Thanks to someone in another thread … I forget who … I got a quote for liability insurance through The Hartford and an agent in Fredericksburg.
I don’t understand most of it, except the dollar amount they want, which I think is reasonable for me.
What are a few hot items that I need to l;ook for? Things that I should have, and things that I should avoid.
“When asked if you can do something, tell’em “Why certainly I can”, then get busy and find a way to do it.” T. Roosevelt
Replies
I coupled tool insurance with my liability making it a good deal.
If yours is the audit every year to come up with your true premium, get proof of insurance from each an every sub once a year and for the odd sub, b/4 you pay their bill.
Keep material allotment (if it's a dollar amount) in the back of your mind and upgrade a rider if you have passed the covered amount.
Remodeling Contractor just outside the Glass City.
Quittin' Time
I would definitely check into the required for insurance certs from subs. My policy, with a desirable company, requires me to have written subcontracts with subs, and 'additional insured' status on their policies. That can be a major PITA, and I have found that some of my subs cannot provide the certs for free, they are charged ~$250 for each additional insured they issue, and it's only good for the policy year, not forever.
They have the right to audit my files and my checkbook. There are exlusions for things like condo work, apartment work, EIFS, and the like. Talk with the broker about all of the conditions, and get as much info as you can from him. Reading the actual policy is difficult, it's lengthy and lots of legalese.
Extra riders for additional types or work.
If you include design work - errors and ommissions
If you manage properties
My wife does domestic work and occasional nursing stintys - that adds another fee for coverage
Calvin laid out the bsics for certificates from ALL subcontractors
Welcome to the
Taunton University of Knowledge FHB Campus at Breaktime.
where ...
Excellence is its own reward!
try to find an agency that can write all risks..
see if your agent can package all of your business insurance.. you can get some good discounts if they can be packaged ( office contents, umbrella, GL, Auto, WC )
this is NOT a buyer's market for insurance.. so if you are new it will be difficult just getting your insurance placed..
keep a lookout for agencies that cater to contractorsMike Smith Rhode Island : Design / Build / Repair / Restore
I was half kickin' around the idea of starting to do some contracting again, so I called three local agents to get some estimates for insurance coverage. All three specialize in contractor's insurance, and they all reiterated the same thing to me. I asked about starting a business with around $750k/year volume, mostly subbed work, no employees. Here's what I was told:
Option 1- No employees, maximum of 15-20% subcontracted work- $750/year. Of course, that means I'd be out swinging a hammer all day, since I'd have to perform 80-85% of the work myself.
Option 2- Up to four employees, still a max of 15-20% subbed- $2,200/year. Better, but I don't want to deal with employees.
Option 3- Unlimited subcontracting, no new homes, EIFS, condo/apartment work- at least $20,000 per year. Ouch...
Seems they think if you're subbing everything, you can have too many jobs going at once, and not be able to properly supervise the work. Of course, Jersey's recent requirement that all home improvement contractors register with the state and provide proof of a minimum of $500k in GL insurance probably hasn't helped the rates.
Looks like I'll just keep doing what I'm doing........lol.
Bob
i've heard those restrictions quoted by others . ( or maybe it was you in another post )
i have no restrictions.. i do have to get certificates of insurance from all subs..
and if i don't .. their entire invoice becomes subject to premium for THAT trade.. can get VERY expensive
i do hear horror stories about cancellation of coverage, yada, yada, yada.. so i try to maintain good contacts with my serviceing agent..
we do apx. $500K / year.. about 1/3 each for labor , subs, materials...Mike Smith Rhode Island : Design / Build / Repair / Restore
Were those figures you quoted all-risk covereage--tools, liability, injury--or just liability?
And what do they cover on liability? Your costs to tear out and re-do if a product fails and the mfgrs warranty only covers product replacement?
Dinosaur
A day may come when the courage of men fails,when we forsake our friends and break all bonds of fellowship...
But it is not this day.
Ok, here's a few excerpts from the proposal, so you can tell me if it's way outta line.
It has coverage for a lot of listed items, including valuable papers, A/R, fire dept service, Appurtenant structures, newly constructed or acquired property, business persoanl property, tenants glass, arson award, and automatic eqwuipment breakdown.
