Insurance Liability insurance

billfires · Mar 7, 2007

Just got the quote in the mail for 500,000-1,000,000 excavation liability insurance for $2572!!! This is for part time work with a New Holland 1920 with 8 1/2 foot backhoe. I don't have any details but the quote came from an agency that specializes in insuring small contracters. Has anyone else purchased or gotten quotes lately? Thanks for any info. Bill C

Dirthog · Mar 8, 2007

seems way high I have 2 million and its only $1275 a year but I have had it quite a few years and only one claim

MadReferee · Mar 8, 2007

Your location might have something to do with the higher prices. Massachusetts is notorious for high rates to start with.

deereguy · Mar 8, 2007

Shop around if you feel that sounds high and/or call them and explain what your intentions are. They might think you are going to be doing heavy earth moving and your thinking septic tanks/leach beds, footers, etc. When I added my backhoe to my landcape maintenance service, my agent asked me some simple questions and I told him I was using it for light excavating, removing stumps, planting, etc. It raised my rates by $100 or so a year, but I was already paying them around $4K a year for the business and vehicles.

Good Luck!!

MarkV · Mar 8, 2007

As best I remember that sounds about like what I was quoted a few years ago. Something like $500 a year for what they called landscapers insurance and with a backhoe it became contractors insurance and went up in the $2500 range. Even doing light excavation things like water lines, gas lines and fiber optics get cut with a backhoe so the insurance gets pricey.

MarkV

rico304 · Mar 8, 2007

MarkV said:
As best I remember that sounds about like what I was quoted a few years ago. Something like $500 a year for what they called landscapers insurance and with a backhoe it became contractors insurance and went up in the $2500 range. Even doing light excavation things like water lines, gas lines and fiber optics get cut with a backhoe so the insurance gets pricey.

MarkV

This is exactly what I found when I checked into it. Many wouldn't even touch me if I said I was breaking ground with a tiller or PHD.

mytoys · Mar 8, 2007

That's the quote i got in down here in CT (around $2500/yr). I guess they're afraid you're going to dig something up. It's crazy because I can get 1 million for construction at $500/yr but to dig in the ground......

Jstpssng · Mar 8, 2007

billfires said:
Just got the quote in the mail for 500,000-1,000,000 excavation liability insurance for $2572!!! This is for part time work with a New Holland 1920 with 8 1/2 foot backhoe. I don't have any details but the quote came from an agency that specializes in insuring small contracters. Has anyone else purchased or gotten quotes lately? Thanks for any info. Bill C

Is that the actual price, or is that an estimate? Commercial policies are usually subject to an "audit" at the end of the year, with the actual rate is determined by factors including income and risk of activity (based on percentage).

Funny thing though, in the ten years I worked for myself those adjustments were never in my favor.

P.S.; they really don't like it when we start digging holes. I guess too many people have dug up too many utility lines, and othe "unintended targets"

ustobefarmer · Mar 8, 2007

I just renewed my insurance for my lawn service. I don't do any digging but we prepare the ground for new lawns. My quote was $661 for the year for the same liability coverage.