Insurance question

[DanaMac]

I'm having my insurance company review my policy and shop around for better prices. One thing I'm wondering is do they have me classified as the right kind of business. they have me listed as Plumbing Residential. I have a feeling this may have my rates a little higher than necessary. Any ideas as to if this is correct?

[Dennis Spencer]

I think i'm the same class also.They may have ask how deep i will be digging.

[hoskm01]

I'm having my insurance company review my policy and shop around for better prices. One thing I'm wondering is do they have me classified as the right kind of business. they have me listed as Plumbing Residential. I have a feeling this may have my rates a little higher than necessary. Any ideas as to if this is correct?
I think you would have a lot more risk as a "residential plumber" making your rates higher. Though, if you are working in basements with backflows and such, perhaps thats required?

[koster_irrigation]

my insurance is $4600 a year basically.

trucks & liability

[LawnMastersTx]

My insurance company, Germaina, has me down as lawn maintenance and sprinkler repair. One million coverage with a $250 deductiable, $1054 a year is the cost for that. My family and friends are with them for house and car insurance, not sure if that helped to lower my price. Germaina only does insurance for people in Texas though, so no help to you DanaMac =(

[ICS]

I would just be sure that they know you are service and not installs.

[EagleLandscape]

Call Hotchkis (sp?) in Dallas, or CNA (mfp agengcy in ohio I believe) and ask them. Ive used both,

[AI Inc]

INS in your state may not have an irrigation catagory. If they do it will be cheaper to change it.

[gusbuster]

I would look into if there is a special class for your type of work.

Before I was classified as a straight landscape contractor which would cover me if I was doing retaining walls, ponds ect... I don't.

I did find a specialty company that does liability for companies like mine where we do basic residential sprinkler installs\repairs and garden maintenance but not full blown major excavation type of work that you would get with retaining walls and ponds(exposure)

mil and mil umbrella policy for me and 3 employees runs me a little over 1400 a year. The company is California Capitol Insurance and I do believe they have a CO subsidiary.

[Ferti-man]

DanaMac, have you found out anything yet? I was talking to another prospect company before my renewal comes up and they mentioned the Plumber class as well for Irrigation repair! I currently am classified under landscaping. This person does not think that I am properly covered :cry: I came on line tonight to look into this with all of you as well and found you beat me to the punch. I wonder if the an insurance company would give you a listing of the various classifications? I am going to email the ALCC ("Associated Landscape Contractors of Colorado" for you out of state folk) and see if they can help in this issue. I will post their response.
I will keep an eye out for more posts on this as well.

[Ferti-man]

Call Hotchkis (sp?) in Dallas, or CNA (mfp agengcy in ohio I believe) and ask them. Ive used both,

I am assuming that you are in Irrigation repair? If so, what did these companies categories you as? Are you still with one of these? :dizzy:

[DanaMac]

A couple days ago I sent back a packet to my ins. company that they sent me to fill out. It's basically a review of my policy - coverage, limits, deductibles, vehicles and equipment, classification, etc. they are going to shop my policy around this year. I did mention to them that I don't think that classification is correct. In this review, there were TWO classifications listed. There was the Plumbing class., and there was also a Landscape/Gardening class. So I don't know which is what!!! They did leave a message here yesterday and I will get back to them today.

[Ferti-man]

A couple days ago I sent back a packet to my ins. company that they sent me to fill out. It's basically a review of my policy - coverage, limits, deductibles, vehicles and equipment, classification, etc. they are going to shop my policy around this year. I did mention to them that I don't think that classification is correct. In this review, there were TWO classifications listed. There was the Plumbing class., and there was also a Landscape/Gardening class. So I don't know which is what!!! They did leave a message here yesterday and I will get back to them today.

I went on the Business Management community page and ask a few questions about this classification issue to some independent brokers out east to see what they know about this. Haven't heard back yet. I am going to try and get in contact with the Insurance commissioners office in Denver to see if I can get clarification from them. The agents I have spoken with are not 100% clear on which way I should go. one says Landscape is good enough, another says Plumbing! :hammerhead: Obviously, getting the proper one is important for coverage as well as for cost. The plumber category packs a large difference in premiums! :dizzy:

[Ferti-man]

I have been discussing this on the Business Management forum as well. Here is some feedback from an east coast insurance company for your consideration.

