006, 07:31 PM
You may want to have a personal umbrella liability policy as well. While this will exclude most commercial activities, It will cover you for a number of other areas of potential liability that could prevent a plaintiff from taking your business assets through a personal claim.

osuokcdave
11-13-2006, 11:03 PM
Hey fellas,

I don't know all about what kind of insurance you need. I know some but not all. I do know that you can save a lot of money if you have agents compete for your business though, hehe.

The link below takes what kind of insurance you want and sends it to a bunch of agents.. they call you and tell you how good an offer they can make. If it's cheaper, GREAT! If not, oh well... plus it's free

check it out:

http://www.2insure4less.com/?s=232495&k=ls&rdto=bsmain

Hope it helps!

Dave

VBsnow
11-14-2006, 10:00 AM
Dave posted this on several posts I have written on. I believe he is connected to this site. This is not good advice. See below

All Independent Agents are middle men. I don't suggest using the net for this though. You will end up buying something from someone you cannot see. Two major problems:

1) No ass to chew. It is better to go see someone when there is a major problem than to call them.

2) What if you are late on a payment and there is no local office. The majority of Co.s do not take electronic payments.

You have people locally who can provide you the same companies. Type all of your prior INS and payroll info into a standarized form and send it out to local agents.

osuokcdave
11-14-2006, 10:07 AM
I understand what you are saying.

I do work for that company, and I do think that it is worth trying.

All of the agents that contact you are from very popular insurance companies, so you will be able to get an agent in your area. It is free, so you have nothing to lose.

The reason it is better than Progressive and other places that do free online quotes is because you get to talk to these agents on the phone, and you have no commitments to buy anything. They give you their quote, and if it's the best, you can buy it.

Much faster, cheaper, and better than calling all of them yourself :)

Good luck!

Dave

VBsnow
11-14-2006, 10:22 AM
I have to warn you all of something. These services that are posting on here telling folks to use online agents will not work. Many insurance companies offer insurance online for you personal insurance and this is fine. Commercial insurance is too complicated to explain via the "short form". Regardles of how "short" the form is, the company is still going to require you to have an application on file. Alot of business do not understand these forms and just sign them. These forms are a contract between you and the carrier. The worst policies I have looked at for LCO's were done via mail and fax w/ out of town agents. Agents within your reach are better for you, period. You need an adviser you can trust, not a phone number. One of my clients is lying in a hospital bed today and his check has been lsot in the mail or by the INS Co., were not sure which. Guess who is going to the hospital to straighten this out after checking my e-mails and posting responses? It ain't my website

osuokcdave
11-14-2006, 10:24 AM
The link I posted is for quotes only.

If Allied has the best rate, then you can call a local agent exactly like you would if you didn't use the site.

The site is actually helpful.

You get agents to COMPETE FOR YOUR BUSINESS.

This is good.

I do not recommend committing to a policy over the phone, BUT learning who has the best quote I do recommend.

Plus it's free :)

Dave

VBsnow
11-14-2006, 10:35 AM
Dave,

If I thought your site worked for business owners, I would promote it. This method is self serving on your part. If most business owners were savvy enough to answer their own questions, it would not matter. I would not need to post answers on this site.

Oh yeah, comparing your service to Progressive is crap. They only provide auto insurance. You are misleading people. In fact, I don't think you are supposed to be making direct solicitations on this website w/o permission

osuokcdave
11-14-2006, 10:42 AM
I'm sorry I offended you.

I am truly not trying to take advantage of people.

I have used the site myself and appreciated the response I got from agents. They called only a few minutes afterwards with quote in hand, and all I had to say was "Too high.", or "Can you do this amount?".

I believe people should be informed. So, if you know what kind of insurance you need, and want to see who has the lowest rate, try this:

http://www.2insure4less.com/?s=232495&k=ls&rdto=bsmain

It's free!

Dave

VBsnow
11-14-2006, 10:46 AM
I'm not offended. I am simply poking holes in your pail.

I am bored w/ this actually. Please note that Dave ONLY mentions PRICE. Everything is Cheap, FREE, and EASY.

These words scare me in a solicitation. I have done what I can do.