I'm curious, what are you guys with small operations (like a small dozer, truck and trailer outfit) doing for insurance? What sort of coverage do you have and who is writing your policies for you? I did a brief search of the forum and didn't turn up anything useful. Thank you!
My business policy covers 3 machines worth around 400,000 and it has a million in liability with a million dollar balloon and costs around 3800 a year Semi truck policy is around 1600 and includes the trailer and my work pickup
You only carry $1 million in liability? Not trying to poke, I'm just curious. My dad is carrying $2 million for landscaping and light excavation and was carrying even more when he was doing commercial and residential excavation. I carry $1 million in liability for my lawn maintenance business alone.
We have 20 million in public liability (Down Under Dinero)...it was 10 but most businesses now have 20 and its considered minimum for a lot of tenders. My policy includes excavation which may undermine a building because of the retaining walls we sometimes build. Down ere it only cost like $1,500 or someting...I don't really know cause my machines an vehicles are all covered and I jus gets a big bill. Workers compo is the huge killer in this country...it costs me about $6000 per labourer a year...an that sucks...not because I have to pay it (well... ) but because there is no incentive for me to be a safer operator than average Jack down the road. ($1Aud = $0.83Usd at present). Our liability cover is also at 20mill because we are sometimes the prime contractor to big commercial clients and the exposure to a big business construction is huge.
I am primarly a land improvement contractor and try to avoid town as much as possible. Having a balloon helps keep to cost down and adds a million in extra coverage when it is nessary. If I hade a 2 million dollar claim I suppose I would have an auction and go to work somewhere else because I couldn't afford to buy insurance after a claim like that.
Thanks for the replies. Very informative. I ask this because I'm building a business plan for a small dirt pushing operation I'd like to start. All business will be rural, confined to brush clearing, farm road construction & maintenance, etc. No deep excavations, no long distance hauls. I have a couple of rate requests out and some ballpark figures in the spreadsheet but I really wanted a reality check from you guys that are doing it every day.
Squizzy you are right on about WC. I feel the same way about it. I am lumped in with idiot contractors that don't even understand what they are doing is dangerous much less have a safety plan. When their guys get hurt everyone pays for it in higher premiums. My incentive for safety is I want all of my guys to go home in one piece every day. $1500 for $20M worth of public liability? Man thats cheap. What does public liability cover?
CM..you an me are gunna have to get some placards an go demonstrate somewhere...we can be an "Unruly Mob". I assume you operate under the same "pooling" system for premiums we have....so that we all pay for bad operators...thats the bit that gets my goat. My annual premium could be anywhere from 1 to 2 thousand...I don't really know because all my gear is thrown in with the premium which ia about $3,400. Public Liability is simply liability cover for "others" as a result of my work....everything from some idiot walking into my site and hurting themselves to the damages I may cause. If I build a wall and it falls on someone's car...the car is covered....the wall is not.
Just name the time and place, I have some old poster board somewhere... I am in the same "pooling" system. It is a self-insurers (sp?) fund with the Home Builders Assoc. We get a "divedend" if premiums in are more than costs going out- but I use the term sarcastically because it always seems the "dividend" is the same amount as my audit. Every year they send some pencil pusher to go through my books looking for some reason to charge me more money. By the way - always wanted to be part of an unruly mob. I see. My general liability covers "the public" as well as the structures/improvements that we do. What kind of policy covers your "product liability".
Product Liability is included...save for "Defective Workmanship" If the wall fails because I didn't compact properly then the damage it causes is covered but the wall is not. (Always get compaction certification for wall over 3' is in my work procedure). If the wall fails because some Cat Skinner is driving a D10 on top of it then my Underwriter goes into bat for me. It is a bit tough because it ends up putting the onus on me to prove I built the wall properly....this is done with photos and certificates and witnessing. Some guys have been sued by a neighbour for putting a wall in the wrong spot, hence my Term and Conditions talks about surveys etc. The other stuff, like excavating, earthworks etc is pretty industry standard stuff. Dial-Before-You-Dig plans must be held.
My general liability and equipment coverage runs approx. $10K for $2 million coverage per year. Our workmans comp is 14% of reportrd payroll.
I carry 1 million liability, 1,132 1 million business auto, 1,760.10 Workmans comp, and I am the only employee 1,881 Allied ins. is the carrier If your work truck is in a accident the auto liability, and an umbrella policy if you have it, will cover it. The General liability will not give any coverage to auto accidents. Kent
Just curious - why are you paying WC on yourself? There are many disability policies out there that have a cash value. I exempt myself, as owner, and the company pays the disability policy. If I carry the policy to term without a claim I get every payment back. Of course they make interest on my money but it's not a bad deal - at least I have a chance of getting my premiums back.
I need to ask my insurance agent the same question.
Every state is different on WC.In NY,I do not need it as I am a 1 horse show,although if I sub for a general for $5K or more,the general has to pay in for me to his insurance co.Either I'll reimburse him or we'll get creative with a bunch of $1--$2K jobs.And with municipality work,I now have to sign off on a notarized form letter from NYS. that explains why I don't need WC.To me WC sucks because at a time I was carrying 3 men,all legal,taxes,WC.I fell and fractured my pelvic bone and this 80 year old WC doc afterwards told me because II'm the owner,no benefits would come my way--got nothing--years paying in--absolute BS.Now I can only argue with myself and if I'm in a good mood, I'll give myself a pay raise every other time at the bar or strip club.
Thanks again all! I have insurance bids due from Sunbelt and another operation (can't recall the name right now) but, on first blush, the numbers look good. Meanwhile, I've gone ahead and bought the machine I'd queried about here . It's the right price, in good condition and can do what I need done on some personal projects regardless of whether I start a small business outfit or not.