Liability Insurance

Discussion in 'Business Operations' started by craigs lawncare, Aug 29, 2003.

  1. DUSTYCEDAR

    DUSTYCEDAR LawnSite Fanatic
    from PA
    Posts: 5,137

    before u cancel make sure u can get ins some where else in pa the ins companies are dropping landscapers and not writing any new polices my ins has gone up 3 grand since 9-11 and i have had no claims cant find a better deal so i staypayup
     
  2. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Posts: 1,847

    look into american family...they were dirt cheap in my part of the world
     
  3. craigs lawncare

    craigs lawncare LawnSite Senior Member
    Posts: 310

    PJ Binder and Macs Lawn Co, thanks for the feed back.

    I am not going to make any hasty decisions yet, but I plan to have a different insurer by Friday. I have been fuming over my insurance company's actions (soon to be previous) all weekend. I have a close friend who used to be in the insurance business who said you should get insurance quotes every two years from other companies just to keep them honest. My rule of thumb is once they raise their rates for no apparent reason like say a recent claim, I start looking around. The problem is, it usually takes a couple of years for insurance company's to increase their premiums, not a few months. :angry:
    Craig
     
  4. gene gls

    gene gls LawnSite Gold Member
    Posts: 3,209

    I just switched to Farm Family, saved a bundle. Also, they are more adpted to a seasonal business.

    Gene
     
  5. Hawkeye5

    Hawkeye5 LawnSite Senior Member
    Posts: 295

    Insurance rates are based upon class experience. You are lumped in with all the other lawn services a company writes nationwide. If the company has adverse loss history on the lawn service class then the lawn rate is going to go up for everyone that company insures, even though the majority of lawn services never had a claim. Insurance is a pooling technique where everyone pays in and those few that have a claim are paid. The trick is that while companies can project the number of claims using probability theory (not as accurate as mortality tables life companies use) and other actuarial methods, no-one knows which particular business will suffer a loss. I know that my basic general liability rate is going to increase 24.5% next year (Erie Ins. Exchange). I will have to increase prices in order to maintain the same profit margin. I would guess that the majority of companies are going to increase general liability rates, if they haven't already. Just like in the lawn business, there are insurance companies that lowball price. May not last long and most that do either withdraw from insuring that type of business or go belly-up (yes, insurance companies go broke; 31 in '00, 24 in '01, 38 in '02). Make sure you deal with a company that carries at least an A financial rating from AM Best.
     
  6. Moguy

    Moguy LawnSite Member
    Posts: 238

    craigs lawncare, not sure where you are located in Michigan but, Larsons in Livonia gave me good prices and havent raised them as of yet.
     
  7. craigs lawncare

    craigs lawncare LawnSite Senior Member
    Posts: 310

    Moguy,

    I live close to Jackson MI centrally located between Ann Arbor and Kalamazoo.
    Thanks for the input everyone. If anyone else has any suggestions please chime in.
    Craig
     

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