Inland Marine Policy

Discussion in 'Lawn Mowing' started by chuck bow, Jan 20, 2007.

  1. chuck bow

    chuck bow LawnSite Senior Member
    Posts: 701

    Whats everyone paying on there inland marine policy for equipment , I just increased my coverage amount a few weeks ago and i about lost in this am as i got the bill for increased coverage , it doubled i didnt double the coverage but the damn bill doubled
     
  2. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Posts: 2,116

    I thought I was paying $450 twice a year for inland marine but we only pay it once a year. It is for $25,000 worth of equipment. So, $450 per year for $25,000 worth.

    Later,
    DFW Area Landscaper
     
  3. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Posts: 2,116

    I think the price you pay has a lot to do with how much you spend on other insurance.

    With my State Farm agent, I insure a total of 7 F-150's, 6 enclosed cargo trailers, my Nissan Frontier, my home and my inland marine.

    Perhaps I get a good rate on the inland marine because of all my other insurance through this agent??? I don't know. Perhaps $450/$25,000 isn't a good deal. I don't know.

    Later,
    DFW Area Landscaper
     
  4. chuck bow

    chuck bow LawnSite Senior Member
    Posts: 701

    I was paying 350.00 for 30,000.00 and i increased it to 40,000 with a new mower purchase and some smaller stuff ie tools pressure washer ect and was charged a additional 350.00 increase i think and maybe / prob iam off base but i think 700.00 a year is a little overboard for this i guess since state farm lost a lawsuit after katrina there are trrying to make up the loses
     
  5. chuck bow

    chuck bow LawnSite Senior Member
    Posts: 701

    My agent ( who is my uncle) with state farm told me one time it depends what part of country you are in what rates will be and yes i have 5 vec and life in plus homeowners with them i feel iam getting no breaks
     
  6. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Posts: 2,116

    It is probably worth considering a cancel. They must be making a ton of profit on these policies. We don't file the small stuff or they'll drop us and what are the odds of EVERYTHING getting stolen at once? For me, all my stuff is located in 8 different places...my garage, my enclosed storage unit and 6 separate trailers. Only an employee would know where everything is and could possibly clean me out.

    Another fear I have is someone with a cutting torch going from trailer to trailer, cleaning me out. But if they did that, they'd have to have a huge box truck or trailer. Those Honda mowers can take up a lot of space. About the only person who would understand the value of the landscape equipment is another landscaper. My friends can't believe I pay a grand for a 21" mower. As far as pre-meditated theft, bringing a cutting torch along and the equipment to haul it all away, and also knowing what a used Honda can bring...there aren't very many people in the market to risk jail over that.

    I think the smart plan on this is to save up around $15,000 cash, put it in a high yeild account and cancel the policy. Just know that the $15,000 is off limits until you sell or shut down the business. Not only would you save the annual premium, but you'd also have a nice liquid asset on the balance sheet that generates profit in the form of interest. If you ever do get cleaned out by theft, pull out the $15,000 and then maybe you could buy the insurance or replenish the self-insurance program.

    Later,
    DFW Area Landscaper
     
  7. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    About $400 on 20k equipment. State Farm. Never used it but's it's worth every penny to me.
     
  8. Tharrell

    Tharrell LawnSite Silver Member
    Posts: 2,964

    Do you guys have "replacement cost" of your equipment in the event of total theft/destruction?
    With my empty trailer getting destroyed last year, I'm considering getting a policy.
    If my equipment had been on the trailer, I would have been out of business right away.
     
  9. LB1234

    LB1234 LawnSite Gold Member
    Posts: 3,210


    We do. I have replacement costs on 3 trailers, 3 mowers, 2 snow plows, 2 salters, dingo + certain attachments, the list goes on. Plus my policy covers certain 'hand tools' up to something like 1k and then miscellaneous equipment up to 2500 bucks or something.
     
  10. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    Yes, that's why my premium runs a little on the high side. It's like having collision and comprehensive on your car. A depreciated value wouldn't buy me much.
     

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