Liability Insurance

4451 Views 16 Replies 11 Participants Last post by craigs lawncare, Sep 11, 2003

craigs lawncare

Discussion Starter · Aug 29, 2003

Hello

About three months ago I changed my liability insurance that covers my lawn care business to the same company that my home is insured with.
On Wednesday August 27th my insurance company sent me a letter stating that they were increasing my liability insurance $200+. When I called and asked them the reason why they suddenly increased my rates, they told me it was because lawn mowing is considered a high risk business. Before I cancel my insurance I want to know if you guys know of some fair insurance companies out there.
Craig

1 - 17 of 17 Posts

Team Gopher

· #2 · Aug 30, 2003

Hi Craig,

Here is a thread on this topic.

rodfather

· #3 · Aug 30, 2003

"Fair" insurance companys? That's gotta be a new oxymoron like "postal worker", "military intelligence", or "government ethics"...LOL

Doc Pete

· #4 · Aug 30, 2003

Mine didn't go up this year...... I'm in Jersey...........

craigs lawncare

Discussion Starter · #5 · Aug 31, 2003

Switchless, Rodfather and Team Gopher, I have not had the best of luck with insurance companies lately, my rates over the course of the past year have been a lot like the price of gasoline. They just keep going up and up. :angry:
Craig

Doc Pete

· #6 · Aug 31, 2003

Originally posted by craigs lawncare
Switchless, Rodfather and Team Gopher, I have not had the best of luck with insurance companies lately, my rates over the course of the past year have been a lot like the price of gasoline. They just keep going up and up. :angry:
Craig

Well, I can see that. Those that wanted something for nothing, like government sponsored free programs (a la Hillary Clinton), suing each other at the drop of a hat, and other things that take away responsibility for ones actions, are findings they are paying in the long run. Sadly, its catching up to us faster than we thought.

I was in a parking lot, backing up and saw another car backing out too, I stopped, they didnt and hit the side of my truck. The insurance company said I was 50% at fault Just because I was there. Until things like that stop, rates will keep increasing.

craigs lawncare

Discussion Starter · #7 · Aug 31, 2003

Originally posted by [email protected]
Well, I can see that. Those that wanted something for nothing, like government sponsored free programs (a la Hillary Clinton), suing each other at the drop of a hat, and other things that take away responsibility for ones actions, are findings they are paying in the long run. Sadly, its catching up to us faster than we thought.

I was in a parking lot, backing up and saw another car backing out too, I stopped, they didnt and hit the side of my truck. The insurance company said I was 50% at fault Just because I was there. Until things like that stop, rates will keep increasing.

Switchless, I hear you and agree with you all the way on this one 100%.
Especially, about the lack of people taking responsibility for their own actions!
Although, if somehow insurance fraud could be curtailed and the frivolous lawsuits brought down to a minimum, do you think the insurance companies would dream of lowering their rates?

I don't think so. What it does is give these crooks an excuse to jack up your premiums.

Craig

Doc Pete

· #8 · Aug 31, 2003

Originally posted by craigs lawncare
What it does is give these crooks an excuse to jack up your premiums.

Craig

Yeah Craig,
It really ticked me off the my agent told me, "sorry, if you had a police report we might look at the accident differently". Gees, in other words, they are saying I'm lying. Didn't like that at all. Worse, the guy that hit me was over 80 years old

lawnman_scott

· #9 · Sep 1, 2003

Old Dominion,, National Grange Ins Co. I think they are in Delaware

tiedeman

· #10 · Sep 1, 2003

my liability didn't go up this year, but my workers comp went up $150.

DUSTYCEDAR

· #11 · Sep 1, 2003

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

MacLawnCo

· #12 · Sep 1, 2003

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

craigs lawncare

Discussion Starter · #13 · Sep 1, 2003

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

gene gls

· #14 · Sep 2, 2003

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

Gene

Hawkeye5

· #15 · Sep 9, 2003

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.

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Moguy

· #16 · Sep 9, 2003

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.

craigs lawncare

Discussion Starter · #17 · Sep 11, 2003

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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