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Tharrell
06-16-2011, 05:16 PM
I just got a request for proposal from a state agency and noticed they have gone up on their requirements for liability insurance to 5 million.
I've got 1 mil/2 mil with Erie now and don't know if it's even available.
Anybody have 5 mil?

R & R Yard Designs
06-16-2011, 06:19 PM
Yes. It's there you will pay for it dearly though
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ALC-GregH
06-16-2011, 06:29 PM
If they demand more out of you or whoever then the price should reflect the higher demand of liability coverage.

vencops
06-16-2011, 06:32 PM
Just add the upcharge to your bid price.

Done it many, many times in commercial constr. projects requiring bid/P&P bonds.

WJC
06-16-2011, 07:19 PM
Heck, you might have to sell some of those vintage bikes to afford that! haha

topsites
06-16-2011, 10:12 PM
No.

The logic is that this weeds out the smaller competitor because evidently they got tired of playing around,
now either you have a company big enough to absorb 5 million worth of insurance without it affecting the bid,
or what they're trying to tell you is that it's likely outside of your league.

It's getting a message across without trying to say it, not trying to be personal but if it comes right down to it
that can probably be had as well, but they're trying to tell you, this one's probably big boy turf.

Really it actually might make things easy, if you stop and think about it.

Tharrell
06-17-2011, 12:21 PM
It's just a couple of weigh stations out on the interstate.
I used to do them but lost the last bid.
5 million is absurd for this contract.
All the state contracts reflect this I was told.
My insurance agent is checking into it to see if I can get it.
Damn, It's just a piddly squat little account but, it's year round for 3 years.
Hell no I am not selling my bikes!:hammerhead:

Again, does anyone here have 5 mil and with who?

Dr.NewEarth
06-17-2011, 01:00 PM
Our insurance is brokered through a landscape association member company.
AFter 911, our liability insurance coverage went from two million to three million.
(average cost per year is $800 with 1000 deductible)

Most bids ask for two million. There is a large city outside of Vancouver that wants
5 million liability insurance, plus errors and omissions coverage and a business license.

I used to write alot of arborist reports there. It more than triples my rates if I
am to continue contracting in that city.

txgrassguy
06-17-2011, 01:44 PM
On a couple of state university contracts my company has had in the past large g.l. coverage was mandatory. One was at five million the other at seven with a bond for twice the contract amount. Added to all of this was the mandatory prevailing wage pay requirements and the first contract, without all the bullcrap was worth maybe two hundred grand.
Once I added up all of the extraneous stuff I bid the contract for a bit over four hundred grand and was eliminated since I was the low bidder. The second one I tripled what I thought was an outrageous bid and actually got the contract.
The work never materialized due to g.c. malfeasance so the work was suspended.

I don't mind getting paid for the headache associated with the reporting requirements needed to work for universities but the state of Texas is a completely different matter all together.

To acquire the additional coverage all I had to do was notify my under writer - it was no big deal. Then again Scottsdale is a huge company.