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Discussion Starter #1
Ok, since Mick brought this up in anouther thread, I thought it would be a good idea to review and discuss in a seperate topic.

Quote by Mick - "My agent said my regular vehicle insurance is all I need for plowing."


I had State Farm as my insurance provider for 9 years and just switched to Allstate.

Keep in mind about 95% of my snowplowing work is residential!

I have plowed for 10 years with as many as 6 trucks. During that time, I was always told that my carrier would cover ANY damages, if I was plowing residential accounts. The agent said "as long as I was not doing commercial work, it did not matter"; This question would be asked every couple of years, and this was the repeated statement.

They even claimed that any other driver would be covered, even when/while/or in route during a snowplowing event. My old agent stated that this was due to the # of times the driver would be using the truck. Since we only get around 10 snowfalls a year, the insurance company stated they did not have a problem covering any driver due to the avr. # of times using the truck. Something about normal insurance covering occasional, other users, and this would never be a factor.

After 10 years of coverage, I have had three minor damage claims that were submitted to my insurer.

2 - Were garage doors, that the insurance company said they would pay for. Both were hit by employees. I chose to fix the garages myself.

1 - Was an automobile accident that one of my drivers got into. He was hauling salt from the supplier, and was following to close to anouther car. When the car stopped, he turned to avoid it, and sideswiped the entire length. Then the trailer took out the rear bumper, rear quarterpanel and door. The damages were around $4000.00. They knew who was driving, and new what we were hauling salt. They did not say a word, and paid the claim.

When I switched to Allstate, due to my cousin getting into the business, he basically told me the same story that State Farm did.
I even asked him to double check, and he came back to me with the same answer.

I have checked into commercial insurance for covering all my trucks. It would put me somewhere over $25,000. a year for coverage. I did pay $2,500.00 last year on my commercial truck for comp. & collision.

Any one else have the same experiences. All comments are welcome.

Chuck B.
 

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As a beginning snow "manager" :) I am soooooo confused about insurance policies. Everyone tells me a different story it seems.
All that I gathered is that :
I don't need commercial insurance if I don't advertise on my truck.
(as stated by my insurance carrier)

?????

David
 

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My take on insurance:

If you accept pay in any form for service (ie: snowplowing) you are holding yourself out as a professional. You are also in "business" as a snowplower. Therefore, you are liable for any damage done by you or as a result of your actions or inactions. If you do damage to anything or anyone while in the act of plowing, you will consider whether to submit a claim to your vehicle insurance. The insurance company is not in business to lose money. Therefore, they will examine your policy to see if you are "covered". If you were in the act of conducting "business" with your vehicle, the insurance company will want to see a clause that this is a covered activity. Hence: Commercial Vehicle Insurance.

The second way a claim may be made against you is if you complete your business (plowing, salting, sanding etc). Some injury occurs (most common is someone slips and falls on an area you plowed or were responsible to plow). Who is responsible for making the damage, hospital bills etc? Everyone involved from the building owner, to the person holding the lease, to the company who was contracted to plow and to the guy who actually did the plowing will all be named in the lawsuit. Then the judge will decide if any of them are not potentially liable and be removed from the suit. Now, anyone named in the lawsuit will share in any damages awarded. If you have General Liability insurance (which listed snowplowing as your business) - good. If not - you're still liable and the persons awarded damages can now put a claim against any variety of your property, depending on the state's law.

There are other ways of being sued, but those are the main two.

Of course, you could just take everyone's word that they will never sue you.
 

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Discussion Starter #6
Thanks for the replies.

As for liability insurance, I do have coverage. So this should be covering any slip-fall-claim, etc., regardless of residential or commercial work.

I will look at my comp/coll. policy, to see if I can find any other info.

Does anyone else that only does residential plowing, carry commercial comp and coll. coverage? If so, what are you paying in premiums.

Chuck B.
 

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I just got a commercial vehicle policy and snowplowing liability coverage policy. It took me 2 weeks to find someone to write the policy - nobody wanted anything to do with it. Progressive insurance is carrying the policy. It is a 6 month policy and cost me $670. Liaibility coverage only, no comp/collision.
 

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Im paying about $360 for the GL and around $300 a month for commers ins on the 2 trucks
 

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I paying around $1400 per year for GL and Comm. Ins. thru Farm Family for both trucks
 

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I just picked up my GL policy from my State Farm agent late this afternoon, and got a copy of the Cert of Ins that was faxed to the company that I'm subbing.

The type of policy indicates "contractors", but no where on either document does it states "snow plowing."

Do I need to have either document list snow plowing as the type of operation?
 

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Satz28 said:
I just picked up my GL policy from my State Farm agent late this afternoon, and got a copy of the Cert of Ins that was faxed to the company that I'm subbing.

The type of policy indicates "contractors", but no where on either document does it states "snow plowing."

Do I need to have either document list snow plowing as the type of operation?
Yes. Your "Policy Type" is something similar to : " Small Contractors Policy Declaration" This should list somewhere on the form the "Classification" which is the type of business you are covered for contracting. It may be one, such as Landscaping or more, such as Landscaping and Snowplowing. Your premium will be based on the Classification(s). For instance, snowplowing is more than landscaping so if you have both listed, your premium is based on landscaping for part of the year and snowplowing for the other part.
 

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State Farms Contractor Policy

When I asked my questions yesterday, I had not revieced the complete insurance package from my agent. Today, in the mail was the complete package.

There is a page tiltled "Schedule of Opererations" On that page it can list different types of contractor operations.

The description listed is "Snow removal from private streets, driveways or parking lots (includes street cleaning)"

I guess I should have waited for all of the information to show up before I opened up my mouth.




:rolleyes:
 

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Quote by Mick - "My agent said my regular vehicle insurance is all I need for plowing."


just curious if you carry a GL?

wouldn't commercial auto insurance cover a "slip and fall" or similar accident since you were in the truck?
 

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Got Snow? said:
Quote by Mick - "My agent said my regular vehicle insurance is all I need for plowing."


just curious if you carry a GL?

wouldn't commercial auto insurance cover a "slip and fall" or similar accident since you were in the truck?
Yes, I carry both Commercial Vehicle and General Liability Insurance. "Slip and Fall" refers to someone else who gets injured on a place you are responsible for clearing. No, your vehicle insurance will not cover that.
 

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State Farm GL

State Farm contractors GL$565/year with Special Form 3 operations. (snow plowing)
 

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Hi Guys, Great Site. I'm going thru State Farm for my GL this year. I was curious how much ins. is provided for $560. ex. 500,00? 1 million? I'm waiting on a quote, I would like to see if they are consistant or just pull a number out of a hat:) Thanks. This site sure helps. Greg
 

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Coverages are as follows:

$1M Business Liability
$2M Products-completed operations
$2M General aggregate

$500 deductible

Also covers business property and buildings
 

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Discussion Starter #19
Just thought I would bring this back up to the top.

Anyone got phone #'s to Erie or Farm Family?

Chuck B.
 

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heres a number to my erie agent... if nothing else he can put you in contact with an agent closer to you...

814-459-4380
 
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