Originally Posted by VBsnow
I love Colorado, however I am not an agent there. I will answer how it works here though. I would place you in plumbing because your true liability lies in the plumbing products and breaking into, or accessing a water source. You in fact, could have more than one classification on your policy. However, a log must be kept showing who did what, where at, and when. Often with smaller accounts it simply defaults to the highest class. Irrigation is another of these relatively 'new' classes that may never have it's own class. Honestly, it fits in plumbing very well. If it makes you feel any better, the rate with many of my companies is not that different from plumbing to landscaping. Here in NC/VA, the liability rate is only charged per the thousand dollars of payroll. It takes a lot of payroll to make a significant change. However, there are companies that will quote a class of business knowing they are way to high. They seem to say that they do not want the class of business but will do it if the price is right. If you think your rate may be unfair, regardless of class, you may want to start looking around at what other people have to offer. Don't overdo the shopping though. Try to pick 3 agents who can cover the market pretty well and let the cards fall where they do. Have all of your paperwork ready for the process. I can promise you that being prepared and open will help you obtain the best rates. Don't buy into endorsed programs from trade groups because I have found that they are oftentimes obtaining that designation via 'sponsorships.' Construction classes are often written best by regional companies that pursue this niche. Good luck.

[Mike Leary]

All good points....bottom line is a contractor should carry AT LEAST a million dollars
in liability insurance..your bond is not that big a deal, 'cause if you have to use it,
the biz is toast anyway!:cry:

[Ferti-man]

I just talked to the state of Colorado Insurance commissioners office. They sated that general Liability insurance categories are up to the individual insuring companies to categories you as they see it best fits there terminology within the policies they cover.
They recommend that all your business operational concerns that you want coverage for, be well outlined in the application / renewal form and that you have them sign and return to you as proof you were including all listed items to be covered in the policy. If they miss categories you, it is on them to cover a claim if you can show the claim was "in the act" of your listed covered duties. Of coarse, this may cause a further review of you policy and re-categorizing you at this time may occur.
Hope this helps muddy the water. :dizzy:

[Ferti-man]

All good points....bottom line is a contractor should carry AT LEAST a million dollars
in liability insurance..your bond is not that big a deal, 'cause if you have to use it,
the biz is toast anyway!:cry:

Agreed Mike!:clapping: The problem I was dealing with was properly categorizing the policy. Have run into these issues down in cactus country? :laugh:

[DanaMac]

All good points....bottom line is a contractor should carry AT LEAST a million dollars
in liability insurance..your bond is not that big a deal, 'cause if you have to use it,
the biz is toast anyway!:cry:

I carry two million.

[Mike Leary]

I carry two million.

You make more mistakes than we do.:laugh:

[DanaMac]

I just talked to the state of Colorado Insurance commissioners office. They sated that general Liability insurance categories are up to the individual insuring companies to categories you as they see it best fits there terminology within the policies they cover.
They recommend that all your business operational concerns that you want coverage for, be well outlined in the application / renewal form and that you have them sign and return to you as proof you were including all listed items to be covered in the policy. If they miss categories you, it is on them to cover a claim if you can show the claim was "in the act" of your listed covered duties. Of coarse, this may cause a further review of you policy and re-categorizing you at this time may occur.
Hope this helps muddy the water. :dizzy:

Does this mean that if we do one little thing outside the norm, and something gets screwed up, we can be completely liable because it's not in the act of covered duties?

[DanaMac]

You make more mistakes than we do.

Never had a claim. Almost last year if you remember the thread on the flooded basement. But two of the banks I work on require it. Wasn't much of a premium change anyway.

Why you bustin' my b@lls? :laugh::laugh:

[Mike Leary]

Does this mean that if we do one little thing outside the norm, and something gets screwed up, we can be completely liable because it's not in the act of covered duties?

Maybe so, I have a blanket coverage that protects me from liability no
matter if I'm mowing or blowing.

[Ferti-man]

Does this mean that if we do one little thing outside the norm, and something gets screwed up, we can be completely liable because it's not in the act of covered duties?