Liability coverages are each occurance $1 mil, general agg $2 mil, products completed $2 mil, personal and advertising injury $1 mil, fire legal liabily $300k and a few others.
Contractors stretch enfdorsement for A/R, sewer backup, compuiters, contractors equipment and tools, employee dishonesty, personal property of others, etc.
$1248/year premium.
"When asked if you can do something, tell'em "Why certainly I can", then get busy and find a way to do it." T. Roosevelt
That seems like a good deal...I'd check the limits on the tools/property.We just had 20K in stuff stolen (tools) from a job. So far so good on coverage. (Erie) And even if it takes all week...READ THE FINE PRINT!!!!!!!!!Then bitc* at the agent if he didn't get you what you wanted.Carpenter has saw...thief steels saw...I want a new saw. That is how I told my agent to cover me...seems ok now.Did I mention the FINE PRINT!
Make sure to ask your agent if your tools are stolen that you will get a check for the replacement of those tools if you go out and buy them all new.Some policies adjust a claim for depreciation, so make sure you can get back what you had with no problems.This is usually a little extra for the policy but worth it.Also take pictures of your tools, write down serial #'s, and if you have a receipt for it keep this all together and give a copy to your agent.J.P.http://www.jpkfinefurniture.com
aka Replacement ValueIt's Never Too Late To Become
What You Might Have Been
[email protected]
Yep. Thats the word.http://www.jpkfinefurniture.com
Here is how the game is played now.We had our stuff stolen....I had to provide a list with name model...The insurance co has a consultant that arranges to buy you new stuff (if you have that coverage) at a discount. So the exact repalcment stuff will be arriving at my door any day now. The things I did not care to replace will "cash out" and help with the deductable or other stuff. Oh yea, read the FINE PRINT...and get a good agent. I'm glad it's working...just VERY slow.
Hmm, interesting. When my truck was broken into all I did was call my agent with a list and prices. They sent a check for the amount I had listed minus my deductible. That was in 2002 and I no longer have that policy so things may have changed. May be the difference in insurance companies and the fine print.J.P.http://www.jpkfinefurniture.com
Dino-
There was an adder for tool insurance, and injury is covered by Worker's Compensation insurance, which wasn't a part of this quote. I didn't get into the specifics on the quotes very much, as I was just amazed by the numbers. Until recently, $1000/year was the high end for this kind of coverage around here.
Bob
"Seems they think if you're subbing everything, you can have too many jobs going at once, and not be able to properly supervise the work."I don't think that it is lack of proper supervise as exposure.A painter sub can just as easily leave oily rags around that burn down the house as you can.But with using sub's you can have out 10 painters thus 10 times the exposure.
I have a great agent.
his Dad started the agency ... my father in law was best friends with the Dad way back to grade school ... so I get pretty good treatment. Plus ... they're a small town agency.
Best advice my agent gave me when I told him I was first gonna shop around ...
said make a list. Sit down and in everyday language ... write out each and every senerio where U think U might be making a claim.
Like someone else already said ... U have a saw .. it's stolen .. U want a brand new one to replace it exactly ... or the new and improved version of same saw.
I literally had 2 pages on a yellow legal tablet filled.
We walked thru each and every situation ... that meeting took about 2 hours.
in the end ... he was one of the few that would play my little game. And I'm pretty sure he didn't mean trap him in his office for 2 hrs ... but hey ... I took his idea and ran with it.
Found out there is a way I could get limited roofing coverage. Also ways to cover my tools stolen from the van or the job. And from home if I put them inside. And the locked garage. All different situations. Also found out I could insure materials ... on the job ... in the van ... and in route. Again ... all different.
And if I break something of the customers ... when walking thru for my first meeting. When installing that material. When installing unrelated materials ... and if I'm not there but that material still manages to fall and break something.
walk thru it all ... ask tons of very basic Q's ... then ask for the ways to cover yourself as U see fit. MY agent had suggestions ... some I took immediately ... some I added years later ... some I never followed up on. Each policy should be a custom fit.
btw ... I have .. and so far like ... Erie 5 Star . It's a one size fits most that can be easily adjusted.
Jeff
Buck Construction
Artistry In Carpentry
Pittsburgh Pa