Liability

[B7500]

I will be retiring in two weeks from my job as an Electric Meter Supervisor for the local Electrical utility. I have been asked by a few private contractors if I'd be interested in using my Kubota to dig for electrical services or to set poles after I go. I love any excuse to play with my tractor but I'm concerned about the liability of working on other people's property. Do you do work "outside" and how do you deal with the potential of a lawsuit?
-Terry

 

[Boondox]

My homeowner's insurance policy covers my tractor while it's on my own property, but they made it very clear that off my property I would need a commercial policy to protect myself and others.

Best to check with your carrier. Pete

 

[cj7]

I found out the same thing about the insurance.

 

[Golfgar4]

You absolutely need insurance. There are two different kinds that you can check into. Either "contractors" or "landscapers" insurance. As Pete said, contact your carrier.

I believe the contractors insurance will cost more, but it also will probably provide better coverage. If you're going to be doing any kind of excavation work, it'll need to be contractor's insurance.

You should probably do a search for "insurance". I know this topic has been discussed numerous times in the past.

Note: Here's a thread
<A target="_blank" HREF=http://www.tractorbynet.com/cgi-bin/compact/showflat.pl?Cat=&Board=construction&Number=166262&page=&view=&sb=&o=&vc=1>Do You and What Do or Would You Charge</A> that has a lot of good information about insurnace in it.

 

[cowboydoc]

My homeowner's insurance policy covers my tractor while it's on my own property


Just a little tidbit if you make any kind of money at all with your tractor you cannot claim it under your homeowners policy and need a separate policy.

 

[Kodiak]

Garry:

You said It very well. I went with contractors insurance, instead of lanscapers. The landscapers insurance was to defined as to what was covered and what was not. Contractors ins. seems to run about 15% to 20%higher than landscapers ins. If you go with contractors you may want to sit down with your agent and define some parameters of what your doing and what will be covered. Otherwise they will write you a blanket policy, and those can be quite expensive. They will also try to factor in depreciation schedules for your equipment. These schedules are usually provided by them are quite unrealistic for most small operators. Be firm about what sort of hours, wear,etc you expect out of your equipment. Or they might only pay off a fraction of its value. If your only doing random jobs once in a while its really hard to put a value on just how much to carry. Just remember that with your customers the skies the limit when it comes to their imagination. Several times I have been amazed at how some twenty year old damage finds its way onto a claim. You might talk to any other small operators in your area to find out who covers them and for how much.

Check into your states requirements to see if you need a contractors license also. If your just part timeing it, you may be able to find a general to carry you as a subcontrator under their license.

 

[Kodiak]

Question for CowboyDoc or some of the other farmer/ranchers out there. Does your farm insurance cover your equipment if your working on someone elses property? Even if its just random small commercial jobs?

 

[Gary_in_Indiana]

<font color=blue>"Does your farm insurance cover your equipment if your working on someone elses property? Even if its just random small commercial jobs?"</font color=blue>

I'd guess not, if only because then everyone would avoid commercial insurance simply by claiming they're only doing "random small commercial jobs." You might get a claim covered if it's a neighbor and you're digging his fence post holes because he plowed your drives last winter or something like that. I'd be real reluctant to rely on it if I were at a stranger's (spelled "customer's) place, however.

 

[cowboydoc]

Yes Kodiak a farm policy covers you for everything you do with your equipment for profit as long as farming is your primary business, 80% rule. The only thing my farm policy doesn't cover is for licensed vehicles. I can even go and build a road with my tractor for the neighbor and I am covered or clear snow with the tractor in the winter.

 

[dgood1]

Tawoo,

One thing that you want to make sure that is done, is that before you dig all utillities buried locations are identified. Many locations have a single 800 number that can be called and those people will come out and mark all buried lines.

If you dig and the call hasn't been made it can get real expensive. The phone company charges by the number of pairs that have to be repaired on copper and fiber gets real expensive.

Caveat excavator,

Don