Insurance costs

[bindian]

In recent emails, I had been given a cost of $750 for my tractor liability insurance in my new start up business....Big RED Beast Excavators. Now the Farm Bureau agent just sent me quote of $2806. My question is what insurance do Y'all have and how much do you pay for digging in the dirt?
hugs, Brandi

 

[ricklman]

St. Farm.... Brand spanking new Kioti CK30HST and implements.... $299 US. -- Note: Strictly farm use, NON Commercial.

 

[Mrfarmertrees]

I have a small tractor mowing business. My general liability insurance is around $760 a year. Good luck.

 

[koamfps]

2 NH Tractors, Trailers and AG equipment. Right around 500.00 a year Farm Bureau! Small Business Liability Michigan

 

[Bob Rooks]

Is that for a performance bond too? Usually those are for specific jobs.

 

[bindian]

Thanks for the replies guys, but I am asking for business liability insurance prices from businesses that dig in the dirt, as in excavations. I have Farm Bureau insurance on the tractor and trailer and my truck now, but am looking for liability insurance for just the tractor to do as a business, what I like to do at home................dig in the dirt.
hugs, Brandi

 

[bindian]

Is that for a performance bond too? Usually those are for specific jobs.

Bob,
No, it is not a performance bond. The quote is just for general liability for digging. The agent says if it was not digging, it would go down to around $1800. I am wanting to start up a weekend type tractor use business.
hugs, Brandi

 

[MtnViewRanch]

Brandi, I have no idea what insurance for what you want to do is going to cost you. What I do know is that it is going to be a bunch of money. I have 2 different businesses, the insurance people love me. I have had 2 claims in 37 years of doing business, won one claim lost another for 14k. Those claims were over 20 years ago. I don't dig in the earth, but I do weld. My insurance is quite a bit north of what you have been quoted. My understanding is that any back hoe biz is expensive to insure.

You might find that it is hard to be a weekend business, do it all legitimate and have it be worth your time and effort. Not trying to shoot you down, just saying how it is. Your truck and trailer have to be insured differently also, and that is more money. It may be a lot different in Texas, but in California, it is just about impossible to do what you want to do and make any money for yourself.

Good luck

 

[kootch88]

I am a SF agent. It depends on your location obviously. Anytime you do anything more than superficial lanscaping type of digging it gets expensive. If you were in Maine the $2800 quote does not seem bad at all.

 

[Bob Rooks]

If you call it "Landscaping" it's cheaper than "Excavating/Grading/Digging".
Here is a site that you can run various scenarios (for free).

Contractors General Liability Quote - Coverage - Contractor General Liability Plan - Construction General Liability

 

[MtnViewRanch]

If you call it "Landscaping" it's cheaper than "Excavating/Grading/Digging".
Here is a site that you can run various scenarios (for free).

Contractors General Liability Quote - Coverage - Contractor General Liability Plan - Construction General Liability

While what you say may be correct, I would bet that if something did happen where you needed the insurance and you had dug down some, the insurance would not cover you. If you cheat the coverage, you most likely will not be covered when and where you might need the coverage and then you might as well of had no coverage at all.

 

[2manyrocks]

I'd be cautious what I called it in the sense that you don't want to say I do A if A is not the appropriate description and it gives the insurance company a basis to deny coverage for a claim later. I would think there is a difference in risk between landscapers who dig up a few inches of earth to set out plants versus excavators. There may also be a difference in risk if your area is full of underground utilities including fiber optic cables. Seems like someone on TBN hit a fiber optic cable at one time, but my recollection might be faulty.

 

[kootch88]

While what you say may be correct, I would bet that if something did happen where you needed the insurance and you had dug down some, the insurance would not cover you. If you cheat the coverage, you most likely will not be covered when and where you might need the coverage and then you might as well of had no coverage at all.

Insurance is a contract, and misrepresenting your duties is grounds for denial, in fact, there is no question someone who does digging for a living, but says they do landscaping is in for a huge problem if there is a claim, which is why landscaping liability costs about 700 bucks vs. 2 - 3 grand for excavating.

