Insurance Insurance companies.

DCS · Jun 21, 2007

Just a few questions about insurance.

- What Insurance company would be good for a small tractor business? I guess I am asking are there insurance companies that cater to small businesses or should you just go to State Farm or Allstate, etc.

- How much insurance should a small business have?

- About how much does all this cost?

LoneCowboy · Jun 21, 2007

The biggies won't cover anything.
Find an independent broker and they'll be able to get you started

Minimum of one million dollar liability policy (that's usually what most contractors require to sub on their jobs)

Depends on the state and what you do. Excavating costs more tha mowing. (a lot more BTW). Spraying costs more, some companies have exclusions for doing certain things, be sure and define clearly what you do and don't do.

Don't you wish we had a business forum? (HINT)

daTeacha · Jun 21, 2007

There are several posters here in different businesses with their tractors. Compare who does what, and like LC says, check with agents in your area. Shop around and get ideas about what things you will be doing. You may find that you can get insured for some jobs but not others, so be careful about what tasks you take on.

DCS · Jun 21, 2007

LoneCowboy said:
Don't you wish we had a business forum? (HINT)

A business forum would be an interesting idea and I think a great resource.

I have actually been in business for 4 or 5 years now without insurance and have really been pushing my luck. I mainly do mowing and dirt leveling jobs. I know that at any giving time I could back into someones vehicle, air conditioning unit, etc. I guess the reason I have never gotten insurance is that my little business really started with very small jobs and not very many of them. I was doing them part time on my days off. I was mainly doing work for co-workers and after all, it wasn't a "real" business.

Now that I am retired and doing more and more tractor work, I am getting nervous about not having insurance now. I guess my little business is growing and it kind of snuck up on me. So, far I have not had any problems, but that could change on my very next job. So, I will now be shopping around for insurance.

Johnagain · Jun 21, 2007

I checked with Farm Bureau in Florida and as of this time they are not writing any new policies on anything other than car insurance. 1 million liability with a local agent was $750.00 a year just for mowing and clearing land, that doesn't include tree work or removal. Anybody have anything cheaper in your area?

8561 · Jun 21, 2007

There is no set answer to the original poster's question. The very best advice for any insurance need is to visit a local, independent agent and tell them exactly what you are doing and what you are loking to protect. Its often a good idea to talk to a couple of them, get one you are comfortable with and build a relationship with that person. Remember, they are helping you protect everything you own.

AlanB · Jun 22, 2007

I second and third what 8561 said.

Our first insurance was kind of neat. Had a guy call us to do some mowing, talked it out, gave him a bid etc. etc. He really liked the boss, and she had come highly reccomended. Then he asked to verify, and he needed that paperwork that we were carrying a 1 mil policy.... Well, sorry, we won't be able to do that work as we cannot afford it.....

He said he really wanted us to do the work, go see his insurance guy, and he called them ahead of time and set the stage. Hanna (otherwise known as the DW, the Boss, or she who must be obeyed

) went down and we got the price quote etc. Something like $500 a year if I rememeber right.

Came back to the guy, we really appreciate it, but we won't be doing that, it just would not pay out for us.... He said nonsense, put it on his estimate, and he would pay it up front as an initial customer fee (or something like that) So, he ponied up and bought our first years insurance for us because he wanted us to do the work, and wanted us to have insurance.

He is still our customer by the way.

(probably 13 years later

)

Anyway, call your independent agents and see who they deal, and what is available. It can vary greatly.

Johnagain, my Dad lives down in Paisley. I lived there a year or so, still visit once or twice a year.

NHTC30 · Jun 24, 2007

Have you checked with the dealer you bought the tractor from, I bought a NHTC 30 3 years ago, and while I was looking, I told the dealer that I was going to have to check to see how much insurance would be. They got insurance for me to cover the tractor and also a million dollar liability policy for the lenght of time I have my tractor financed. Both premiums together are between 250 and 300 per year (they are included in the financing, so I don't remember what they cost for sure). Your dealer might be the place to start, especially if you have the tractor financed.

IMCA38 · Jun 25, 2007

Since I work in insurance, I'll chime in with my $.02 here.
First off, no single company is best overall for every person. Different companies have different areas of expertise or comfort (called "underwriting appetite" in the business.) Most companies will write things that don't always fit their appetite, but they usually charge accordingly. Your best bet is to check with 2-3 different agents or brokers. Your agent is generally your "go-to" person on most issues anyway, so its good to see how you mesh with different ones.
As far as amount of coverage, you should look at $1 million in liability coverage. You may also want to add physical damage coverage for your equipment as your homeowners policy won't generally cover it away from your premises. You can also add an umbrella liability policy on top of your commercial general liability policy.
My estimate of cost would be $500-1,000 depending on lots of variables. When you get your quotes, compare them carefully, and don't be afraid to ask questions.
Also, you need to be very specific with what you plan on doing. Various classes of work are no-no's unless specifically written on the policy.
I can tell you a horror story about an insured who started out as a lawn mowing business and eventually expanded into lawn care. Unfortunately, he didn't apprise his agent of this and his policy wasn't properly endorsed to cover chemical application. He got some bad advice from a chemical company rep and sprayed a customer's yard with some chemicals that weren't intended for that use. He killed the whole yard and ended up with a genuine EPA environmental disaster on his hands. The whole yard had to be excavated a couple of feet deep and hauled away to an approved landfill, and the topsoil replaced and replanted. (Can you say lots of $$ to do this!!) And, guess what- NO COVERAGE!!
Bottom line- be sure you are getting what you need.