Starting Excavating Company, Insurance/Bank Recommendations

[JenniferKubotaM62]

For any of you who have started small excavation companies, any recommendations for insurance (prefer a company that at least knows what a tractor looks like, not a company that insures hot dog stands and anything else they can make a buck on, even better if you've had a claim and had a positive experience) and or bank (business checking etc, not for equip loans) to cover your business? I don't need workers comp so general liability, risk of pulling up a fiber or gas line etc... I'm in the process of getting my LLC filed so this is the next step.

Thoughts? Thanks in advance...

Jen

 

[ericm979]

When I had my LLC I just got a business checking account through the same bank I had personal checking with. I did it to make accounting easier- I would not have to hunt through my personal account for business expenses. However for some reason a business account costs a lot more than a personal one.

 

[Cataclysm]

Most around here use Farm Bureau. Make sure you understand where physically and what type of jobs your insurance coverage allows you to dig.

Banks around here will only look at 80% of equipment/property values if that. None will loan on "blue sky".

Absolutely use and follow the states underground locating system. Don't dig no matter how much of a hurry the client is in or how much money they offer you to dig without or outside of your locate.

Don't allow any non-insurance covered person to even sit on your equipment at a job site.

Get some percent of your fee upfront so the client has skin in the game before you dig.

 

[Jchonline]

For any of you who have started small excavation companies, any recommendations for insurance and or bank to cover your business? I don't need workers comp so general liability, risk of pulling up a fiber or gas line etc... I'm in the process of getting my LLC filed so this is the next step.

Thoughts? Thanks in advance...

Jen

Do you need a contractor license in AZ?

I use Hiscox for my general liability insurance. You may want to talk to a licensed agent in AZ to be sure you have the correct coverages.

https://www.hiscox.com/small-business-insurance/professional-business-insurance/contractors-insurance

Also if you dont already an equipment insurance policy (inland marine/KTAC).

 

[JenniferKubotaM62]

Do you need a contractor license in AZ?

I use Hiscox for my general liability insurance. You may want to talk to a licensed agent in AZ to be sure you have the correct coverages.

https://www.hiscox.com/small-business-insurance/professional-business-insurance/contractors-insurance

Also if you dont already an equipment insurance policy (inland marine/KTAC).

Thanks, no re license, thanks re Hiscox, have equip as my M62 is still financed but thank you again for info.

Jen

 

[JenniferKubotaM62]

Most around here use Farm Bureau. Make sure you understand where physically and what type of jobs your insurance coverage allows you to dig.

Banks around here will only look at 80% of equipment/property values if that. None will loan on "blue sky".

Absolutely use and follow the states underground locating system. Don't dig no matter how much of a hurry the client is in or how much money they offer you to dig without or outside of your locate.

Don't allow any non-insurance covered person to even sit on your equipment at a job site.

Get some percent of your fee upfront so the client has skin in the game before you dig.

Thanks, re banks I meant for business accounts, not loans but thank you. All of your points are hugely valuable, thank you.

Jen

 

[chris.benjamin1]

Do you need a contractor license in AZ?

I use Hiscox for my general liability insurance. You may want to talk to a licensed agent in AZ to be sure you have the correct coverages.

https://www.hiscox.com/small-business-insurance/professional-business-insurance/contractors-insurance

Also if you dont already an equipment insurance policy (inland marine/KTAC).

I’ll give Hiscox. A vote also. I use them simple a few questions. Exchange of money and I get a liability statement. To share

 

[JenniferKubotaM62]

I’ll give Hiscox. A vote also. I use them simple a few questions. Exchange of money and I get a liability statement. To share

Yea I'll give them a pass but thanks.... checked out their site and while they have choices for ice cream truck driver and hot dog cart owner, they had f all for anything related to excavation, land work etc... and I highly doubt hot dog carts pull up fiber optic lines so don't need the hassle of explaining to an adjuster one day that there is no mustard on a natural gas pipeline while flames are shooting out of it... but thanks anyways... (have updated my post to be more specific). I'm looking for a company a bit more focused on what we do, not one who lists 1,000 of misc not even related fields.. but again thank you.

 

[Cataclysm]

I see where your headed with that now, thanks for clarifying your original post.

I don't business bank where I personally bank. Too many mistakes made by the bank putting checks into the wrong accounts. Soon as you cross accounts like that they all can become business accounts and therefore targets of the IRS and lawsuits.

Maybe the state insurance commission has a list of agents who cover excavation business's?

 

[JenniferKubotaM62]

I don't business bank where I personally bank. Too many mistakes made by the bank putting checks into the wrong accounts. Soon as you cross accounts like that they all can become business accounts and therefore targets of the IRS and lawsuits.

Wow... that's an EXCELLENT point!!!!!!!! Thank you..