I am not sure on this, but I doubt it. If you are doing irrigation repair, and you have to change out an existing PRV, inside the basement for what ever reason, as an example, I would think you are still doing irrigation work. If you are changing out a toilet :cry: I am not sure. May need to clarify the boundaries with your agent. (though if you are in the Plumbers category, this would be part of it I would suspect. :rolleyes:

[DanaMac]

So I just talked to my agent/broker. I am classified under the two that I mentioned - Plumbing and also Landscaping/Gardening. The second is to cover what we talked about a few comments ago. Some of the additional things that we may do outside of irrigation - landscape lighting, pond pump replacement, invisible dog fence, etc.

[Wet_Boots]

How do you fence in an invisible dog? :confused:

[DanaMac]

How do you fence in an invisible dog? :confused:

With an invisible fence - what else? :) Geez....

[Mike Leary]

As the thread sinks slowly into the Arizona desert.

[Ferti-man]

So I just talked to my agent/broker. I am classified under the two that I mentioned - Plumbing and also Landscaping/Gardening. The second is to cover what we talked about a few comments ago. Some of the additional things that we may do outside of irrigation - landscape lighting, pond pump replacement, invisible dog fence, etc.

I was feeling the categories were going to end up there. Have not heard back from mine yet, but suspect that is the way it will end up as well. I like the invisible dog part! Do they leave an invisible mess as well? :laugh::laugh:

[AI Inc]

How do you fence in an invisible dog? :confused:

How do you know when he runs away?

[Mike Leary]

How do you know when he runs away?

When you don't have to shop for dog food anymore.

[DanaMac]

How do you know when he runs away?

If an invisible dogs dies in your yard, and no one is there to see him die, is he really dead? :clapping:

[Ferti-man]

If an invisible dogs dies in your yard, and no one is there to see him die, is he really dead? :clapping:

Staying on topic, Would the smell of the invisible dog that is dead in the back yard, and no longer eating your food... add to the base rate of ones Liability policy? After all, this creates an invisible bio-hazard zone does it not? :cool2: :walking:

[DanaMac]

Staying on topic, Would the smell of the invisible dog that is dead in the back yard, and no longer eating your food... add to the base rate of ones Liability policy? After all, this creates an invisible bio-hazard zone does it not? :cool2: :walking:

Oh goodness..... how about we all get back on topic. Me included :drinkup:

[Ferti-man]

But seriously now, :rolleyes: one of the companies bidding for my General Liability policy, has me categorized as "Irrigation installation" only. I asked him if I am off task just a bit, per request of customer to fix a non irrigation faucet... hose bib... Kitchen sink faucet or shut off, would I be covered under this category? He said it was a good question and he would ask the underwriter ( did not know himself). We shall see. I think, like DanaMac, I will end up in the "Plumbers" category as well. Each underwriter seems to have variations of definition for various categories. No other bidder has a "Sprinkler installation" category.
I figure if we are in this category, we should get paid like a plumber but leave the low cut pants / shorts at home!! :cool2:

[Ferti-man]

Oh goodness..... how about we all get back on topic. Me included :drinkup:


Sorry DanaMac, its Friday and I am in a Friday giggles kind of mood. I think I am ok now though. :dizzy:

[DanaMac]

Sorry DanaMac, its Friday and I am in a Friday giggles kind of mood. I think I am ok now though. :dizzy:

Hey man, I was at it myself. Couple beers at the shop gave me the sleepys....:sleeping: Took me a little nap. All good here now.

[Ferti-man]

How do you fence in an invisible dog? :confused:

Wet_Boots got this started. Must be all the snow in NYC that got him all giddy. Must have been momentarily contagious. :laugh: Mike got started, but he got rid of the bug faster than we did. I'm blaming it on the altitude! :hammerhead:

[Wet_Boots]

Say it Loud! Off-topic and Proud!

[Ferti-man]

Say it Loud! Off-topic and Proud!

Don't get me started :hammerhead:

[Ferti-man]

Wet_boots, How is the snow up there? Is this affecting your rates? (trying to stay on topic) :laugh:

[Mike Leary]

Wet_boots, How is the snow up there? Is this affecting your rates? (trying to stay on topic) :laugh:

Good save of thread!