 

[Storm56]

Insurance is a contract, and misrepresenting your duties is grounds for denial, in fact, there is no question someone who does digging for a living, but says they do landscaping is in for a huge problem if there is a claim, which is why landscaping liability costs about 700 bucks vs. 2 - 3 grand for excavating.

Exactly. There is a huge difference in what kinds of claims can happen between a landscaper and an excavator, thus the large difference in rates. If you misrepresent your operation I can guarantee you in the event of a claim you will find yourself on the wrong side of your insurer and 99 times out of 100 you will be paying the claim.

What many people seem to forget is that insurance is a contract between the insured and the carrier. They cover you for a specific risk and if a claim results they will handle it. It will state on your dec page what your operations encompass, work outside of that and you are on your own. All that is required for no surprises is to be honest and upfront with your carrier. As with most things in life, honesty is the best policy.

 

[Bob Rooks]

OK, I need to clarify myself. In no way did I mean to suggest any misrepresentations. I guess I wasn't clear that landscaping has it's limitations as to depth and scope. I just thought that "landscaper" would be more appropriate for a week-ender or one day project business. But if you plan on doing septic & wells, well that's a different can of worms altogether.
Landscapers get to dig too, speaking from Washington state. Texas may be different.

 

[Storm56]

Landscapers operations typically incude some leveling, digging for trees etc, removal of trees etc, lawnmowing, light trimming of trees and shrubs, installing small fish ponds and lawns, snow removal, (by endorsement usually), and the like. In no way does it include diiging ditches, footers, foundations, driveways, backfilling, larger ponds, roads, utilities etc.

Again if in doubt check with your insurer. So yes you can perform light digging related to landscaping. And no I did not get the idea that you were intentionally tring to mislead an insurer. I was just informing you of what could happen if you perform operations outside of your contract and have a mishap.

 

[bindian]

If you call it "Landscaping" it's cheaper than "Excavating/Grading/Digging".
Here is a site that you can run various scenarios (for free).

Contractors General Liability Quote - Coverage - Contractor General Liability Plan - Construction General Liability

Thanks Bob. I will check it out. I need to find a company willing to work up a composite policy. Majority of the work will be land clearing and stump removals, moving and leveling dirt. Oh yeah, don't forget mucking out koi ponds. (See attached photo) I'll need to specifly that pond digging will be done on ranches or farms and not in surburan areas. I heard from an online friend you can itemize it down by percent of each kind of work with the company he had.

Anyway, I do know before I dig anywhere unknown to me I can call 811 for utilities to come out and mark everything. Simple. I have done that twice and the next day the rep from the pipeline up the road showed up.

It is the insurance folks that have this industry and the country in their high pockets. Oh yeah...........and lawyers!
hugs, Brandi

 

[JDeereman]

Contractors General Liability Quote - Coverage - Contractor General Liability Plan - Construction General Liability

Not the kind of firm I would do business with. Do some checking. Their certificates of insurance are often rejected and they don't seem to pay on claims. Fine print in terms is scary. They are unincorporated, unregulated and can pull your coverage at any time without notice. This insurance is about as worthless as it gets.

Theo

 

[bindian]

Not the kind of firm I would do business with. Do some checking. Their certificates of insurance are often rejected and they don't seem to pay on claims. Fine print in terms is scary. They are unincorporated, unregulated and can pull your coverage at any time without notice. This insurance is about as worthless as it gets.

Theo

Theo,
Thanks for the heads up.:thumbsup:
hugs, Brandi

 

[bindian]

If you call it "Landscaping" it's cheaper than "Excavating/Grading/Digging".
Here is a site that you can run various scenarios (for free).

Contractors General Liability Quote - Coverage - Contractor General Liability Plan - Construction General Liability

Thanks Bob, but no help here. They don't do business in Texas.
hugs, Brandi